AWS to invest $5.3 bn for data centres in Saudi Arabia

AWS in Saudi Arabia: Amazon Web Services (AWS), the cloud division of Amazon.com has announced the setting up of data centres in Saudi Arabia by 2026, with an investment commitment exceeding $5.3 billion. 

The introduction of these cloud regions will empower customers to securely store data and execute workloads, while also improving speed and accessibility for users within the region.

In view of an increased demand for Artificial Intelligence (AI) technologies, apart from Amazon, its competitors such as Google’s parent Alphabet and Microsoft, have already earmarked investments, primarily targeting the expansion of data center infrastructure.

Key entities in Saudi Arabia, including Saudi Telecom Company SJSC, Seera Holding, and Mobily, are already using AWS to facilitate various workloads, underscoring the significance of cloud computing services in the region.

Reports dating back to 2017 indicated discussions between Amazon, including its AWS unit, and Riyadh officials regarding investment prospects in Saudi Arabia, demonstrating a longstanding interest in the country's burgeoning technology landscape.

Recently, the head of Saudi Arabia's Public Investment Fund (PIF) sovereign wealth fund advocated for the kingdom as a potential epicenter for AI initiatives beyond the United States, citing its abundant energy resources and substantial funding capacity.

(With Reuters inputs)