Oracle launches 2nd public cloud region in Saudi Arabia, bolstering the Kingdom’s AI economy

Technology firm Oracle Corp. has launched its second public cloud region in Riyadh as part of a $1.5 billion investment to enhance Saudi Arabia’s digital infrastructure.

The Riyadh cloud region will provide both public and private sector organizations in Saudi Arabia with access to Oracle Cloud Infrastructure, allowing them to modernize applications and innovate using data, analytics, and artificial intelligence, according to a press release.

The initiative is anticipated to significantly contribute to the Kingdom’s AI economy, projected to reach $135.2 billion by 2030.

This expansion is part of Oracle’s distributed cloud strategy and follows the earlier establishment of a region in Jeddah, as well as previously announced plans for another in NEOM.

Saudi Arabia’s Vice Minister at the Ministry of Communications and Information Technology Haytham Al-Ohali said: “The opening of Oracle’s new cloud region in Riyadh reflects the Kingdom’s continuous efforts in boosting the digital economy based on modern technologies and innovation.”

He added: “This step will significantly enable international and local companies to achieve innovation and promote the adoption of AI and cloud computing technologies in various sectors, which enhances Saudi Arabia’s competitiveness at the regional and international level.”

The Riyadh cloud region, hosted by Center3, joins Oracle’s eight cloud regions in the Middle East and North Africa.

Richard Smith, executive vice president and general manager of EMEA Cloud Infrastructure at Oracle, said: “With the rapid expansion of our cloud footprint in Saudi Arabia, Oracle is committed to helping the country achieve its goal of developing one of the strongest digital economies in the world.”

Smith added: “As part of our wider investment in cloud capabilities in Saudi Arabia, the Oracle Cloud Riyadh Region will help accelerate adoption of cloud and AI technologies to boost innovation across all sectors of the Saudi economy, while helping organizations addressing local data hosting requirements.”

The new cloud region will offer low-latency access to cloud services, high availability, backup and disaster recovery capabilities, and OCI’s sovereign AI features, the press release said.

As a result, customers can make use of AI capabilities designed with the requirements of digital sovereignty frameworks in mind, it added.

These capabilities will help organizations comply with local data regulations and ensure AI sovereignty by aligning with digital sovereignty frameworks.

CEO of Center3, Fahad AlHajjeri, said the initiative delivers on “our shared vision of fostering technological innovation and advancing the digital economy” of the Kingdom.

“Oracle’s cloud regions in Saudi Arabia will play an important role in enhancing data sovereignty, driving digital transformation, and empowering businesses across the country to achieve greater agility and growth,” the CEO added.

Jyoti Lalchandani, regional managing director of IDC, added: “Oracle’s continued expansion of its cloud footprint in Saudi Arabia is vital as companies increasingly leverage AI and GenAI capabilities. Local cloud infrastructure helps organizations ensure faster data processing, enhanced security, and compliance with national regulations, helping them innovate more efficiently and effectively.”