Skip to content Skip to Search
Skip navigation

Amazon to invest $5.3bn in data centres in Saudi Arabia

The partnership with AWS ignites a new era of technological innovation for the kingdom, said Saudi IT minister Abdullah Alswaha Unsplash.com/Jordan Harrison
The partnership with AWS ignites a new era of technological innovation for the kingdom, said Saudi IT minister Abdullah Alswaha

Amazon Web Services (AWS), the cloud division of Amazon, is to invest $5.3 billion (SAR20 billion) in establishing data centres in Saudi Arabia.

The move will allow customers to run workloads and securely store customer content within the kingdom, as well as offer high-speed access to users.  

“Today’s announcement supports Saudi Arabia’s digital transformation with the highest levels of security and resilience available on AWS cloud infrastructure, helping serve fast-growing demand for cloud services across the Middle East,” said Prasad Kalyanaraman, vice president of infrastructure services at AWS. 

“We look forward to helping Saudi Arabian institutions, startups and enterprises deliver cloud-powered applications to accelerate growth, productivity and innovation and spur job creation.”

The Saudi communications and information technology minister, Abdullah Alswaha, said the partnership with AWS, backed by the $5.3 billion investment, ignites a new era of technological innovation for the kingdom, added.  

The new AWS infrastructure region, comprising three availability zones at its launch, will add to the existing 105 availability zones across 33 regions around the world. These availability zones, Amazon says, are strategically positioned to ensure business continuity for customers while maintaining low latency – the delay before a transfer of data begins – for high-availability applications.

In addition, AWS will establish two innovation centres and provide startups in the Middle East and North Africa with technical mentorship and training on its technologies such as artificial intelligence and machine learning.

Regional companies using AWS for their workloads include Saudi Telecom Company, Seera Holding and Mobily, Red Sea Global, Almarai, Almosafer and Jahez, among others.

The Saudi sovereign wealth fund, the Public Investment Fund, invested in a partnership with the US asset manager DigitalBridge Group last year to develop data centres in the kingdom and across the GCC.

The tech giant Microsoft has announced plans to invest in a new cloud data centre region in the kingdom.

Data centre capacity in Egypt, Saudi Arabia and the UAE is forecast to more than double over the next two years, aided by improved data protection laws and subsea cable connectivity.

Analysts at CBRE said that the data centre capacity of the three countries is estimated to total around 336 megawatts (MW) but is expected to grow to 707 MW by 2025. Saudi Arabia and the UAE are expected to add the bulk of the additional capacity. 

Latest articles

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced a AED80 billion ($22 billion) sewerage system, following a review of infrastructure ordered by the UAE president. The developer, which is listed on the Dubai stock exchange, announced on Friday it would repair all […]

A customer paying with a credit card inside the Black Friday Market in Beirut. Lebanon wants more people to move away from cash

Lebanon launches plan to promote use of bank cards

Lebanese central bank Banque du Liban announced a new agreement on Thursday that it hopes will result in a rebound in the use of bank cards. As part of the agreement, Mastercard and Visa will lower card fees on transactions, particularly for people with bank accounts based outside Lebanon. In a press release, the bank […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Iraq gas oil

Iraq to auction 30 oil and gas projects this month

Iraq will auction 30 new oil and gas projects in two licensing rounds before the end of April. The bidding round will be held on April 27, Reuters reported, citing an oil ministry statement. Last October Iraq passed a long-awaited oil and gas law, which will help the country attract more international investments into the hydrocarbon industry and boost government revenues.  Ali Metwally, an […]