Saudi Arabia requires data centre operators to register with the telecom and technology regulator CST since 1 January 2024, and cloud providers need a CST class that decides which data they may host. Licensed cloud computing gets a flat power tariff of 18 halalas per kWh, and government data must stay in the Kingdom. Advanced US chips arrive only through case by case licences such as Humain's November 2025 approval, because Saudi Arabia has no A:5 status.
The US export control position for advanced AI chips in Saudi Arabia, as of 19 November 2025, is recorded as “Case-by-case authorisation only”.
Approvals and licensing · Power · Incentives · Data rules · Water and cooling · On the clock · 17 projects in Saudi Arabia
Data centre service providers that rent out space, power and cooling must register with the Communications, Space and Technology Commission (CST). Its Data Centre Services Regulations took effect on 1 January 2024.
New registered data centres must be Tier II or Tier III and carrier neutral, meaning any telecom network may connect. Tier I registration is limited to existing sites. A registration lasts three years and requires an energy management and sustainability plan.
Cloud service providers must register with CST and receive Class A, B or C. The class sets which data classifications and sectors a provider may serve. Oracle reported in December 2023 that Class C requires hosting in a Tier 3 or higher data centre.
The Ministry of Municipalities and Housing set unified rules for standalone commercial data centres inside and outside city limits. Operators need Civil Defense approval, a commercial registration covering the activity and approval from the sector supervisor. Buildings must follow the Saudi Building Code.
CST published a draft law in April 2025 for hubs that host foreign data. It proposes private hubs for foreign governments with diplomatic protections, plus extended and virtual hubs where a foreign country's law can govern the data. Public comment closed on 14 May 2025.
On 19 November 2025 the US Commerce Department authorised Humain to buy about 35,000 Nvidia GB300 chips. The approval is a case by case licence with security and reporting conditions monitored by the Bureau of Industry and Security. Saudi Arabia has no country level US framework for advanced chips.
The Cabinet approved a power tariff of 0.18 riyals per kilowatt hour (kWh) for cloud computing companies licensed by the telecom regulator in March 2021. The Saudi Electricity Company tariff table still lists Cloud Computing at a flat 18 halalas per kWh. A halala is one hundredth of a riyal.
Commercial users pay 22 halalas per kWh for the first 6,000 kWh a month and 32 halalas above that. Industrial users pay a flat 20 halalas per kWh. Government users pay 32 halalas per kWh.
Eligible industrial, commercial and farm users where power is 20 percent or more of operating cost pay 18 halalas per kWh on the distribution network and 12 on the transmission network. Users where power is 10 to 19.9 percent of cost pay 24 and 18. The rate cannot exceed the user's normal category rate.
From 28 May 2025 industrial, commercial and farm users that do not qualify for the heavy consumption tariff pay an extra 2 halalas per kWh. The Saudi Electricity Company said this rate will be updated from time to time.
The Electricity Law defines a Large Consumer as one whose use exceeds a limit set by the regulator. Article 12 lets a licensed power company agree prices with a Large Consumer that differ from the approved tariff.
The Crown Prince launched a Cloud Computing Special Economic Zone on 13 April 2023. CST regulates it with the Economic Cities and Special Zones Authority. It targets cloud providers and firms in AI and other advanced technology.
The Cabinet approved regulatory frameworks for four zones including the Cloud Computing zone in January 2026. They took effect on 16 April 2026. Cloud zone companies may build data centres anywhere in the Kingdom if their headquarters is in Riyadh.
At launch the zones were promoted with 5 percent corporate income tax for up to 20 years, zero withholding tax on profits sent abroad and zero customs duty on capital equipment. The 2026 zone frameworks refer back to the Tax Law and its incentives without stating a flat rate.
The Special Integrated Logistics Zone at King Khalid International Airport opened in October 2022 with exemptions from certain taxes and labour rules. Its launch named technology, communications, aviation and pharmaceuticals as focus industries. Data centres were not named.
The industrial cities authority MODON signed a land lease agreement with DataVolt in February 2025 for a 55,000 square metre data centre site. The site is in the First Technology Park in east Riyadh.
The Personal Data Protection Law took effect on 14 September 2023 with a one year grace period. Full compliance became mandatory on 14 September 2024. It also covers foreign firms that process data of Saudi residents.
An amended regulation on transferring personal data outside the Kingdom took effect on 14 September 2024. Firms may rely on standard contract clauses, binding group rules or an accreditation certificate. A risk assessment is required in some cases including sensitive data.
Government agency data must remain inside Saudi Arabia with only narrow exceptions set by law. Offshore hosting of financial institution data needs prior approval from the Saudi Central Bank.
The National Cybersecurity Authority sets Cloud Cybersecurity Controls in a second edition dated 2024 for cloud providers and their customers. The controls extend its Essential Cybersecurity Controls and were updated to reflect data localisation requirements. The NCA page was last updated on 24 June 2026.
Public bodies, firms whose main activity is processing personal data and firms handling sensitive data must register on the National Data Governance Platform.
The 2026 municipal rules require commercial data centres to meet local and international standards for cooling systems, fire protection, power and backup. No water use limit for data centres was found.
From 16 December 2015 government bodies and large businesses paid 9 riyals per cubic metre for water and sanitation and 6 riyals for water only. No newer official rate for data centres was confirmed.
On 14 July 2026 the US moved the UAE into Country Group A:5, which lets named users buy advanced chips without a licence. Saudi Arabia received no such rule. Fortune reported on 9 September 2026 that the Kingdom still lacks the designation.
No final approval of the Global AI Hub Law was found after public comment closed on 14 May 2025. The consultation text says the law would take effect 60 days after publication in the official gazette.
The investment and communications ministries held a workshop on 10 June 2026 with banks, investors, Humain and the AI Enablement Office. It discussed ways to raise private sector funding for AI data centres.
Fortune reported on 9 September 2026 that Humain is seeking outside investment as the state limits spending. An expert quoted linked this to a possible US arrangement similar to the one G42 obtained.
The Saudi Electricity Company said the surcharge on users outside the heavy consumption tariff will be updated periodically. Data centre operators should watch for revised rates.
What this research looked for and could not confirm from a primary or credible source. Listed so the gaps are visible.
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