QST weighs a more than $500m sale of its Saudi data center business as Gulf nations ramp up AI infrastructure investment and attract global private equity interest.
Data centre operator Quantum Switch Tamasuk (QST) is exploring strategic options for its Saudi Arabian business, including a potential sale, according to four sources familiar with the matter.
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The move could attract renewed interest from global private equity firms looking to expand their footprint in the Gulf’s fast-growing artificial intelligence and digital infrastructure market.
QST was established as a joint venture between Saudi infrastructure developer Tamasuk and UK-based data centre operator Quantum Switch. The company operates projects in Saudi Arabia and has additional developments planned.
The company has appointed Rothschild & Co to advise on potential strategic transactions, the sources said. Discussions remain at an early stage, and no final decision has been made on whether QST will proceed with a sale or pursue alternative options.
One source said a deal could value the Saudi business at significantly more than $500 million, though no formal process has been announced.
QST, Tamasuk and Quantum Switch did not respond to requests for comment. Rothschild declined to comment.
QST operates two data centres in Dammam in eastern Saudi Arabia. Each facility has a capacity of 9 megawatts (MW), bringing total operational capacity to 18MW. A single 9MW facility can power thousands of homes, depending on energy efficiency and local grid factors.
Sources said several global private equity firms active in the region have expressed interest in the assets. Saudi Arabia and other Gulf states are investing heavily in data centre infrastructure as part of broader economic diversification strategies aimed at reducing reliance on hydrocarbons.
Governments in the region are positioning themselves as global AI hubs, leveraging access to land and relatively low-cost energy to attract hyperscale cloud providers such as Google, Microsoft and Meta Platforms.
However, challenges remain, including the development of data governance frameworks, access to advanced semiconductor chips, and competition for top-tier AI talent. International investors have increasingly targeted Gulf data centre assets, particularly in the UAE.
Last year, KKR acquired a minority stake in Dubai-based Gulf Data Hub, while Silver Lake invested in Khazna Data Center Holding, which is developing a large-scale data center campus in Abu Dhabi.
A potential QST transaction would further underscore the growing global appetite for Gulf-based digital infrastructure as AI demand accelerates.
Why QST Matters to MENA
This potential sale signals more than a corporate reshuffle; it reflects a structural shift in the region’s digital economy.
Data centers are no longer passive infrastructure. In the AI era, they are critical national assets that power cloud computing, generative AI, and hyperscale expansion. A $500m+ valuation highlights how strategic these assets have become.
