Amazon Web Services (AWS), the cloud division of Amazon.com (AMZN.O), has announced its plans to establish data centers in Saudi Arabia by 2026, with an investment exceeding $5.3 billion in the kingdom.
This move aims to bolster the company’s presence in the region and cater to the increasing demand for cloud services.
The forthcoming cloud region will provide customers with the capability to securely store data and execute workloads, promising enhanced speed and efficiency for users.
The expansion aligns with AWS’s strategy to expand its global infrastructure footprint, ensuring optimal performance and reliability for its clients.
This initiative mirrors similar endeavors by competitors such as Google-parent Alphabet (GOOGL.O) and Microsoft (MSFT.O), who have also pledged significant investments in data center infrastructure.
These investments underscore the industry’s commitment to supporting the proliferation of artificial intelligence technologies and meeting the evolving needs of businesses worldwide.
Amazon stated that notable customers in the region utilizing AWS for running workloads include Saudi Telecom Company SJSC (7010.SE), Seera Holding (1810.SE), and Mobily, among others.
This highlights the widespread adoption of AWS services among key players in Saudi Arabia’s business landscape.
Reports surfaced in 2017 indicated discussions between Apple (AAPL.O) and Amazon, particularly through its AWS unit, regarding investment opportunities in Saudi Arabia. This signifies the interest of major tech players in tapping into the kingdom’s potential as a lucrative market for technological advancement and business expansion.
Moreover, recent statements from the head of Saudi Arabia’s Public Investment Fund (PIF) underscore the kingdom’s ambitions to emerge as a prominent hub for AI innovation outside the United States.
Leveraging its abundant energy resources and substantial funding capacity, Saudi Arabia aims to position itself as a leading destination for AI activity, attracting investments and fostering technological development.