Saudi Arabia has reinforced its position as a leading global hub in artificial intelligence (AI) technologies, supported by rapid growth in digital infrastructure and strategic investments that enhance the readiness of the national economy for the transition to the intelligent era, in line with the objectives of Saudi Vision 2030.
Saudi Arabia’s attractiveness in this field is underpinned by a growing operational base of data centers, which serve as a key enabler for artificial intelligence and cloud computing applications. Operational capacity has increased from 68 megawatts in 2021 to more than 440 megawatts in 2025, achieving nearly sixfold growth over four years, with an annual growth rate of 52 percent.
Kingdom emerges as a hub for industrial AI applications
Today, Saudi Arabia hosts more than 60 data centers developed by over 20 companies, with investments exceeding SAR16 billion ($4.27 billion), reflecting the expansion of the market and its growing ability to support rising demand for digital services, cloud computing and artificial intelligence applications.
In this context, the Kingdom is emerging as a hub for industrial AI applications through advanced national models that demonstrate the transition toward smart manufacturing. Among these is the experience of Obeikan Investment Group, which has successfully deployed artificial intelligence and Internet of Things (IoT) technologies within its operations through a unified digital platform.
This transformation has enabled the integration of more than 1,200 industrial machines and 280 production lines within a single smart operating environment at Obeikan’s facility, capable of processing up to 50,000 IoT signals per second. This has provided real-time, precise operational visibility, contributing to an increase in operational efficiency of up to 30 percent, reducing data analysis time from hours to minutes and enhancing the ability to predict failures before they occur.
This progress has also supported the group’s business growth, with revenues increasing from approximately $750 million to $1 billion over four years, driven by the integration of digital operations and improved productivity. This model reflects a shift from traditional manufacturing to a data- and AI-driven approach to operational decision-making.
Robust digital infrastructure supports Saudi Arabia’s position as a global hub for AI
Commenting on this progress, Deputy Minister for Technology at the Ministry of Communications and Information Technology Eng. Mohammed Alrubayan affirmed that this model represents the integration of global expertise with national capabilities and reflects the maturity of the Kingdom’s digital ecosystem and its readiness to enable smart, data-driven operating environments.
He noted that the adoption of artificial intelligence and cloud computing contributes to accelerating the development of national industries and enhancing their global competitiveness.
For his part, the president of Microsoft Arabia Turki Badris stated that Obeikan’s experience represents a practical example of how artificial intelligence can drive tangible transformation in the industrial sector by supporting decision-making and improving operational efficiency. He added that the progress witnessed in the Kingdom reflects a rapid shift toward data-driven smart manufacturing powered by advanced technologies.
This growing momentum reflects Saudi Arabia’s strategic direction to strengthen its position as a global hub for artificial intelligence and advanced technologies, supported by robust digital infrastructure, continuous investments and an enabling environment for innovation, further advancing the growth of the digital economy and reinforcing the Kingdom’s role in global value chains.
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