Data Centres: Regulatory Considerations in Kuwait

5 min 25 sec December 19, 2025 (Edited)

Demand for data centres continues to increase exponentially, remaining critical infrastructures in the digital landscape of the 21^st Century. To date, Kuwait has more than five data centres, with more to come and is heavily investing in digital infrastructure projects. The region’s growing interest in artificial intelligence (“AI”) has ushered in an era of high growth and demand for data centres in the Middle East. This article takes into consideration and focuses on the energy implications of data centres as well as the data considerations for customers and companies alike. A potent combination of low energy costs, rise in technological innovation, heightened investment, and comprehensive regulatory environment have also spurred the rise in data centres.

Data Centre Considerations and the Cloud Environment in Kuwait

Digital infrastructure is a vital part of the Kuwaiti economy, and some have argued it has become the “new oil” of the future. Kuwait has developed a comprehensive regulatory framework for cloud computing and data centres, primarily overseen by the Communication and Information Technology Regulatory Authority (“CITRA”). The key documents governing the cloud in Kuwait include the Cloud Computing Regulatory Framework, Cloud First Policy, Cloud Service Providers Regulations and Commitments and supporting guides, which together make up the “Cloud Regulations” in Kuwait.

Kuwait’s Coud Regulations specifically address data centres. Cloud service providers must provide CITRA with information about the location of all data centres used for Kuwaiti clients, including those outside Kuwait if used for processing or transmission. Cloud service providers wishing to host sensitive data (level 3 and level 4) must operate data centres physically within Kuwait and obtain a license from CITRA. Data centres must be owned or operated by licensed entities, and technical and non-technical specifications must be disclosed to CITRA. Hybrid cloud models may be used if the sensitive portion of the data remains within Kuwait. Thus, certain data must remain within Kuwait’s borders. Data centres must meet all regulatory and security requirements.

Data centres have become critical national infrastructure, in the same way that oil refineries are critical. Strategically, keeping sensitive data within national borders protects against foreign jurisdiction and supports local law enforcement. For companies operating in or servicing Kuwait, understanding and complying with CITRA’s cloud regulations is essential. Data centres are not just technical infrastructure – they are strategic assets underpinning Kuwait’s digital economy. Careful attention to location, security, and compliance are important.

According to Kuwait Decision No. 891 of 2024 Concerning Direct Connection to Data Centre Landing Stations, internet service providers must provide data indicating the request of the cloud computing services provider for the data centre consisting of three data centres affiliated with a single licensee by the CITRA located in Kuwait. The connection cost for each cloud-based connection to the cloud allocated by the CITRA, in accordance with the regulations for the use of state-owned real estate properties allocated to the CITRA is 90 Kuwaiti Dinars.

CITRA licensed entities must comply with CITRA Resolution No. 26 of 2024 (“CITRA Resolution”).  The CITRA Resolution shall apply to all Service Providers licensed by CITRA who operate in the field of collecting, processing and storing personal data and the content of User Data in whole or in part, whether permanently or temporarily by automated means or by any other means that form part of the data preservation system, whether the processing is carried out inside or outside the State of Kuwait. The provisions of the CITRA Resolution require a proactive, transparent, and user centric approach to data management. Readiness for regulatory scrutiny are essential for continued operation in Kuwait’s digital and cloud services market. In recent years, Kuwait has become more efficient in e-government services, high internet coverage, and more AI-powered services

Energy Considerations: Grid Impact Assessments and Forecasting

As Kuwait continues to have increased demand for data centres, it is critical that power grid impact assessments are taken into consideration. To avoid future power blackouts, such considerations are important. In the case of data centres, the equipment is extremely sensitive. Although it depends upon the scope of the data centre, generally having availability 24/7 is the expectation. In addition to the practical energy concerns associated with data centres, the environmental considerations are important.

Companies building data centres in Kuwait must adhere to Kuwait Law No. 42 of 2014 on the Issuance of the Environment Protection Law (“Environment Law”). In accordance with the Environment Law, Environmental Impact Assessment are covered under Articles 16 and 17. Environmental Impact Assessment Studies review the comprehensive scientific studies to assess the overall impacts associated with the various projects and activities on environment before starting to implement such projects, or when any modifications or extensions to existing ones are applied, pursuant to the decisions issued by the competent authority. These include studies to determine, predict, measure and interpret the expected effects, as well as identify methods to control them to reduce or minimise their negative impacts during the various phases of the project.

Kuwait Environmental Impact Assessment Considerations

All parties subject to the provisions of the Environment Law are prohibited to start the implementation of any project, or to conduct any alterations or expansions to the existing activities, or to obtain any licences of the same, before carrying out environmental impact assessment studies pursuant to the rules, requirements and procedures set by the Implementing Regulation of the Environment Law. Additionally, no party, whether a company, an organisation, a consulting office, a centre or a laboratory, or any other multiple activity parties may practice any activity or services or provide any consultancy in the field of environment unless it obtains the approval of the Authority, pursuant to the requirements and procedures set by the Implementing Regulation of the Environment Law

Kuwait Decision No. 14 of 2017 on the Fees and Charges Collected by the Environment Public Authority for the Planning Management Services and Environmental Impact Assessment lists the different categories of assessments, ranging from KD 30-60 depending upon the project. The Planning and Environmental Impact Assessment Department collects the fees for the services based upon the type or project or activity. Depending upon the size and scale of the data centres in Kuwait, environmental considerations and Environmental Impact Assessments should be considered.

Conclusion

The increased demand for data centres in Kuwait provides many opportunities for future innovation. However, Kuwat has stringent regulatory requirements across a broad spectrum of fields. Data centres must comply with Kuwaiti regulatory requirements including data and energy considerations. In addition to the components listed above, depending upon the project, environmental, cybersecurity standards, data privacy regulations, and CITRA’s technical requirements must be considered.