The new Oracle public cloud region in Riyadh will drive AI innovation and support the Kingdom’s Vision 2030, with Saudi Arabia’s AI economy projected to reach $135.2bn by 2030

Oracle Corporation has officially opened its second public cloud region in Riyadh, marking a significant advancement in Saudi Arabia’s digital transformation efforts. This new facility is part of a broader $1.5 billion investment aimed at strengthening the Kingdom’s digital infrastructure, a cornerstone of its Vision 2030 initiative.

This second cloud region will offer public and private sector organizations access to Oracle Cloud Infrastructure (OCI) services, providing tools for application modernisation, data analytics, and the implementation of artificial intelligence (AI). The launch underscores Saudi Arabia’s ambition to become a global technology hub, as the Kingdom moves towards enhancing its AI-driven economy, which is projected to reach $135.2 billion by 2030.

Speaking at the Riyadh launch event, Richard Smith, Oracle’s Executive Vice President for Europe, the Middle East, and Africa (EMEA) Cloud Infrastructure, shared the company’s plans for further expansion. In addition to the Riyadh and Jeddah cloud regions, Oracle is set to open a third data centre in Dammam. The company also revealed that a previously planned cloud region in NEOM is on track for launch in late 2024 or early 2025, which will complement Oracle’s growing presence in Saudi Arabia.

Nick Redshaw, Oracle’s Senior Vice President of Technology Cloud in the Middle East and Africa, emphasised the increasing demand for cloud solutions in Saudi Arabia, noting that the rapid adoption of virtual services and AI-driven technologies has outpaced the infrastructure capacity of Oracle’s Jeddah region. “We’ve always anticipated the need for multiple regions across the Kingdom. While the NEOM region is still on the horizon, Riyadh came online sooner due to the growing demand,” Redshaw explained.

In response to the regulatory needs of government clients, Oracle has partnered with Saudi telecom company STC to offer sovereign cloud capabilities, enabling organisations to store data locally while meeting stringent data protection requirements.

This development is part of Saudi Arabia’s broader push towards digitalisation, which spans several sectors, including oil and gas, banking, retail, tourism, and manufacturing. Redshaw pointed out that nearly every industry in the Kingdom is undergoing a digital transformation, driven by a need to integrate AI into business operations. “AI is becoming central to delivering both business value and citizen-focused solutions across sectors,” Redshaw said.

Beyond its immediate technical offerings, Oracle’s cloud infrastructure is also expected to play a pivotal role in supporting the growth of startups and small and medium-sized enterprises (SMEs) across Saudi Arabia. The company’s scalable cloud solutions provide a flexible platform for emerging businesses to experiment, grow, and adapt to market demands.

Redshaw highlighted Oracle’s commitment to fostering local talent as part of its broader investment in the Kingdom. In December 2023, Oracle launched the Mostaqbali program in collaboration with Future Work, under the supervision of Saudi Arabia’s Ministry of Human Resources and Social Development. This initiative aims to train 50,000 Saudi nationals in AI and cloud technologies, equipping them with the skills needed to take full advantage of the country’s evolving digital landscape.

“Building the ecosystem of skills is crucial, particularly in startups where rapid scaling is essential. We’re not just investing in the technology but also in people, ensuring that they have the expertise to leverage this technology effectively,” Redshaw noted.

As Saudi Arabia continues its digital transformation journey, Oracle’s expanded cloud infrastructure is expected to drive growth across multiple sectors, create job opportunities, and attract international businesses to the region. The Kingdom’s Vision 2030, which focuses on diversifying the economy away from oil, places significant emphasis on the development of a robust digital ecosystem, with AI and cloud technologies playing a central role.

The Riyadh public cloud region, alongside the future data centres in Dammam and NEOM, positions Oracle as a key player in supporting Saudi Arabia’s digital ambitions. These cloud regions not only offer immediate technological benefits but also lay the groundwork for sustained economic growth in the Kingdom’s rapidly evolving digital economy.