Switzerland-based CTS Group, a specialist in the design and development of data centres, has announced that it has joined hands with Saudi clean energy and smart infrastructure company Desert Technologies to set up CTS-DT, a new company focused on developing advanced AI data center infrastructure in Saudi Arabia.
The new joint venture will initially target an annual capacity of 300 MW in Saudi Arabia, and gradually scale it up to 1.2 GW per year.
The initiative will focus on the design, development, construction, and manufacturing of advanced data centre solutions optimised for artificial intelligence and high-performance computing applications, said the statement.
The agreement was signed by Khalid Ahmed Sharbatly, the CEO of Desert Technologies, and Philippe Schelfhout, Chief Executive Officer of CTS Group.in Riyadh on the sidelines of LEAP 2026, the global technology and innovation event being held at the Riyadh Exhibition and Convention Center in Malham under the theme “Into New Worlds.”
Under the partnership, CTS-DT will establish an advanced industrial and technology platform in Saudi Arabia to serve the kingdom’s rapidly growing demand for AI computing and digital infrastructure. The company also plans to use Saudi Arabia as a base for expansion into Middle Eastern and African markets.
The initial scope of CTS-DT will include the design, development, and construction of large-scale AI data centers, supported by advanced manufacturing and engineering capabilities. The solutions will be designed to deliver high levels of performance, reliability, flexibility, and energy efficiency to meet the demanding requirements of AI applications.
The partnership is also expected to contribute to the localization of data center technologies and advanced manufacturing capabilities in Saudi Arabia, while developing national expertise in engineering, manufacturing, and other technologies supporting the digital economy.
Sharbatly said the partnership aims to go beyond meeting domestic demand for AI infrastructure by contributing to the development, localization, and export of the infrastructure required to support the growth of artificial intelligence across the region and globally.
It forms part of the company's strategy to expand into the digital infrastructure sector and leverage CTS Group’s international expertise in data center development. It also supports Saudi Arabia’s efforts under Saudi Vision 2030 to accelerate the digital economy, attract global technology investments, localize advanced technologies, and establish the Kingdom as a regional hub for AI and technology.
Schelfhout said Saudi Arabia represents a key pillar of the company’s regional growth strategy.
CTS Group will work with Desert Technologies to develop advanced and energy-efficient data centers designed specifically to meet the requirements of AI applications, he added.-TradeArabia News Service
