2023-01-02 - The Communications, Space, and Technology Commission (CST) of Saudi Arabia has announced that the “Data Centre Services Regulations” document has come into force on January 1, 2024. This move is part of the CST’s broader strategy to drive digital transformation across various sectors within the Kingdom.
The primary objective of these regulations is to cultivate an environment conducive to the anticipated growth in the data centre sector. It also aims to foster the development of the Kingdom’s IT infrastructure, promoting digital transformation, and creating an attractive environment for technology investments, including attracting multinational companies. The document seeks to stimulate investments in data centres, ensure fair competition, and optimise the use of information technology infrastructure. Notably, it also emphasises the importance of promoting advanced and environmentally friendly data centres.
CST officials underscored the expected benefits, including elevated service quality, enhanced user protection, and increased appeal for data center service providers. This is anticipated to attract quality investments, encompassing cloud computing, gaming, video streaming, and content delivery networks.
The initiative aligns with CST’s broader mission to localise and enhance digital services within Saudi Arabia. Anticipated to play a pivotal role in implementing strategic plans, the regulations are poised to strengthen the Kingdom’s regional hub status, making it an attractive destination for investors and entrepreneurs.
Scope and stipulations
The scope of the regulation is directed at both wholesale and retail data centre service providers delivering services within Saudi Arabia. Moving to the registration process, Service Providers are mandated to register with the Communications, Space, and Technology Commission (CST) falling under distinct categories: Qualifying, Limited, Standard, and Advanced. Each category is subject to specific requirements and criteria, notably emphasising the inclusion of energy management and sustainability plans, aligning with the Kingdom’s commitment to environmental responsibility.
Furthermore, the registration holds a validity period of three years, with the provision for renewal. A notable aspect is the absence of fees for both obtaining and renewing the registration, indicating a supportive regulatory environment aimed at fostering growth and participation within the data centre industry.
These measures underscore Saudi Arabia’s strategic intent to create a transparent and accessible framework for data centre operators, encouraging compliance with industry standards and environmental considerations.
Obligations of registered service providers
Service Providers must maintain valid registrations, certifications, and commercial registrations.
Responsibilities include physical security, transparency in financial fees, SLAs, and quality standards.
Liability provisions, customer notifications, and cooperation in case of data centre shutdown.
General rules
Separate registration for Cloud Computing Service Providers.
Compliance with Telecommunications Service regulations if applicable.
Data Center information must be accurate and updated with CST.
CST has the right to inspect and review compliance.
Non-compliance may result in penalties, including revocation or suspension of registration.
Service Providers must abide by laws and regulations in Saudi Arabia.
Dispute resolution and language considerations.
