Page 107 - SAMENA Trends - Jan-Mar 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

Saudi Arabia’s ‘Data Centre Services Regulations’ Comes into Force

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 centers, ensure fair competition, and
optimize the use of information technology infrastructure. Notably,
it also emphasizes the importance of promoting advanced and
environmentally friendly data centers. 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 localize 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. The scope of the regulation is
directed at both wholesale and retail data center 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 emphasizing 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 center industry. These measures underscore Saudi Arabia’s
strategic intent to create a transparent and accessible framework • Compliance with Telecommunications Service regulations if
for data center operators, encouraging compliance with industry applicable.
standards and environmental considerations. • Data Center information must be accurate and updated with
Obligations of registered service providers CST.
• Service Providers must maintain valid registrations, certifications, • CST has the right to inspect and review compliance.
and commercial registrations. • Non-compliance may result in penalties, including revocation or
• Responsibilities include physical security, transparency in suspension of registration.
financial fees, SLAs, and quality standards. • Service Providers must abide by laws and regulations in Saudi
• Liability provisions, customer notifications, and cooperation in Arabia.
case of data center shutdown. • Dispute resolution and language considerations.
• General rules
• Separate registration for Cloud Computing Service Providers.

107 JANUARY-MARCH 2024