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30 Sep 2025

Stc, Solutions Sign $62M Deal to Expand Data Centres Across Saudi Arabia

30 Sep 2025  by capacitymedia   
Arabian Internet and Communications Services Company (Solutions) has signed a contract worth SAR 313.39 million (approximately $62 million) with Saudi Telecom Company (stc) to strengthen and expand network infrastructure for its business units.

According to the official filing, the agreement spans 36 months and includes several key upgrades. Solutions will work on enhancing internal and international networks, replacing outdated equipment, and supporting the growth of 5G services. The contract also covers network expansion, virtual broadband upgrades, and the construction of new data centre infrastructure across multiple cities including Khamis Mushait, Dammam, Qassim and north Riyadh.

In addition to expansion, the deal specifies the supply, installation and testing of all related systems and equipment. The company stated that the financial impact of the project will be reflected in its results starting from the first quarter of 2026.

The signing of this agreement is part of Solutions’ ongoing strategy to modernise telecommunications infrastructure in line with increasing demand for digital services. The company recently launched its Business-Critical Network, a wireless communications system designed to meet the requirements of vital industries in Saudi Arabia such as government, healthcare, and oil and gas.

By upgrading its infrastructure, Solutions aims to improve connectivity and ensure reliable service delivery to both domestic and international clients. The company highlighted that network capacity enhancements and new data centre development will play an important role in supporting the digital transformation initiatives across the Kingdom.

The collaboration with stc is viewed as a step toward strengthening Saudi Arabia’s telecommunications sector and creating opportunities for wider 5G adoption. The focus on replacing obsolete systems with modern equipment is also expected to enhance service resilience and efficiency.

With work set to continue over three years, the partnership demonstrates a shared commitment between Solutions and stc to advancing the Kingdom’s digital infrastructure. Solutions emphasised that these investments will not only benefit its business operations but also provide broader support to sectors requiring high-performance and secure communications systems.

Overall, the SAR 313.39 million deal is expected to make a significant contribution to the expansion and reliability of Saudi Arabia’s telecom networks, reinforcing Solutions’ role as a key provider in the region’s rapidly evolving digital landscape.

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