Quantum Switch Tamasuk is evaluating strategic options, including a potential sale of its Saudi data-centre business, in a process that could attract global buyout interest, Reuters reported, citing sources familiar with the matter.

The company, a joint venture between Saudi infrastructure developer Tamasuk and UK-based Quantum Switch, has appointed Rothschild to advise on the review. One source indicated the business could be valued at significantly more than $500m. Deliberations remain at an early stage and the company has not yet decided whether to proceed with a sale.

QST operates two data centres in Dammam in eastern Saudi Arabia, each with 9MW of capacity. The facilities form part of broader plans to expand digital infrastructure across the kingdom.

The review comes as Saudi Arabia and other Gulf states deploy substantial capital into data centres to position themselves as global artificial intelligence hubs. Governments are betting that abundant land and access to competitively priced energy will attract hyperscale cloud and AI operators.

Global private equity firms active in the region have shown interest in the assets, according to the sources. Recent transactions underscore sustained investor appetite. KKR acquired a minority stake in Dubai-based Gulf Data Hub last year, while Silver Lake invested in Khazna Data Center Holding, which is developing a large data-centre campus in Abu Dhabi.

Although challenges remain around data governance, chip access, and talent availability, the potential QST transaction would highlight continued private capital engagement in Gulf digital infrastructure as the region’s AI strategy accelerates.

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