Saudi Arabia has leveraged its advanced digital infrastructure and partnerships with leading global technology companies to establish its position as a global hub for artificial intelligence investment, underpinned by competitive advantages that include reliable energy, vast land availability, and a strategic geographic location. The Kingdom has made rapid strides in the data center sector, with capacity increasing from 68 MW in 2021 to more than 467 MW in the first quarter of 2026, supported by investments exceeding SAR56.2 billion in data centers and digital infrastructure. The sector has grown more than sixfold since the launch of Saudi Vision 2030, as part of a national data and AI strategy that contributes to economic diversification and strengthens the Kingdom’s readiness for the knowledge economy. Saudi Arabia has further strengthened its position as a global destination for technology investment by attracting some of the world’s largest cloud service providers. The Kingdom hosts operations for Oracle, Alibaba Cloud, and Google Cloud, alongside an SAR11 billion strategic partnership between HUMAIN and Blackstone, reflecting growing global confidence in Saudi Arabia’s digital investment environment, SPA reported. This investment appeal is underpinned by a comprehensive set of competitive advantages, including abundant energy resources, extensive land available for data center expansion, and a geographic location connecting Asia, Africa, and Europe, positioning the Kingdom second globally in data center market attractiveness. Saudi Arabia’s leadership has extended to helping shape the future of the global digital economy. As one of the leading G20 countries in the communications and technology sector, the Kingdom led G20 consensus on a roadmap for defining and measuring the digital economy and the adoption of human-centered, trustworthy AI principles. It also contributed to transforming the Digital Economy Task Force into a permanent working group, reinforcing its role as an international partner in advancing digital policies and strengthening global cooperation in technology. As part of its efforts to bridge the global digital divide, the Kingdom has led pioneering initiatives, including a 5G trial using High-Altitude Platform Systems (HAPS), which demonstrated the ability to cover nearly half a million square kilometers in remote areas. Saudi Arabia also conducted the first-of-its-kind trial integrating non-terrestrial networks (NTN) with terrestrial networks, offering a future solution for expanding connectivity and accelerating access for unconnected communities. These achievements have been reflected in the Kingdom’s performance across international indicators. Saudi Arabia ranked first globally twice in the International Telecommunication Union’s (ITU) 2026 ICT Development Index, outperforming 159 countries, reflecting the strength of its integrated digital infrastructure, widespread connectivity, and high levels of digital adoption. The Kingdom also ranked second among G20 countries in the ITU’s ICT Regulatory Tracker and second among G20 countries in digital competitiveness according to the European Center for Digital Competitiveness, while digital infrastructure coverage reached approximately 99% of the Kingdom’s population. Saudi Arabia has continued to strengthen its standing across global AI indices, ranking first in the Arab world and 14th globally in the Global AI Index. The Kingdom also ranked first globally in AI security, privacy, and encryption; first in women’s empowerment in AI; third globally in the development of advanced AI models; and third in the share of specialized AI talent, while recording the world’s highest growth rate in specialized talent. It also ranked fourth globally in attracting international talent. The impact of this progress has extended to empowering people and improving quality of life. Saudi Arabia launched the world’s largest virtual hospital, leveraging artificial intelligence technologies to deliver advanced healthcare services. The Kingdom has also made significant strides in empowering women in the technology sector, with their participation rising from 7% to 35%, surpassing the averages of both the G20 and the European Union. This reflects the success of investing in human capital alongside investment in digital infrastructure. Saudi Arabia’s readiness has also received recognition from independent international institutions. JLL, as reported by Bloomberg, expects Riyadh to lead the growth of AI-related data centers in the Middle East, further underscoring the Kingdom’s growing position as one of the world’s leading destinations for investment in artificial intelligence and digital infrastructure.
