High-Return Digital Infrastructure, Investing in a 100MW Data Centre in Dammam

Across Saudi Arabia, rapid digital growth, cloud expansion, and national computing mandates are driving high demand for modern data centres. Securing suitable land, large-scale electrical grid power, and government permits in the region can take years. Because of this, ready-to-build and fully permitted data centre sites command a strong market premium.

HPC Consultancy Ltd and its strategic partners have structured a clear investment opportunity: the development, construction, and trade sale of a 100 Megawatt (MW) Tier III data centre campus in Dammam, Saudi Arabia.

By following a straightforward "build-and-sell" model, this project aims to secure necessary land and power rights, deliver top-tier facilities, and exit cleanly to global tech or infrastructure buyers within 24 to 30 months.

Executive Summary: A Clear Build-and-Sell Strategy

The project involves developing a 100MW data centre campus on industrial land in Dammam. Designed to host international cloud providers, telecoms companies, and regional enterprise clients, the campus will consist of five independent 20MW facilities. Each 20MW facility will sit on its own 100,000 square metre plot, ensuring ample space for high-density power and cooling infrastructure.

The Objective

Instead of holding and managing real estate for decades, the project is built around an efficient exit strategy. Once the land, grid power connections, government licenses, and building construction are complete, the entire campus will be sold to institutional infrastructure buyers or major tech firms looking for immediate capacity in Saudi Arabia.

Flexible Investment & Delivery Framework

The project is managed through a Special Purpose Vehicle (SPV) designed to offer total flexibility for incoming institutional capital. HPC Consultancy Ltd accommodates both single anchor funding and multi-investor syndicate models:

• 100% Single Investor Route: Designed for an anchor institutional Albania investor, private equity fund, or sovereign backer seeking full project control and equity ownership.

• Co-Investment & Syndicated Partnership Route: Designed for Albania investors looking to co-fund the capital expenditure alongside other institutional partners arranged and brought together by HPC Consultancy Ltd.

Regardless of the equity funding model chosen, project delivery is driven by three core leadership pillars:

• Real Estate & Local Regulatory Leadership:

  • Secures the long-term land leases (20 to 30 years) for each 100,000 sq. m plot in Dammam's industrial area.

  • Manages local government relationships, securing municipal approvals, the 100MW grid power supply from the Saudi Electricity Company (SEC), telecommunications licensing, Civil Defense permits, and environmental clearances.

  • Assists with local equity and debt financing through established regional networks.

• Strategic Planning & Investment Coordination:

  • Oversees the overall project roadmap, key milestones, and delivery timelines.

  • Facilitates capital structuring, investor syndication (where required), and debt-equity alignment.

  • Manages ongoing governance, reporting, and investor relations throughout the project lifecycle.

• Technical Architecture & Delivery Leadership (HPC Consultancy Ltd):

  • Provides complete engineering design, technical specifications, and Tier III certification for all five 20MW facilities.

  • Oversees physical construction, vendor onboarding, and equipment procurement for power, cooling, and safety hardware.

  • Prepares technical feasibility studies, CapEx models, and risk-mitigation frameworks to support investor due diligence.

Potential Buyers & Pre-Lease Partners

To de-risk the investment and maximize value before the final sale, the project targets three key customer and acquirer groups:

• Global Cloud Providers: Major cloud and technology companies (such as Microsoft Azure, Amazon Web Services, Google Cloud, Oracle Cloud, and Alibaba Cloud) frequently seek large, secure power allocations to expand regional cloud services and AI processing capacity.

• Telecom Companies & Digital Platforms: Regional operators (stc / Center3, Mobily, Zain KSA) and global data centre operators (Equinix, Digital Realty, Gulf Data Hub) require high-capacity spaces to connect submarine data cables and provide managed IT services.

• Large Enterprises & Government Entities: Driven by Saudi data protection laws, major regional corporations and public bodies (such as Saudi Aramco, SABIC, Al Rajhi Bank, Saudi National Bank, and national ministries) need highly secure, localized hosting for core data.

Regulatory Clearances & Approvals

To ensure a smooth transfer to an international buyer, the campus will follow a step-by-step regulatory roadmap:

• 1. Communications, Space and Technology Commission (CST): Registers the site as an official data centre provider, guaranteeing open network access for telecom carriers and full compliance with national data privacy standards.

• 2. Saudi Civil Defense Approval: Obtains safety permits for all architectural plans. Server halls will use waterless clean-gas fire suppression to protect sensitive IT equipment, alongside standard external fire alarms and safety barriers.

• 3. National Centre for Environmental Compliance (NCEC): Secures permits for backup generator fuel storage and approves water-efficient cooling systems that conserve local resources.

Capital Expenditure (CapEx) Budget

Developing a 100MW campus in Saudi Arabia requires an estimated investment of $8.5 million to $9.5 million USD per Megawatt, bringing the total budget to approximately $574 million USD.

• Site Preparation & Ground Leases: $6,000,000 USD (Lease deposits, clearing, leveling, security fencing, and drainage across all plots).

• Grid Power & Electrical Substation: $120,000,000 USD (High-voltage power connection directly from SEC, including an on-site substation).

• Building & Structural Construction: $190,000,000 USD (Civil works and physical building shells for all five 20MW modules).

• Cooling, Power Backup & Electrical Fit-Out: $195,000,000 USD (High-density cooling equipment, uninterruptible power supplies, generators, and internal distribution).

• Permits, Design & Legal Fees: $18,000,000 USD (Architectural designs, Tier III certifications, municipal fees, and legal counsel).

• Contingency Reserve: $45,000,000 USD (A buffer for potential supply chain changes or unexpected delays).

• TOTAL ESTIMATED BUDGET: $574,000,000 USD

Valuation & Investment Returns

Completed, permitted, and operational data centres in the region command high valuations because they allow buyers to skip years of development work.

• Total Investment: $574 Million USD (~$5.74M per MW).

• Target Market Resale Price: Fully permitted Tier III facilities in the region typically trade at $12.5 million to $14.0 million USD per Megawatt.

• Estimated Resale Value: $1.25 Billion to $1.40 Billion USD.

• Projected Net Return: Potential capital growth of $676 Million to $826 Million USD (offering a projected return of approximately 2.1x to 2.4x on invested capital).

30-Month Timeline to Sale

The project runs across four straightforward phases over 30 months:

• Months 1 to 6 (Site Control & Permits): Finalise ground leases (100,000 sq. m per 20MW building), secure the 100MW grid power agreement, complete preliminary designs, and obtain initial government permits.

• Months 7 to 18 (Civil Construction & Power Substation): Complete ground preparation, build the main electrical substation, and erect the five main building structures.

• Months 19 to 24 (Equipment Fit-Out & Testing): Install cooling systems, backup power, generators, and fiber lines, followed by full operational testing and Tier III verification.

• Months 24 to 30 (Trade Sale & Exit): Finalise sale agreements with target buyers, transfer asset ownership, and distribute returns to partners and investors.

Working with HPC Consultancy Ltd

This Dammam campus development gives international investors a clear entry point into Saudi Arabia’s expanding digital infrastructure market. Supported by HPC Consultancy Ltd’s technical leadership and flexible capital frameworks, the project offers a structured path from initial build to final trade sale.

• Company: HPC Consultancy Ltd

• Office: London, United Kingdom

• Website: www.hpccc.co.uk

To request investment documentation, discuss 100% equity funding or syndicated participation, or explore pre-lease options for the Dammam 100MW Data Centre Campus, please get in touch via our website portal.