Saudi Arabia Adopts Rules for Commercial Data Centers

Saudi Arabia has formally adopted municipal regulations governing commercial data centers, in a move announced by the Ministry of Municipal and Rural Affairs and Housing in early September 2026. The new rules apply to standalone commercial data centers located both inside and outside urban boundaries across the Kingdom.

The regulations set out clear siting requirements, giving priority to locations that offer easy access for operation and maintenance teams and availability of basic services such as electricity, telecommunications, and transport. Facilities must also comply with municipal rules covering parking, setbacks, heights, landscaping, and building systems.

On the technical side, commercial data centers are required to comply with the Saudi Building Code, including standards for structural design, fire protection, cooling, electrical power, and backup systems. Design and construction supervision must be carried out through accredited engineering offices.

How licensing works

Municipal licensing for data centers falls under the municipal licensing system and its executive regulations, following the same general framework for issuance, renewal, amendment, suspension, and cancellation used for other commercial activities. Before a license is issued, operators need Civil Defense approval, a valid commercial registration that includes the data center activity, and approval from the relevant sector supervisory authority such as the communications regulator.

Each facility must also be registered with the national communications regulator as a data center service provider, with a separate registration for each site based on its classification and development stage, under the Data Center Services Regulations that took effect on 1 January 2024.

The investor journey is handled through the Balady platform, which manages building and municipal approvals. Typical steps include entering the establishment record and specifying the activity and area, selecting the location and premises details, uploading documents such as lease or ownership papers, building permits, and safety documents, paying municipal fees, and tracking applications through the "My Licenses" section.

The framework gives investors and operators a clearer, more consistent path to setting up data infrastructure in the Kingdom, supporting the wider growth of digital services for residents and businesses alike.

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