Quantum Switch Tamasuk Secures Funding for Dammam Data Center in Saudi Arabia
Quantum Switch Tamasuk (QST), a joint venture between Tamasuk and Quantum Switch, has announced full funding for its first hyperscale Dammam data center in King Salman Energy Park (SPARK), Saudi Arabia. This data center will primarily support a new cloud region, enabling companies and organizations in Saudi Arabia to enhance their digitalization efforts with higher quality and more reliable digital services. The cloud services sector in Saudi Arabia is projected to reach US$10 billion by 2030.
Innovative Financing for Data Center Development
The Dammam data center project has secured innovative financing structured and fully underwritten by Natixis Corporate & Investment Banking (Natixis CIB). Natixis CIB has syndicated part of the loan to Allianz Trade and Riyad Bank. This financing arrangement is designed to accommodate future data centers, providing QST with a reliable source of capital to fund its anticipated growth in the region. QST’s pipeline of projects is expected to require up to US$3 billion in capital over the next 4-5 years.
Construction Progress and Future Plans
QST’s Dammam data center is in the advanced stages of construction and is expected to be operational in Q4 2022. The company has also started work on a second data center in Dammam, scheduled for completion in Q2 2023.
Quotes from Key Stakeholders
Matthew Nathan, CEO of Tamasuk:
“This transaction stands out for its innovative structure and is a strong testament to the banking sector’s appetite for growth in the digital infrastructure space in Saudi Arabia, as well as their confidence in QST as a data center developer for international hyperscaler customers in the region. I am extremely grateful to the Natixis CIB team in the Middle East and their senior leadership for their belief and trust in QST”.
Bénédicte De Giafferri, Global Head of Real Assets Finance at Natixis CIB:
“We are delighted to have led and distributed the project financing for QST. It represents our first data center financing in the region, a sector in which Natixis CIB has deep experience globally. The portfolio financing structure was a perfect fit for our client’s development pipeline, and we are excited to support QST’s capital requirements in a space where we see tremendous growth potential. We are especially proud to have sourced institutional investor financing; this area of liquidity is particularly important to us and offers both sustainability and continuity to future funding requirements for our clients”.
Tim Bawtree, CEO of Quantum Switch:
“Quantum Switch exists to blend the best in data center design, technology, building and operations with innovative financial models and partnerships that allow us to bring new capacity on stream for our clients in new and emerging cloud regions at high speed. The SPARK facilities are proof of this concept in action”
