Egyptian-Indian Consortium Wins $200 Million AI Data Center Contract in Riyadh

A consortium comprising Egyptian firm Hassan Allam Construction and India's Sterling & Wilson has won the contract for the first phase of building an artificial intelligence data center in Riyadh for Humain and Center3, valued at approximately 750 million riyals (around $200 million).

The first phase covers an IT capacity of 16.2 megawatts to be executed over 16 months, with the second phase expanding the site to 50 megawatts as part of a broader program targeting one gigawatt, according to Construction Review Online.

The contract comes at a time when Saudi Arabia is racing to build massive AI infrastructure, as smart models and services require large data centers that consume vast amounts of electricity and cooling.

The consortium's win means that an Egyptian construction company is participating in one of the region's largest data center programs, reflecting a shift in regional demand toward digital infrastructure. Arab contractors are benefiting from this type of project that combines construction expertise with modern technology.

What do these terms mean?

Data Center: A building housing thousands of computing devices and servers that power internet and AI services, requiring high-intensity electricity and cooling.

Megawatt: A unit of electrical power measurement equal to one thousand kilowatts, used to measure the amount of energy consumed by a data center.

IT Load: The amount of power actually allocated to computing equipment inside the center, separate from energy used for cooling and lighting.

Gigawatt: One thousand megawatts, used to describe massive power generation or consumption programs.