Market Intelligence
Artificial Intelligence Cloud Computing Saudi Arabia

Saudi Arabia ICT New Data Center Strategy to Accelerate AI and Cloud Expansion

In June 2025, the Saudi government officially unveiled its National Data Center Strategy, a major digital infrastructure initiative intended to position the Kingdom as a regional leader in cloud computing and artificial intelligence (AI). The strategy, spearheaded by the Ministry of Communications and Information Technology (MCIT) in collaboration with the Saudi Data and Artificial Intelligence Authority (SDAIA), sets the ambitious goal of building up to 1.5 gigawatts of data center capacity by 2030, making it one of the largest planned national builds in the Middle East.

This initiative directly supports Saudi Arabia’s Vision 2030, and represents a significant opportunity for U.S. companies in the ICT sector, particularly those specializing in cloud services, data center equipment, AI chips, green energy systems, and cybersecurity solutions.

Key Implications for U.S. Companies:

  • The National Data Center Strategy prioritizes foreign investment, localization partnerships, and public-private collaboration. Recent public-private MOUs, including DataVolt’s $20 billion partnership with U.S.-based Supermicro, highlight the increasing demand for American technology, hardware, and services.

  • U.S. companies offering high-performance computing (HPC), cooling systems, renewable energy integration, and data center security tools will find growing demand as the Kingdom ramps up AI model training, LLM hosting, and hyperscale cloud deployments. Saudi officials have emphasized alignment with international standards, creating a welcoming environment for U.S. firms.

  • Notably, the strategy promotes regional AI model development and sovereign data hosting, signaling a need for partnerships that balance compliance with Saudi data localization laws while ensuring operational scalability.

U.S. technology companies interested in exploring these opportunities are encouraged to engage early with MCIT, SDAIA, and potential local partners. Understanding Saudi Arabia’s data classification and localization frameworks will be essential for successful market entry. Companies should also explore how their offerings align with the Kingdom’s sustainability goals, as green technology is a key pillar of the data center roadmap.

Any inquiries or requests for further information may be sent to Tareq.Ghazal@trade.gov.