RIYADH: Saudi Telecom Co. has signed an agreement with Public Investment Fund-backed firm Future Artificial Intelligence Co., also known as Humain, to launch a joint venture to develop and operate data centers dedicated to artificial intelligence in the Kingdom.
According to a Tadawul statement, Humain will hold a 51 percent stake in the JV with stc responsible for the remaining 49 percent.
Under the newly sealed six-year memorandum of understanding, the data center, which will be established through stc’s subsidiary Digital Data and Communications Centers, also known as center3, will be built with advanced infrastructure and can handle up to 1 gigawatt of power, starting with an initial capacity of 250 megawatt, depending on customer contracts.
The move underscores stc’s commitment to advancing Saudi Arabia’s digital future and aligns with Vision 2030 by localizing advanced digital infrastructure, accelerating AI development, and strengthening the Kingdom’s position as a regional digital hub.
It also falls in line with the National Strategy for Data and AI goals to position the Kingdom among the top 10 countries in the open data index and among the top 20 countries in peer-reviewed data and AI publications by 2030.
The bourse filing said: “The JV brings together center3’s scale, data-center leadership, and extensive regional connectivity with Humain’s strategic mandate to champion end-to-end capabilities — laying the groundwork for high-capacity, low-latency infrastructure critical to the AI era.”
It added: “The financial impact is expected to be positive; however, it cannot be determined at this stage, as it depends on the project plans and investment requirements.”
The Tadawul statement further revealed that Humain is considered a related party, as it is one of PIF's subsidiaries, which also holds an ownership stake in stc.
Earlier this month, the Saudi Press Agency reported, citing data from Global AI Index, that Saudi Arabia secured the fifth rank globally and first in the Arab region for growth in the AI sector.
According to the report at the time, this development underscores the Kingdom’s progress in AI, reflecting the success of Saudi Arabia’s development plans and its ability to achieve high international competitiveness under its economic diversification strategy, Vision 2030.
