Saudi Arabia strengthens its position as global AI hub

user icon
GHADA.ISMAIL
calender icon
Apr 28, 2026
article image

Riyadh – Sharikat Mubasher: Saudi Arabia is accelerating its rise as a global hub for artificial intelligence, driven by rapid expansion in digital infrastructure and sustained strategic investments aligned with Vision 2030.

As reported by the Saudi Press Agency, the Kingdom’s data center capacity has surged from 68 megawatts in 2021 to over 440 megawatts in 2025, marking nearly sixfold growth in four years and an annual increase of 52%. Today, more than 60 data centers—developed by over 20 companies with investments exceeding SAR 16 billion—are supporting rising demand for cloud computing and AI applications.

This momentum is also translating into industrial transformation. Obeikan Investment Group has deployed AI and Internet of Things technologies across its operations through a unified digital platform, integrating over 1,200 machines and 280 production lines. The system processes up to 50,000 IoT signals per second, enabling real-time insights, improving operational efficiency by up to 30%, and significantly reducing data analysis time.

The shift has contributed to the company’s growth, with revenues rising from around $750 million to $1 billion over four years, reflecting a broader transition toward data-driven manufacturing.

Mohammed Alrubayan, Deputy Minister for Technology at the Ministry of Communications and Information Technology, said the model highlights the Kingdom’s readiness to enable smart, data-driven industries and reflects the maturity of its digital ecosystem.

Meanwhile, Turki Badris, President of Microsoft Arabia, described Obeikan’s experience as a practical example of how AI can transform industrial operations, noting Saudi Arabia’s rapid shift toward smart manufacturing.

The Kingdom’s continued investments in AI and cloud infrastructure are reinforcing its position in the global digital economy and strengthening its role in advanced technology value chains.


Share

Related News

Backed by AstroLabs, Cloudsdcs launches operations in Saudi Arabia
News
Calendar Icon
April 29, 2026
Backed by AstroLabs, Cloudsdcs launches operations in Saudi Arabia
Read More
OGold secures strategic investment from Plug and Play Ventures
News
Calendar Icon
April 29, 2026
OGold secures strategic investment from Plug and Play Ventures
Read More
WEF: SUSTAIN platform to unlock $20bn partnerships in Kingdom by 2030
News
Calendar Icon
April 29, 2026
WEF: SUSTAIN platform to unlock $20bn partnerships in Kingdom by 2030
Read More
SAMA licenses Dufaa Financing Company to provide consumer finance
News
Calendar Icon
April 29, 2026
SAMA licenses Dufaa Financing Company to provide consumer finance
Read More
SIC invests in BRKZ to leverage AI in supply chain
News
Calendar Icon
April 29, 2026
SIC invests in BRKZ to leverage AI in supply chain
Read More
Saudi Arabia signs 2 agreements to build 16MW Tier III data center
News
Calendar Icon
April 29, 2026
Saudi Arabia signs 2 agreements to build 16MW Tier III data center
Read More
Wadi Jeddah, Falak Angels launch ‘KAU Angel Investor Program’
News
Calendar Icon
April 28, 2026
Wadi Jeddah, Falak Angels launch ‘KAU Angel Investor Program’
Read More
Spare unveils first global Open Banking payments solution
News
Calendar Icon
April 28, 2026
Spare unveils first global Open Banking payments solution
Read More
Saudi Arabia strengthens its position as global AI hub
News
Calendar Icon
April 28, 2026
Saudi Arabia strengthens its position as global AI hub
Read More
Rain acquires Digital Ma’arefa to strengthen presence in Saudi Arabia, region
News
Calendar Icon
April 28, 2026
Rain acquires Digital Ma’arefa to strengthen presence in Saudi Arabia, region
Read More