Amazon Web Services to support Saudi ambition to become regional hub of AI
Amazon
Web Services (AWS) is preparing to launch its first cloud region in Saudi
Arabia in December 2026, marking a significant expansion of the company’s cloud
infrastructure in the Kingdom and supporting the country’s ambitions to become
a leading regional hub for artificial intelligence (AI) and digital
technologies.
The new cloud region is expected to provide businesses, government
organizations and developers with access to AWS cloud services from
infrastructure located within Saudi Arabia. The move is also designed to
strengthen data residency, security and regulatory compliance capabilities
while improving the performance of cloud-based applications.
The Saudi Arabia region forms part of AWS’s broader investment in the
Kingdom, which the company has committed to supporting with more than $5.3
billion in planned spending. The investment comes as Saudi Arabia accelerates
the development of digital infrastructure under its Vision 2030 economic
diversification strategy.
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Once operational, the Saudi Arabia region will become AWS’s 40th
cloud region globally.
New infrastructure to support Saudi businesses
The new AWS infrastructure will enable organizations to run applications,
store data and access cloud services locally. Customers will have access to
services covering computing, storage, databases, analytics and AI.
Local cloud infrastructure is expected to reduce latency for applications
that require rapid access to data, while helping organizations address
requirements related to data sovereignty and regulatory compliance.
AWS first announced plans to establish a Saudi Arabia cloud region in
March 2024, outlining its planned investment of more than $5.3 billion in the
country.
Several Saudi companies are already using AWS technology to support
digital transformation and AI initiatives, including Abdul Latif Jameel,
Almosafer, stc Group and Red Bull Mobile. AWS is also working with technology
and consulting partners such as ZainTECH and Accenture to promote
cloud adoption across the Kingdom.
AWS and HUMAIN expand AI infrastructure partnership
Alongside the cloud region, AWS is expanding its collaboration with HUMAIN,
the Saudi AI company owned by the Public Investment Fund.
The companies plan to establish an AI Zone in Saudi Arabia with up to
50 megawatts of capacity by 2028. The facility is expected to use AWS Trainium
chips alongside NVIDIA technology to support large-scale AI training and
inference workloads.
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The partnership also includes plans to make HUMAIN’s ALLAM Arabic
large language model available through Amazon Bedrock, potentially giving
businesses and developers greater access to AI technology designed for
Arabic-language applications.
HUMAIN’s AI infrastructure platform, HUMAIN Fabric, is also expected
to become available through AWS Marketplace, providing additional
infrastructure capabilities for organizations developing and deploying AI
workloads.
Focus on developing Saudi technology talent
AWS is also investing in workforce development as part of its expansion in
the Kingdom.
Through its Amazon Academy, the company plans to train more than 100,000
Saudi citizens in areas including cloud computing, artificial
intelligence, logistics and retail. AWS is working with universities and other
educational institutions to expand access to technical training and support the
development of a skilled digital workforce.
The company has additionally announced plans to provide free training to
as many as 10,000 women through its Saudi Arabia Women’s Skills
Initiative.
These programs are intended to help address the growing demand for cloud
and AI skills as Saudi companies and public-sector organizations accelerate
digital transformation.
Cloud and AI central to Vision 2030 ambitions
The AWS investment comes as Saudi Arabia seeks to build a more
diversified, technology-driven economy and reduce its reliance on traditional
industries.
The expansion of local cloud capacity is expected to play an important
role in supporting organizations as they migrate workloads to the cloud and
adopt generative AI and other advanced technologies.
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enhancing digital presence in Saudi market
AWS estimates that artificial intelligence could contribute approximately $130
billion to the Saudi economy by 2030. The launch of its first Saudi cloud
region, combined with its expanding partnership with HUMAIN, is expected to
provide additional computing capacity and digital infrastructure to support the
Kingdom’s AI ambitions.
The development aligns with Saudi Vision 2030’s broader objectives of
strengthening digital infrastructure, developing local technology capabilities
and positioning the Kingdom as a major global and regional technology hub.
Source: www.asiabusinessoutlook.com
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