en.Wedoany.com Reported - Middle Eastern technology group Letsia has announced an investment of 50 million Saudi Riyals (approximately $13.32 million) to build a green data center named Letsia HyperDC in Riyadh. The project supports Saudi Arabia's goal of becoming a regional hub for digital infrastructure, cloud computing, and artificial intelligence services.
Letsia HyperDC is a key initiative in the company's long-term expansion strategy, aimed at addressing the rapidly growing demand for digital services, hyperscale infrastructure, and cloud applications among Saudi enterprises. This investment is part of Letsia's strategic growth blueprint, intended to strengthen local operations and expand into international markets. The company first disclosed the HyperDC project in May 2026 and is now implementing it with a clear investment and construction timeline. The facility is expected to enter pilot operations in February 2027, providing initial services before full commercial operations commence.
The data center is located on an 8,000-square-meter plot in Riyadh, with a Phase I building area of approximately 5,200 square meters. Designed to meet Tier III standards, it offers high redundancy, reliability, and operational availability for enterprise clients, cloud service providers, financial institutions, and government agencies. Tier III certification typically ensures concurrently maintainable infrastructure with an uptime availability of approximately 99.982%. Letsia states that the facility is designed with sustainability at its core, aiming to maintain a Power Usage Effectiveness (PUE) below 1.4, reflecting a focus on energy efficiency and environmentally responsible operations. Currently, the company has not disclosed key technical parameters such as planned IT load capacity, total power capacity, cooling technology, renewable energy integration, and backup power infrastructure.
Mohamed Rabie Moawad, Founder and Chairman of Letsia, stated that the project marks a strategic shift for the company from building foundational capabilities to expanding operational scale and strengthening its regional technological position. The HyperDC facility will support a wide range of digital infrastructure needs, including cloud computing services, enterprise hosting, managed IT services, high-performance computing (HPC), AI applications, and digital transformation initiatives for both the public and private sectors. The project complements the company's existing AI business through Letsia AI, combining AI software capabilities with dedicated digital infrastructure.
The data center industry in Saudi Arabia is experiencing rapid growth, driven by factors such as accelerated cloud adoption, faster enterprise digital transformation, rising AI computing demand, and government data sovereignty initiatives. According to Mordor Intelligence, the Saudi data center market is expected to grow from $2.38 billion in 2026 to approximately $4.35 billion by 2031, at a compound annual growth rate (CAGR) of 12.84%. The Letsia HyperDC project aligns with Saudi Arabia's Vision 2030 and the Saudi Green Initiative's goals of sustainability and economic diversification, which emphasize the development of environmentally sustainable digital infrastructure. A report from ResearchAndMarkets.com indicates that the Middle East and Africa green data center market is expected to expand at a CAGR of 31.81%, reflecting the region's accelerating adoption of energy-efficient facilities and renewable energy integration solutions.
