August 2026

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 IN THIS EDITION

As it positions digital infrastructure as a core pillar of its economic diversification strategy, Saudi Arabia is using large-scale investment and leveraging global technology partnerships to achieve this goal.

 

Data centres are at the heart of this push. The country’s data centre capacity has increased more than sixfold since the launch of Vision 2030, rising from 68 megawatts (MW) in 2021 to more than 467 MW in the first quarter of 2026. Investment in data centres and related digital infrastructure has exceeded ⃁ 56.2 billion, creating the physical capacity needed to support artificial intelligence (AI) workloads, cloud services, and data-intensive industries, according to a Saudi Press Agency report.

 

The kingdom is also deepening partnerships with global technology companies to broaden its digital ecosystem. Oracle, Alibaba Cloud, and Google Cloud have established operations in Saudi Arabia, while an ⃁ 11 billion strategic partnership between Humain and Blackstone adds momentum to the country’s ambition to become a major AI investment destination. The combination of relatively abundant and inexpensive energy, available land for large-scale facilities, and geographical location gives Saudi Arabia structural advantages in competing for data centres and AI investment, securing a second place ranking globally in data centre market attractiveness.

 

Saudi Arabia is also boosting its connectivity with the pursuit of next-generation networks not only to serve major urban centres but also to extend digital access to underserved communities. A 5G trial using high-altitude platform systems (HAPS) demonstrated coverage of nearly 500,000 square kilometres in remote areas. It has also conducted a first-of-its-kind trial integrating non-terrestrial networks with terrestrial networks, pointing to new ways of expanding connectivity and narrowing the digital divide.

 

These investments have shone a global spotlight on the country. After securing the top rank last year, Saudi Arabia maintained its position in the International Telecommunication Union’s 2026 ICT Development Index, beating 159 countries. It also ranked 14th globally and first in the Arab world in the Global AI Index. The kingdom ranked first globally in AI security, privacy and encryption, first in women’s empowerment in AI, and third in the development of advanced AI models and the share of AI talent.