QST weighs sale of Saudi data center unit for 500 million
QST is considering a sale of its Saudi data center business for over 500 million dollars. The move comes as global firms seek to enter the Gulf AI market.
Data-center provider Quantum Switch Tamasuk (QST) is exploring strategic alternatives for its operations in Saudi Arabia, including a potential sale. The move comes as the Gulf region experiences a significant surge in artificial intelligence and digital infrastructure investment. QST was established as a joint venture between Saudi infrastructure developer Tamasuk and United Kingdom-based Quantum Switch. The company has reportedly engaged Rothschild to advise on the process, with sources indicating that a transaction could value the Saudi business at more than $500 million. While deliberations remain in the early stages, the company has not yet finalized a decision regarding a sale or other strategic options.
The company’s current footprint includes two data centers located in Dammam. Each facility possesses a capacity of 9 megawatts, which is sufficient to power approximately 9,000 homes depending on local energy efficiency and power sources. These assets are expected to draw interest from global private equity firms looking to capitalize on the regional demand for data processing and storage. Nations across the Middle East are committing billions to establish themselves as global AI hubs. By leveraging abundant land and competitive energy costs, they aim to attract major technology hyperscalers such as Alphabet Inc., Microsoft Corporation, and Meta Platforms, Inc.. This strategy is part of a broader effort to diversify economies away from traditional hydrocarbon revenues.
