AWS to Set Up Saudi Data Centers, Announces $5.3 Bn Investment

Amazon Web Services (AWS), the cloud division of Amazon.com, revealed plans to launch data centers in Saudi Arabia by 2026, accompanied by a substantial investment exceeding $5.3 billion. The move aims to capitalize on the growing demand for secure content storage and efficient workload operations.

The new cloud region in Saudi Arabia is designed to provide users with increased speed and secure facilities for storing content. Amazon, along with competitors Google-parent Alphabet and Microsoft, is committing significant funds to expand data center infrastructure, driven by the escalating adoption of artificial intelligence (AI) technologies.

“The new AWS Region will enable organizations to unlock the full potential of the cloud and build with AWS technologies like compute, storage, databases, analytics, and artificial intelligence, transforming the way businesses and institutions serve their customers,” says Prasad Kalyanaraman, VP of Infrastructure Services at AWS.

Notable customers in the region leveraging AWS for their workloads include prominent entities such as Saudi Telecom Company SJSC, Seera Holding, and Mobily. This initiative underscores Amazon's dedication to supporting businesses in Saudi Arabia with advanced cloud services.

Reports from 2017 indicated that Apple and Amazon, particularly its AWS unit, were engaged in discussions with Riyadh regarding investments in Saudi Arabia. Additionally, the head of Saudi Arabia's Public Investment Fund (PIF) sovereign wealth fund recently highlighted the kingdom as a promising hub for AI activities, citing its abundant energy resources and robust funding capacity.