Amazon Web Services (AWS) plans to invest over $5.3 billion in Saudi Arabia's technology industry, including the construction of data centers and the establishment of a significant cloud presence. This investment aligns with Saudi Arabia's goal of becoming a leading technology hub in the Middle East.
AWS to Invest $5.3 Billion in Saudi Arabia's Tech Industry
( Credit to: Cio )
Amazon Web Services (AWS) has announced plans to invest over $5.3 billion in Saudi Arabia's technology industry. This investment includes the construction of data centers and the establishment of a significant cloud presence in the country. The move comes as Saudi Arabia aims to position itself as a leading technology hub in the Middle East.
AWS plans to launch an AWS infrastructure Region in Saudi Arabia by 2026. This will provide local technology developers, businesses, startups, and entrepreneurs with a comprehensive in-country data center infrastructure for their cloud-based solutions. The new AWS Region will offer a range of services including compute, storage, databases, analytics, and artificial intelligence.
This investment by AWS follows similar moves by competitors such as Huawei, Microsoft, and Oracle, who have also announced plans to build cloud infrastructure in Saudi Arabia. These investments align with Saudi Arabia's strategy to become a global leader in digital technologies, particularly in preparation for the World Expo 2030 in Riyadh.
The decision to invest in Saudi Arabia may have been influenced by pressure on foreign firms to establish operations in the country or risk losing government contracts. Amazon, along with Google and Microsoft, quickly set up regional headquarters in Saudi Arabia to comply with these requirements.
The investment in cloud infrastructure in Saudi Arabia is not only benefiting the country but also the entire region. Cloud adoption in Arab states has significantly increased in recent years, thanks in part to the local investments made by cloud providers like AWS. Building data centers and having in-country infrastructure allows these providers to meet the cultural and governance requirements of the region, making it easier for them to do business.
The AWS Region in Saudi Arabia will initially consist of three Availability Zones, with plans to expand in the future. Each zone will have its own power, cooling, and security systems, ensuring the highest levels of security and resilience for cloud services in the region.
In addition to infrastructure, AWS will also offer training programs to support the growth of the technology industry in Saudi Arabia. One of these programs, the 'AWS Saudi Arabia Women's Skills Initiative,' aims to increase the participation of women in the workforce by providing free training in cloud computing to up to 4,000 women. AWS will also provide cloud computing training for students, developers, and professionals of all genders. Furthermore, AWS plans to establish innovation centers and provide technical mentorship and training for startups in the Middle East and North Africa.
Overall, AWS's investment in Saudi Arabia's technology industry demonstrates the company's commitment to supporting the country's vision of becoming a leading tech hub. The development of data centers and the expansion of cloud services will not only benefit local businesses but also contribute to the growth of the technology sector in the entire region.
