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  2. Saudi Arabia strengthens its position as global AI hub

Saudi Arabia strengthens its position as global AI hub

GHADA.ISMAIL
Apr 28, 2026
Capacity surges sixfold as investments and industrial adoption drive digital transformation

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.

Tags

artificial intelligence
digital infrastructure
data centers
Saudi Arabia
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