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Data center rules in Saudi Arabia

Checked against sources 2026-10-03 · 28 rules and proposals, each with a dated source

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 6

CST registration for data centre operatorsIn force

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.

Effective 2024-01-01 · Communications, Space and Technology Commission (CST)
New facilities must be carrier neutralIn force

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.

Effective 2024-01-01 · Communications, Space and Technology Commission (CST)
Cloud providers need a CST classIn force

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.

Communications, Space and Technology Commission (CST)
Municipal licence rules for data centresIn force

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.

Effective April 2026 · Ministry of Municipalities and Housing
Draft Global AI Hub LawProposed

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.

Communications, Space and Technology Commission (CST)
US chip licence for Humain onlyIn force

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.

Effective 2025-11-19 · US Department of Commerce, Bureau of Industry and Security

Power 5

Special power tariff for cloud computingIn force

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.

Effective March 2021 · Council of Ministers, Ministry of Energy
Standard business tariff bracketsIn force

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.

Saudi Electricity Regulatory Authority (SERA), Saudi Electricity Company
Heavy consumption tariff by grid connectionIn force

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.

Effective 2025-05-28 · Saudi Electricity Regulatory Authority (SERA)
Surcharge for non eligible heavy usersIn force

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.

Effective 2025-05-28 · Saudi Electricity Company, Saudi Electricity Regulatory Authority (SERA)
Large consumers can negotiate pricesIn force

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.

Saudi Electricity Regulatory Authority (SERA)

Incentives 5

Cloud Computing Special Economic ZoneIn force

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.

Effective 2023-04-13 · Communications, Space and Technology Commission (CST), Economic Cities and Special Zones Authority
Zone rules took effect April 2026In force

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.

Effective 2026-04-16 · Council of Ministers, Economic Cities and Special Zones Authority
Advertised 5 percent zone taxStatus unclear

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.

Dated 2023-04-13 · Economic Cities and Special Zones Authority
Riyadh logistics zone offers exemptionsIn force

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.

Effective 2022-10-31 · Ministry of Transport and Logistic Services
MODON leases land for data centresIn force

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.

Effective 2025-02-20 · Saudi Authority for Industrial Cities and Technology Zones (MODON)

Data rules 5

Personal data law fully enforcedIn force

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.

Effective 2024-09-14 · Saudi Data and AI Authority (SDAIA)
Rules for sending data abroadIn force

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.

Effective 2024-09-14 · Saudi Data and AI Authority (SDAIA)
Government data stays in the KingdomIn force

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.

Communications, Space and Technology Commission (CST), Saudi Central Bank
NCA cloud cybersecurity controlsIn force

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.

National Cybersecurity Authority (NCA)
Data controllers must registerIn force

Public bodies, firms whose main activity is processing personal data and firms handling sensitive data must register on the National Data Governance Platform.

Effective 2024-09-14 · Saudi Data and AI Authority (SDAIA)

Water and cooling 2

Cooling must meet set standardsIn force

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.

Effective April 2026 · Ministry of Municipalities and Housing
Business water tariff set in 2015Status unclear

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.

Dated 2015-12-16 · Ministry of Environment, Water and Agriculture

On the clock 5

Saudi Arabia lacks A:5 chip statusStatus unclear

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.

Dated 2026-07-14 · US Bureau of Industry and Security
Global AI Hub Law still pendingProposed

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.

Communications, Space and Technology Commission (CST)
Push for private AI data centre moneyStatus unclear

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.

Dated 2026-06-10 · Ministry of Investment (MISA), Ministry of Communications and Information Technology (MCIT)
Humain seeks outside investorsStatus unclear

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.

Dated 2026-09-09 · Humain
Surcharge rate under periodic reviewStatus unclear

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.

Dated 2025-05-28 · Saudi Electricity Company

Searched and not confirmed

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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Each rule is stated as its source states it, with the issuing body and the date it took effect or is expected. Statuses are In force, Proposed (a draft, consultation or announced plan with no legal effect yet), Paused, Ended and Status unclear. Rules change, so check the date beside each item and the source before relying on it. This page is not legal advice. Corrections go to [email protected]. Data is CC BY-NC 4.0.