UAE-based technology conglomerate Letsia has announced a SAR 50 million ($13.3 million) investment to establish a new data center and enterprise cloud platform in Riyadh. The move marks a significant step in the company’s regional expansion strategy, aiming to capture a piece of Saudi Arabia’s rapidly growing digital infrastructure market.
Quick Facts
- Investment: SAR 50 million ($13.3 million)
- Location: Riyadh, Saudi Arabia
- Target Launch: Pilot operations begin February 2027
Building a Sustainable Digital Hub in Riyadh
The new facility, named Letsia HyperDC, is designed to support high-demand cloud computing and AI workloads for both government and private sector clients. The first phase will see a 56,000-square-foot facility built on an 86,000-square-foot site, initially housing between 100 and 150 IT racks.
Letsia is positioning the project as a sustainable data center, incorporating advanced cooling technologies to minimize water consumption, utilizing renewable energy sources, and employing environmentally friendly construction materials. The facility is engineered to achieve a Power Usage Effectiveness (PUE) rating of 1.4, a key metric for energy efficiency in data center operations.
Mohamed Rabie Moawad, Chairman of Letsia Holding, stated that the project is a “key milestone” in the company’s regional expansion.
He added that the new facility will provide advanced digital infrastructure to support innovation, accelerate digital transformation, and meet the region’s growing demand for technology services.
Tapping into Saudi Arabia’s High-Stakes Cloud Market
Letsia’s investment comes as Saudi Arabia’s data center market experiences explosive growth, driven by the digital economy goals of Saudi Vision 2030. The Kingdom has become a battleground for global tech giants, with Google, AWS, Microsoft, Oracle, and Huawei all investing heavily to build out cloud regions and data centers.
The competition is fierce. AWS alone has committed $5.3 billion to establish a new cloud region in the country. Meanwhile, local heavyweights are also making major moves. Earlier this year, Saudi Aramco signed a $371 million agreement with stc to develop high-performance computing infrastructure and partnered with Pasqal to launch the Kingdom’s first commercial quantum computer.
With development and technical preparations for Letsia HyperDC underway, the company is set to enter this competitive landscape when pilot operations commence in February 2027.
About Letsia
Letsia is a UAE-based technology conglomerate focused on developing digital infrastructure and enterprise cloud solutions. The company provides services including cloud computing, AI-powered workloads, and enterprise applications to government entities and businesses across the region.
Source: entarabi
