Saudi Arabia has announced that various companies, including Amazon Web Services (AWS), will commit more than $10 billion to the establishment of data centers within the nation. This move is part of Saudi Arabia’s strategic plan to evolve and diversify its economy, historically reliant on oil.
The agreements were disclosed at the yearly technological summit LEAP, hosted in Riyadh, and are aimed at fostering the growth of technology startups, as reported by the Saudi Press Agency. AWS has revealed its intention to invest approximately $5.3 billion in the creation of a new infrastructure region, anticipated to launch in 2026, which will also include initiatives to train local developers.
Amazon is in the company of other leading tech corporations such as Google and Microsoft, which previously set up regional bases in Saudi Arabia. The move was largely influenced by a mandate requiring international companies to establish local operations to remain eligible for government contracts. Amazon’s investment is particularly significant for Saudi Arabia’s ambitions to draw foreign investment and establish itself as a central technology hub in the Middle East.
Additionally, DataVolt, a homegrown data center firm, has plans to invest $5 billion in the development of data centers with a capability exceeding 300 megawatts. IBM is set to contribute $250 million towards a software development facility, and ServiceNow is allocating $500 million to adapt its services for the Saudi market.
Dell Technologies is also on the list of tech giants making a move, with intentions to inaugurate a manufacturing and fulfillment center in Saudi Arabia, as stated by SPA.