In a significant move to accelerate the Kingdom’s digital transformation, Ministry of Investment, in collaboration with Shareek Program Center, has signed two strategic agreements with Saudi Energy Company and Dawiyat Integrated Telecommunications and IT Company to enable the development of a Tier III data center.
The agreements highlight the critical role of the energy, telecommunications, and information technology sectors in supporting strategic projects that drive the digital economy. The initiative is set to enhance Saudi Arabia’s digital infrastructure, promote data localization, and strengthen the Kingdom’s readiness to attract high-value investments in the data center sector.
The signing ceremony was attended by representatives from Ministry of Energy, Ministry of Investment, Ministry of Communications and Information Technology, the Shareek Program Center, along with the participating companies.
The agreements aim to develop advanced digital infrastructure that will accelerate the transition toward a fully integrated digital economy. They also support Saudi Arabia’s ambition to position itself as a regional hub for data centers, while attracting leading global technology companies and boosting foreign investment in the IT sector.
In addition, the initiative will enhance reliance on local digital infrastructure, improve the efficiency of IT services, and reduce dependence on hosting data outside the Kingdom. This approach is expected to strengthen digital sovereignty while supporting sustainable economic growth.
The planned Tier III data center represents a major step forward in improving service reliability and ensuring business continuity. It will play a vital role in supporting data-driven sectors and advancing the Kingdom’s preparedness for emerging digital economy requirements, including smart city applications and Internet of Things (IoT) technologies.
Commenting on the development, the Shareek Program Center emphasized that the agreements align with its ongoing efforts to enable private sector investments in strategic industries. By supporting digital infrastructure projects and fostering collaboration between government entities and national companies, the initiative contributes to accelerating economic transformation and achieving the objectives of Saudi Vision 2030.
