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Data Center SAN Storage Manufacturing in Saudi Arabia

Opportunity overview

Establish a facility to manufacture Storage Area Network (SAN) storage devices in Saudi Arabia, addressing the growing demand for data center infrastructure as the country pushes toward digitization and data enablement. 

Storage Area Network (SAN) is a network of data storage devices used to provide a pool of shared storage that can be accessed by multiple servers.

Key details

Investment Size :
SAR 94 million
Capacity :
26,000 units annually
Profitability :
  • Internal Rate of Return (IRR): 10-20%
  • Payback Period: 4 years
Impact :
  • Job Creation: 25–30 direct positions
  • GDP Contribution: SAR 192 million

Market Drivers

  • Expanding demand for data storage fueled by digitization, cloud adoption, and data hub development.
  • Consolidation of data centers under the National Information Center, increasing demand for infrastructure and hardware.
  • The Saudi ICT market is set to grow rapidly, driven by the government’s SAR 75 billion AI and data initiatives.

Value Proposition

  • SAN storage supports localization of data center infrastructure, enhancing data security and sovereignty.
  • Data center hardware, particularly storage solutions, is the fastest-growing sub-sector within hardware markets.

Why Invest in Saudi Arabia ?

  • Government-led incentives, including subsidized land and salary support through HRDF.
  • Support from the Ministry of Communications and Information Technology (MCIT) and MODON for administrative and financial facilitation.
  • Strategic focus on expanding data center capacity from 60MW to 360MW under MCIT’s SAR 18 billion data center strategy.
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