The CTS-DT data center project marks a major step toward expanding AI infrastructure capacity in Saudi Arabia. Desert Technologies and Swiss-based CTS Group have launched the venture to serve rising demand for advanced computing infrastructure. Moreover, the initiative targets an initial annual capacity of 300MW, with plans to reach 1.2GW annually.
The companies established CTS-DT through a joint venture agreement signed in Riyadh. The venture will focus on AI-focused data center solutions for Saudi Arabia and regional markets.
Furthermore, the announcement comes as Saudi Arabia accelerates investment in artificial intelligence and digital infrastructure. The Kingdom increasingly seeks large-scale computing capacity to support its digital economy.
CTS-DT Data Center Project Targets 300MW Capacity
The CTS-DT data center project involves plans for large-scale AI data center development across Saudi Arabia. CTS-DT will initially target 300MW of annual capacity for its operations. However, the venture plans to progressively increase that figure to 1.2GW annually. Consequently, that expansion would quadruple the initial annual capacity target.
Importantly, the 300MW figure refers to annual capacity for the venture. It does not describe the power capacity of a single data center. On the other hand, the initial scope covers design, development, construction, and manufacturing of advanced data center solutions. The facilities will support artificial intelligence and high-performance computing applications.
The partners will also pursue infrastructure designed around performance, reliability, flexibility, and energy efficiency. These requirements reflect the intensive computing demands associated with modern AI workloads. CTS Group brings dedicated data center design and construction expertise to the venture. Its capabilities cover architectural, structural, mechanical, and electrical engineering. The company also handles prefabrication and manufacturing for data center infrastructure. Its production activities include electrical pods, switchboards, containment, and major piping installations.
Saudi Arabia’s expanding data center pipeline also includes a separate $2 billion carrier-neutral development. That project targets campuses across Riyadh, Jeddah, and Dammam, supporting AI and cloud computing demand.
CTS-DT Data Center Project Expands Saudi AI Infrastructure
The CTS-DT data center project will support Saudi Arabia’s broader push for localized digital infrastructure. The venture will develop capabilities in engineering, manufacturing, and advanced data center technologies. Additionally, CTS-DT intends to use Saudi Arabia as a base for regional expansion. Its target markets include countries across the Middle East and Africa.
Desert Technologies already operates across renewable energy and smart infrastructure. Its portfolio also includes modular data center technology and digital energy solutions. Therefore, the partnership combines Desert Technologies’ infrastructure capabilities with CTS Group’s data center specialization. The arrangement could strengthen integration between digital infrastructure and energy systems.
CTS Group also develops onsite power generation, substations, solar, wind, and battery storage solutions. Those capabilities can support resilient energy infrastructure for data center facilities. Meanwhile, the partnership supports technology transfer and national capability development. It could create opportunities across engineering, manufacturing, construction, and related technical fields.
The agreement was signed during LEAP 2026 in Riyadh. LEAP 2026 runs from August 31 to September 3 at the Riyadh Exhibition and Convention Center.
The venture aligns with Saudi Vision 2030’s objectives for digital economy development. It also supports efforts to localize advanced technologies and attract global technology investment.
As a result, CTS-DT could become an important contributor to Saudi Arabia’s expanding data center construction pipeline. The planned 1.2GW annual capacity would significantly expand the venture’s initial scale.
Project Fact Sheet
Name: CTS-DT Data Center Project
Type: AI data center development and infrastructure manufacturing venture
Location: Saudi Arabia
Initial annual capacity: 300MW
Planned annual capacity: 1.2GW
Capacity expansion: Four times the initial annual target
Primary application: Artificial intelligence and high-performance computing
Development scope: Design, development, construction, and manufacturing
Infrastructure focus: Large-scale AI data centers
Technology focus: Advanced AI-optimized data center solutions
Performance requirements: Performance, reliability, flexibility, and energy efficiency
Manufacturing focus: Advanced data center components and systems
Localization focus: Saudi engineering and manufacturing capabilities
Technology transfer: Advanced international data center expertise
Initial market: Saudi Arabia
Regional expansion: Middle East and Africa
Strategic framework: Saudi Vision 2030
Agreement status: Joint venture agreement signed
Agreement location: Riyadh, Saudi Arabia
Signing event: LEAP 2026
LEAP venue: Riyadh Exhibition and Convention Center, Malham
Initial development phase: Large-scale AI data centers in Saudi Arabia
Construction status: Venture launched; specific construction schedules remain unannounced
Expansion objective: 1.2GW annual capacity
Project Team
Joint venture partners: Desert Technologies and CTS Group.
Joint venture Company: CTS-DT.
Data center design: CTS Group.
Developer: CTS-DT.
Data center engineering: CTS Group.
Construction of data center: CTS-DT.
Advanced manufacturing: CTS-DT.
Local infrastructure capabilities: Desert Technologies.
Digital infrastructure expertise: CTS Group.
Energy infrastructure capabilities: Desert Technologies and CTS Group.
Regional expansion: CTS-DT.
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