Riyadh to Expand Digital Infrastructure Plan

As many as four new cooperative initiatives to build and develop hyperscale data centers across the Kingdom, leveraging environmentally friendly and renewable energy generation projects currently, in progress, across the Kingdom, were announced by the Ministry of Communications and Information Technology.

Such a move falls in line with the extension of the ministry’s Saudi Vision 2030 multi-phase plan to transform the Kingdom from a factor-based to innovation-driven digital economy, according to SPA.

This shift is facilitated by the buildout and development of hyperscale data centers needed to accelerate digital transformation, increase the adoption of emerging technologies, boost technology and digital investments and drive the emergence of Saudi Arabia as a leading cloud services hub.

It is working closely with a group of local and international companies to structure the right business principles for the buildout and operation, in line with the ambition of this multi-phased plan to accelerate the development of hyperscale data centers.

Estimated capacity will be 1300 Megawatts and will leverage sustainable renewable energy generation and an expected investment of about $18 billion.

Stressing the importance of enabling partners in the private sector to playing a more active role in accelerating economic diversification, Deputy Minister for Infrastructure Bassam Al Bassam said: “Today, we drive the buildout and development of hyperscale centers needed to increase the adoption and maturity of cloud services.

The government of Saudi Arabia has made great efforts to stimulate the development of the country’s digital infrastructure and enhance its role in connecting the globe.

The government launched a nationwide initiative to connect 3.5 million households via fiber to the home (FTTH), covered 70% of the rural households in remote areas with wireless broadband networks, covered more than 74 cities with 5G technology and launched the first neutral Internet Exchange Point in Saudi Arabia (SAIX).

It is noteworthy that the Kingdom is home to three of the largest telecom operators, in the region, and is the largest ICT and emerging technology market in the Middle East and North Africa region with a value exceeding $35 billion as of 2020.