Prime Highlights:
- STC and PIF-backed Humain launch a joint venture to develop advanced data centers, supporting the Kingdom’s digital growth.
- The project aligns with Vision 2030, strengthening Saudi Arabia’s position as a regional technology hub.
Key Facts:
- The data centers will start with 250 megawatts of power, with the ability to expand up to 1 gigawatt depending on demand.
- Saudi Arabia ranks fifth globally and first in the Arab region for technology sector growth, reflecting its progress under Vision 2030.
Background:
Saudi Telecom Company (stc) has signed an agreement with Future Artificial Intelligence Co. (Humain), a firm backed by the Public Investment Fund (PIF), to establish a joint venture (JV) aimed at developing and operating data centers dedicated to artificial intelligence across the Kingdom.
Under the terms of the six-year memorandum of understanding, Humain will hold a 51 percent stake, while stc will retain 49 percent. The data centers will be constructed through stc’s subsidiary, Digital Data and Communications Centers, also known as center3. The facilities will be built with advanced infrastructure, starting with 250 megawatts of power and the ability to expand up to 1 gigawatt, depending on customer needs.
The joint venture is part of stc’s plan to grow Saudi Arabia’s digital sector in line with Vision 2030. It will help the Kingdom become a leading technology hub in the region. This effort also supports the National Strategy for Data, which seeks to place Saudi Arabia among the top 10 countries in the Open Data Index and improve its ranking in global data publications by 2030.
A statement filed with Tadawul said the JV “combines center3’s scale, data-center expertise, and regional connectivity with Humain’s capabilities, creating infrastructure essential for the digital era.” The financial impact is expected to be positive, although exact figures will depend on project plans and investments.
The announcement also highlights the interconnectedness of Saudi state-backed entities, noting that Humain is considered a related party due to its status as a PIF subsidiary, which also holds a stake in stc.
Recent reports show that Saudi Arabia is fifth in the world and first in the Arab region for technology growth. This shows the country’s progress in reaching its Vision 2030 goals. The new joint venture will help Saudi Arabia become a strong leader in digital infrastructure and stay competitive globally.
