Desert Technologies and Swiss CTS Group Establish “CTS-DT” to Develop AI Data Centers with an Initial Annual Capacity of 300 MW in Saudi Arabia
Desert Technologies (DT), a Saudi company specializing in clean energy and smart infrastructure, announced today the signing of a joint venture agreement with Swiss-based CTS Group, a global specialist in the design and development of high-performance data centers, to establish a new company, CTS-DT.
The new joint venture will focus on developing and manufacturing advanced data center solutions optimized for artificial intelligence (AI) applications, serving markets across Saudi Arabia, the Middle East, and Africa.
CTS-DT will initially target an annual production capacity of 300 megawatts (MW) in Saudi Arabia, with plans to progressively scale this capacity to 1.2 gigawatts (GW) per year. The initiative is designed to support the continued growth of the data center sector and address rising demand for AI-related computing capacity, while strengthening local content and transferring advanced technologies and expertise to the Saudi market.
The agreement was signed in Riyadh on the sidelines of the fifth edition of the global technology event LEAP 2026, held under the theme “Into New Worlds” at the Riyadh Exhibition and Convention Center in Malham. The event brings together technology and innovation leaders, investors, experts, startups, and companies from around the world.
The partnership forms part of Desert Technologies’ strategy to expand its presence in the digital infrastructure sector and leverage international expertise in data center development. It also supports the objectives of Saudi Vision 2030 to accelerate the growth of the digital economy, strengthen the Kingdom’s position as a regional hub for technology and AI, and localize technologies supporting future-focused industries.
The agreement was signed by Khalid Ahmed Sharbatly, Chief Executive Officer of Desert Technologies, and Philippe Schelfhout, Chief Executive Officer of CTS Group. The partnership aims to establish an advanced industrial and technology base for data centers in Saudi Arabia, with the Kingdom serving as a platform for expansion into regional markets.
Khalid Ahmed Sharbatly, CEO of Desert Technologies (DT), said: “This agreement represents an important step toward building an advanced digital infrastructure ecosystem in the Kingdom. Our ambition goes beyond meeting the growing demand for AI technologies; we aim to contribute to the development, localization, and export of the infrastructure that supports this sector.”
Sharbatly added: “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.”
He explained that the first phase of CTS-DT’s operations will focus on the design, development, and construction of large-scale data centers in Saudi Arabia, with an annual capacity of 300 MW, before progressively scaling to 1.2 GW per year and subsequently expanding into key markets across the Middle East and Africa.
The project will also contribute to developing national capabilities in engineering, manufacturing, and advanced technologies, while establishing digital infrastructure capable of supporting the rapidly growing demand for computing and data.
Sharbatly also highlighted the significance of LEAP 2026 being held in Riyadh, describing the event as a global platform that brings together technology, AI, investment, and innovation sectors and provides an effective environment for building partnerships and launching high-impact projects. He noted that signing the agreement on the sidelines of LEAP reflects the event’s role in transforming collaboration and investment opportunities into projects with tangible economic and developmental impact.
Philippe Schelfhout, CEO of CTS Group, said: “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.”
The partnership between DT and CTS supports Saudi Arabia’s drive to develop advanced digital infrastructure through the localization of modern technologies, the development of national capabilities in advanced manufacturing and engineering, and the creation of high-value opportunities.
It will also support the development of data center solutions characterized by reliability, flexibility, and energy efficiency, helping meet the rapidly accelerating demand generated by the digital economy and AI.
The initiative reflects Saudi Arabia’s ambition to strengthen its role in the global digital economy, supported by growing investment in technology and AI and an integrated ecosystem focused on attracting global companies, transferring knowledge, and localizing advanced technologies. These efforts align with the objectives of Saudi Vision 2030 to diversify the national economy and develop future-focused sectors with strong regional and global competitiveness.
About Desert Technologies (DT)
Desert Technologies is a Saudi company with a global presence, specializing in clean energy, smart infrastructure, and industrial technologies. The company has extensive experience in the manufacturing of photovoltaic (PV) solar energy systems, engineering, procurement and construction (EPC), and digital energy solutions, with projects delivered across more than 30 countries worldwide. Desert Technologies is committed to delivering innovative, high-quality, and sustainable technologies that contribute to the transformation of the energy sector locally and globally, while advancing sustainable development and the localization of advanced technologies worldwide.
For More Information, visit:
