Saudi Arabia Sets New Rules for Data Centers

Saudi Arabia has approved new municipal regulations governing commercial data centers, in a move aimed at supporting the growth of the Kingdom's digital infrastructure. The rules were issued by the Ministry of Municipal, Rural Affairs and Housing in early September 2026 and took effect from the date of publication.

The regulations apply to standalone commercial data centers located inside or outside urban boundaries, provided the sites offer easy access for operations and maintenance teams and have available electricity, telecommunications, and transport infrastructure. Facilities must comply with the Saudi Building Code, including requirements for building structure, fire protection, cooling systems, electrical power and backup systems, parking, setbacks, heights, and landscaping.

Design and construction supervision must be handled by accredited engineering offices, following local and international standards for construction, fire safety, cooling, and power systems to ensure reliability and continuity of operations. Municipal licensing is governed by the Municipal Licensing Procedures Law and its executive regulations.

Licensing requirements

Before a license is issued, projects must obtain prior Civil Defense approval, hold a valid commercial registration (CR) that includes the specific data center activity, and secure approval from the sector regulator supervising the activity — such as the communications regulator for data center services.

Investors are required to use the Balady digital municipal platform to check requirements for the "data centers" activity, appoint an approved engineering office, submit designs for building permits, and apply for and manage municipal licenses. The typical project path moves from land-use confirmation and municipal planning compliance, to a building permit through Balady, then Civil Defense design and safety approvals, followed by construction under accredited supervision in line with the Saudi Building Code.

The framework offers investors and businesses a clearer, more predictable route to establishing data centers, reinforcing the Kingdom's push to expand its digital economy and attract technology investment.

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