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Data Centres: Boom and Backlash
14AUG

solutions wins SAR 364m Dammam build

1 min read
10:48UTC

Saudi Telecom subsidiary solutions disclosed a SAR 364m contract with Center3 to build data-centre facility DDC307 in Dammam, an 18-month build booked as a related-party transaction.

IndustryDeveloping
Key takeaway

Saudi Telecom's two subsidiaries booked a SAR 364m internal contract to build DDC307 in Dammam.

Saudi Telecom subsidiary solutions disclosed on 4 August that it signed a SAR 364m contract (roughly $97m) on 3 August with Center3 to build data-centre facility DDC307 in Dammam, an 18-month build booked as a related-party transaction 1.

Center3 is Saudi Telecom's data-centre and connectivity arm and solutions is its systems-integration arm, so the group is paying itself to build its own capacity, and Saudi disclosure rules require that to be flagged to the market. Revenue booked this way tells a reader about the group's internal build programme rather than about demand from third parties.

Dammam sits on the Gulf coast in the Eastern Province, next to the oil infrastructure and the subsea cable landings, which is where Saudi compute capacity has been concentrating. An 18-month schedule puts DDC307 in service during 2028. Capacity keeps pooling in a few dominant hubs, as the west European split we last measured showed , and a national operator building for its own account pulls in the opposite direction.

Deep Analysis

In plain English

solutions, a subsidiary of Saudi Telecom Company, signed a contract on 3 August worth SAR 364m (about $97m) to build a data centre called DDC307 in Dammam, Saudi Arabia. The customer, Center3, is also owned by Saudi Telecom Company, so the deal is effectively one arm of the same corporate group paying another to build the facility, an 18-month project covering everything from engineering to testing.

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