Amazon Invests $5.3 Billion in Data Centers in Saudi Arabia

Amazon Web Services, the cloud service provider of Amazon.com, announced today, Monday, that it will launch data centers in Saudi Arabia in 2026 and plans to invest more than $5.3 billion in the kingdom. The cloud service area will allow customers to securely store content and handle workloads while providing higher speed for its users. Amazon and its competitors in cloud computing, Alphabet, the parent company of Google, and Microsoft, stated that they will increase their investments, primarily in data centers, to support the growing adoption of artificial intelligence technologies. Amazon noted that customers in the region using Amazon Web Services for workloads include Saudi Telecom Company, Seera Group, Mobily, and others. Reuters reported in 2017 that Apple and Amazon, led by its Amazon Web Services unit, were in discussions with Riyadh regarding investment in Saudi Arabia. Last month, the head of the Public Investment Fund, Saudi Arabia's sovereign wealth fund, referred to the kingdom as a potential hub for artificial intelligence activity outside the United States, citing its energy resources and financial capability.