February 6, 2023, RIYADH: KINGDOM OF SAUDI ARABIA – Microsoft today shared its intention to invest in a new cloud datacenter region in the Kingdom of Saudi Arabia. The announcement is part of the company’s continued efforts to empower public and private organizations around the world with intelligent, trusted, enterprise-grade cloud services to realize their digital transformation ambitions.
Microsoft is announcing this intention to deliver new investments in local infrastructure in response to growing customer demand for cloud services and data residency in Saudi Arabia from global enterprises, local businesses, and civilian public sector organizations. The intent announcement was shared by Microsoft at the international technology conference LEAP 2023, held in Riyadh.
At launch, the new cloud datacenter region will offer enterprise-grade reliability and performance combined with customer privacy, data residency, and high-speed latency standards in Saudi Arabia on par with the rest of Microsoft’s global cloud infrastructure – one of the largest and most secure in the world. The investments will be consistent with Microsoft’s commitment to protecting fundamental rights and include a focus on responsible cloud practices including security, digital safety, privacy, compliance, and transparency, as well as adherence to Microsoft’s values and principles.
“This new datacenter region will provide organizations, enterprises, and developers in the Kingdom and around the world with access to scalable, highly available, and resilient cloud services while addressing their data residency, security, privacy, and compliance needs. From empowering organizations to digitally transform and co-innovate, to creating economic impact and transforming industries, we look forward to continuing to enable these transformational journeys,” said Samer Abu-Ltaif, Corporate VP and President, Microsoft Central and Eastern Europe, Middle East and Africa.
“This important step is consistent with the steps taken by the Kingdom to accelerate its digital transformation and strengthen its position as an innovation hub,” said His Excellency the Vice Minister of Communications and Information Technology, Eng. Haitham bin Abdul Rahman Al-Ohali. “The datacenter will also provide huge opportunities for startups and small and medium enterprises looking to enhance their competitiveness and leverage the advancements of the Fourth Industrial Revolution to develop innovative solutions. This supports the Kingdom’s Vision 2030 goal of strengthening the role of the communications and information technology sector in creating a digital society, digital government, a thriving digital economy, and an innovative future for the Kingdom.”
“Today’s announcement reflects Microsoft’s longstanding commitment to Saudi Arabia and its ambitions for digital transformation,” says Thamer Alharbi, President, Microsoft Arabia. “Our datacenter region will enable even more enterprises and industries in Saudi Arabia to benefit from a trusted cloud framework which protects the privacy of organizations’ data to the highest standard.”
The arrival of Microsoft’s cloud region in Saudi Arabia will play a significant role in driving economic growth. According to an IDC study*, Microsoft, its partners, and cloud-using customers will together generate around $24 billion in new revenues above the 2022 level over the next four years. According to the same study, Microsoft’s partner ecosystem will earn about $8 (USD) for every $1 (USD) of Microsoft cloud-generated revenue by 2026, bringing tremendous opportunities for partners in the Kingdom to grow their revenues, local content contributions, and customer bases.
*IDC Info Snapshot, sponsored by Microsoft, The Microsoft Cloud Dividend Snapshot: Saudi Arabia, Doc. #US49275222, June 2022