Joint Saudi-German Investment for the Manufacture of Large Data Centers

CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)
CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)
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Joint Saudi-German Investment for the Manufacture of Large Data Centers

CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)
CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)

German and Saudi investors signed partnerships to enhance critical security infrastructure with the aim to establish the first factory in the Middle East for the manufacture of technological equipment and supplies and the production of large data centers.

Sem Köksal, CEO and partner of Legacy Technologies, revealed his recent endeavors with the Saudi government and private institutions to establish a “next generation data center” company, in order to localize the manufacture data centers in Riyadh.

The project will make Saudi Arabia the first country in the Middle East to have this type of data centers and would allow it to export its products to countries around the world.

Legacy Technologies is a German company that specializes in highly secure modular data centers using unique cyber-security tools and highly advanced energy systems to build secure, energy-efficient and sustainable next-generation data centers.

Köksal told Asharq Al-Awsat that while partnerships have already been signed with Saudi investors, the company is looking to forge cooperation agreements with Saudi governmental and private agencies, to contribute to strengthening critical security infrastructure.

He revealed that the company has signed a contract worth $560 million with the Saudi Excellence Holding to establish a joint company in the Kingdom, which is expected to start operations in September 2022.

This will be “the nucleus of a global partnership to enter the global market from Saudi Arabia,” according to Köksal.

It will be the first company to manufacture data centers in the Kingdom by Saudi engineers, he added.

He also noted that Legal Technologies was working closely with Prince Sultan University to establish a center and academy for research and development, stressing the Saudi market was one of the most interesting markets in the region.

He remarked that several global companies are closely watching the development achieved by Saudi Arabia under Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense.

These companies are eager to enter the Saudi market, Köksal revealed, saying the matter is not about “if” but rather “when” they will join.



Oil Retreats on US Tariff Uncertainty and OPEC+ Supplies

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Retreats on US Tariff Uncertainty and OPEC+ Supplies

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices slipped on Thursday as the possibility of US tariffs being reinstated raised demand concerns ahead of an expected supply boost by major producers.

Brent crude futures fell 58 cents, or 0.8%, to $68.53 a barrel by 0942 GMT. US West Texas Intermediate crude declined 57 cents, or 0.9%, to $66.88.

Both contracts had hit one-week highs on Wednesday as Iran suspended cooperation with the UN nuclear watchdog, raising concerns the lingering dispute over its nuclear program could again devolve into armed conflict.

A preliminary trade deal between the US and Vietnam also boosted prices.

Tariff uncertainty looms large, however. The 90-day pause on the implementation of higher US tariffs ends on July 9, with several large trading partners yet to wrap up trade deals, including the European Union and Japan.

The OPEC+ group of oil producers, meanwhile, is expected to agree to raise output by 411,000 barrels per day (bpd) at its policy meeting this weekend. Adding to negative sentiment, a private-sector survey showed that service activity in China - the world's biggest oil importer - expanded at its slowest pace in nine months in June as demand weakened and new export orders declined. A surprise build in US crude inventories also highlighted demand concerns in the world's biggest crude consumer.

The US Energy Information Administration said on Wednesday that domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels.

The market will be watching for the US monthly employment report on Thursday, which is likely to shape expectations over the depth and timing of interest rate cuts by the Federal Reserve in the second half of the year, analysts said.

Lower interest rates could spur economic activity that would boost oil demand.