Demand for dedicated AI data centers is expanding across the region as Saudi Arabia accelerates its digital infrastructure investments. Desert Technologies, a Saudi company specializing in clean energy and smart infrastructure, signed a joint venture agreement with Swiss-based CTS Group to establish CTS-DT during the LEAP 2026 conference in Riyadh.
The newly formed entity will focus on designing and manufacturing infrastructure solutions optimized for artificial intelligence applications. Operations will target markets across Saudi Arabia, the Middle East, and Africa, supporting the rapid expansion of high-performance computing.
Scaling AI Data Centers Capacity to 1.2 GW
CTS-DT will initially target an annual production capacity of 300 megawatts in Saudi Arabia. The joint venture plans to progressively scale this output to 1.2 gigawatts per year as facility deployment expands.
The initiative aims to address rising demand for computing capacity while strengthening local manufacturing and engineering capabilities. Moreover, the project will transfer advanced technical expertise directly into the domestic industrial sector.
Leadership Details and Strategic Objectives
The agreement was signed at the Riyadh Exhibition and Convention Center in Malham by Khalid Ahmed Sharbatly, Chief Executive Officer of Desert Technologies, and Philippe Schelfhout, Chief Executive Officer of CTS Group. Both executives confirmed that the venture supports Saudi Vision 2030 goals to diversify the national economy.
“Our mission is clear: to build the foundation of the AI economy from Saudi Arabia to the world, ensuring that the Kingdom is not simply a consumer of technology, but an active partner in developing and exporting the infrastructure that supports the growth of AI across the region and globally.”
Khalid Ahmed Sharbatly, CEO of Desert Technologies
“Saudi Arabia represents a key pillar of our growth strategy in the region. We are committed to working with Desert Technologies to develop advanced, energy-efficient data centers designed to meet the requirements of AI applications, enhancing performance, efficiency, and reliability across the Kingdom’s digital infrastructure.”
Philippe Schelfhout, CEO of CTS Group
Industrial Supply Chain and Engineering Capabilities
CTS Group brings specialized engineering expertise from its operations across Europe, India, Southeast Asia, and the Americas. The company utilizes standardized components, including electrical distribution boards, piping units, and containment solutions, to optimize delivery timelines.
Furthermore, these standardized modular components reduce on-site assembly work while maintaining operational reliability across complex telecom and digital networks. This structured manufacturing approach will serve as the technical foundation for CTS-DT facilities.
Regional Expansion and Future Outlook
The initial phase of CTS-DT will center on large-scale facilities within Saudi Arabia before entering neighboring markets. Consequently, the venture positions the Kingdom as an exporter of critical digital infrastructure for the broader Middle East and Africa.
By localizing energy-efficient designs, the partnership addresses the high electricity requirements of modern computing clusters. This expansion reflects broader national initiatives aimed at attracting international technology specialists to establish long-term manufacturing operations in the Kingdom.
