Desert Technologies and Swiss CTS Group have established a joint venture to build specialized AI data centers in Saudi Arabia. The new entity, named CTS-DT, focuses on developing and manufacturing high-performance infrastructure tailored for artificial intelligence workloads across the Kingdom, the Middle East, and Africa.
According to a report by alsaudi.news, the project aims to localize the design, engineering, and manufacturing of specialized computing facilities. In addition, the initiative aligns with national programs to modernize digital infrastructure and increase industrial output within key technological sectors.
Expansion Plans for AI Data Centers
During its initial operational phase in Saudi Arabia, CTS-DT plans to deliver an annual capacity of 300 MW. The venture subsequently intends to scale this output to 1.2 GW per year. Consequently, this phased expansion will support rising demand for intensive computing workloads while transferring engineering expertise to the local workforce.
The partnership also plans to establish manufacturing units dedicated to producing modular electrical power units (e-pods), power distribution boards, and advanced containment piping systems. As a result, these components will supply regional projects and support export initiatives to international markets.
Partnership Agreement at LEAP 2026
The joint venture agreement was signed in Riyadh during the fifth edition of the global technology conference LEAP 2026, held at the Riyadh Exhibition and Conference Centre in Malham. The event convened global technology leaders, investors, and startups under the theme “Into New Worlds.”
Furthermore, Desert Technologies is expanding its operations into digital infrastructure to support Saudi Vision 2030. The strategy prioritizes the growth of the digital economy and strengthens the Kingdom’s position as a regional hub for advanced technology.
Executive Leadership and Future Outlook
The agreement was signed by Khaled Ahmed Sharbatly, Chief Executive Officer of Desert Technologies, and Philip Shelfhout, Chief Executive Officer of CTS Group. Both executives confirmed that the collaboration aims to establish an advanced industrial base for digital infrastructure in Riyadh.
“Our mission is clear: building the foundation of the artificial intelligence economy from the Kingdom to the world, ensuring Saudi Arabia is an active partner in exporting supporting infrastructure.”
Khaled Ahmed Sharbatly, CEO of Desert Technologies
Meanwhile, Philip Shelfhout stated that Saudi Arabia serves as a core pillar for the CTS Group expansion strategy. He noted that the venture will focus on developing energy-efficient AI data centers that provide high reliability for enterprise applications while protecting critical operational networks through rigorous cybersecurity standards.
Industrial Capabilities and Company Backgrounds
Desert Technologies operates in clean energy, smart infrastructure, and solar photovoltaic manufacturing, having completed projects across more than 30 countries. CTS Group, originally established in the Nordic region as CTS Nordics, operates across Europe, the Americas, and Asia with 32 strategic partners. Together, the two entities intend to deliver standardized, scalable infrastructure across the Middle East and African markets.
