Earlier in 2025, Emirates Telecommunications Group Co. sold its 40% stake in Khazna for $2.2 billion to Silver Lake and MGX, an Emirati state-owned investment firm. This investment has fueled Khazna’s growth, including the addition of two new facilities in the UAE this month. Alnaqbi stated: “Khazna has been growing tenfold in recent years and has now set its sights on the Saudi market.” The expansion aligns with Saudi Arabia’s significant $21 billion investment in data centers pledged in February 2025.
Saudi Arabia’s requirement to store data within its borders has driven demand for local data centers, attracting global companies and encouraging international brands to establish a digital presence. The market is increasingly attractive, with competitors like Equinix, DataVolt, and Alfanar also planning expansions. Major cloud providers, including AWS and Microsoft, are preparing to launch dedicated cloud regions in the Kingdom by 2026. Alnaqbi noted: “None of them have the experience to handle the hyperscalers, in terms of design, delivery, and operation.”
Khazna’s experience in the UAE, where it navigates U.S. chip export restrictions, prepares it for similar challenges in Saudi Arabia. These restrictions limit high-power hardware sales to certain countries to prevent transfers to nations like China, North Korea, and Russia. An official from G42, Khazna’s parent company backed by Microsoft, expressed optimism about potential adjustments to these rules for the UAE, according to Bloomberg.
Khazna’s strategic move into Saudi Arabia reflects its ambition to capitalize on the region’s growing digital infrastructure needs. By leveraging its expertise in designing and operating data centers for large-scale clients, the company aims to establish a strong foothold in the Kingdom. This expansion is expected to create jobs, enhance technological capabilities, and support Saudi Arabia’s digital economy, contributing to regional economic growth and innovation.
