Amazon Web Services (AWS) is positioning itself as a pivotal player in Saudi Arabia’s tech sector by announcing a $5.3 billion investment to establish data centers and expand its cloud operations within the kingdom. The move is aligned with Saudi Arabia’s vision to transform into a central hub for technology in the Middle East, particularly in anticipation of the World Expo 2030.
Slated to commence in 2026, AWS’s initiative will entail the creation of an infrastructure region in Saudi Arabia. This development is designed to provide local businesses, startups, and tech innovators with robust, domestic data-center facilities to host their cloud-based systems. Prasad Kalyanaraman, AWS’s vice president of infrastructure services, underscored that the upcoming AWS Region will empower organizations to leverage cloud capabilities to the fullest, enabling transformative applications in fields such as analytics and artificial intelligence.
Joining the likes of Huawei, Microsoft, and Oracle, AWS is contributing to the significant influx of tech investments in Saudi Arabia. This surge in interest and capital infusion is supporting the country’s ambition to become a leading digital technologies destination by the time it hosts the World Expo 2030 in Riyadh. Amazon’s commitment to providing secure and resilient cloud infrastructure seeks to meet the increasing demand for such services across the Middle East.
In addition to keeping pace with market growth and competitive forces, Amazon’s decision is partly influenced by Saudi Arabia’s push for foreign firms to establish a local presence, a move that could affect their eligibility for government contracts. As a result, major US-based cloud providers, including Google and Microsoft, hastened to set up regional headquarters in Saudi Arabia.
Microsoft and Oracle have also announced significant investments in the region, with figures of $2.1 billion and $1.5 billion respectively, aimed at enhancing their cloud services. Huawei’s $400 million investment is also a testament to the growing focus on cloud infrastructure in Saudi Arabia.
Gartner’s vice president of research for cloud infrastructure, Phil Dawson, noted the rapid evolution of cloud strategies throughout the Middle East. He highlighted that local investments by cloud providers are driving more sophisticated modernization projects. The cultural and regulatory landscape of the region places a premium on data sovereignty, governance, and local infrastructure, making in-country data centers essential for doing business in the Arab states.
The forthcoming AWS Region in Saudi Arabia will initially feature three Availability Zones, each with independent power, cooling, and physical security, distributed across diverse geographical locations. AWS’s investment extends beyond infrastructure to include educational initiatives. This includes the “AWS Saudi Arabia Women’s Skills Initiative,” in collaboration with Skillsoft Global Knowledge, offering free training to 4,000 women to jumpstart careers in cloud computing.
Furthermore, AWS is dedicated to providing comprehensive cloud-computing training to Saudi students, developers, and professionals across various disciplines. The company also plans to establish two innovation centers and offer startups in the Middle East and North Africa mentorship and training on AWS technologies.