MIS, Saudi Fransi Capital sign agreements to develop, design, manage data center facilities

Logo of MIS

Al-Moammar Information Systems Co. (MIS) signed today, July 4, agreements for the development, design, and management of data center facilities with Saudi Fransi Capital (SFC).
 

SFC is the manager of the proposed private investment fund, for which a memorandum of understanding (MoU) was signed nearly a month ago, MIS said in a bourse filing.
 

The Sharia-compliant fund will invest in and own six data centers in the Kingdom at an estimated budget of SAR 1.2 billion as a first phase, the company added.
 

MIS was named the developer and designer that will undertake the design, development, and execution of six data centers, on a turnkey basis, with an initial capacity of four megawatt each.

Furthermore, MIS will continue as the facility manager for the six data centers for an initial period of 15 years.
 

Under the agreement, MIS will receive the basic design development fee of 10% of the development budget. Payments for the development and design fees will be made up of units in the proposed fund (not to exceed 10% of the total outstanding units of the proposed fund) and cash.
 

MIS will also receive a facility management fee of 7% of the revenue generated from data center operations, given that the facility management agreements will initially be binding for 15 years.
 

MIS expected to the execution commence in Q4 2021 based on tentatively agreed timelines, and to be completed in Q4 2022.
 

The validity of these agreements is contingent upon the successful launch of the proposed fund expected in the second half of 2021.
 

The expected financial impact of the development and design agreements for MIS will reach about SAR 120 million, based on the development and execution stages.

The financial impact is expected to be achieved over the currently targeted development period, which begins in the fourth quarter of 2021 until the fourth quarter of 2022.

There will also be an additional positive impact on the revenues and profits resulting from the execution of the project during the execution phase, MIS added.

The estimated financial impact of the facilities management agreements for MIS will begin when the data centers launch operations. It is expected to be realized in the first quarter of 2023.

Overall, the project will have a positive impact, however, it is not possible at this stage to give specific details about the timing and size of the effect of the agreements.
 

MIS also expects a positive financial impact from its investment in the proposed fund, which will be realized as part of the design construction fees to be paid in modular. As of now, it is too early to give detailed information about the timing and magnitude of the effects of the agreements, the statement concluded.