Saudi Arabia makes significant moves in semiconductor sector with strategic investments

Saudi Arabia makes significant moves in semiconductor sector with strategic investments
Semiconductors, which are essential components for powering AI software, electric vehicles, smartphones, and various advanced technologies, have created intense competition among nations and tech giants. Shutterstock
Short Url
Updated 12 August 2024
Follow

Saudi Arabia makes significant moves in semiconductor sector with strategic investments

Saudi Arabia makes significant moves in semiconductor sector with strategic investments
  • Concentrated supply chain has prompted Saudi Arabia, under its Vision 2030 initiative, to heavily invest in developing local semiconductor manufacturing capabilities

RIYADH: Saudi Arabia is rapidly emerging as a key player in the global semiconductor industry, driven by ambitious initiatives aimed at establishing a strong foothold in this crucial sector.

Semiconductors, which are essential components for powering AI software, electric vehicles, smartphones, and various advanced technologies, have created intense competition among nations and tech giants. Currently, Taiwan leads with 46 percent of global semiconductor foundry capacity, followed by China, South Korea, the US, and Japan.

This concentrated supply chain has prompted Saudi Arabia, under its Vision 2030 initiative, to heavily invest in developing local semiconductor manufacturing capabilities. The goal is to reduce dependency and enhance economic diversification.




Frederic Ozeir, partner and head of automotive and manufacturing industries for India, Middle East, Africa region at Oliver Wyman. Supplied

“Semiconductors are the foundation of modern technology and crucial for economic growth, representing a $500 billion industry today, projected to reach $1 trillion by 2030,” said Frederic Ozeir, partner and head of Automotive and Manufacturing Industries for India, Middle East, and Africa region at Oliver Wyman, in an interview with Arab News.

He added: “For a modern economy, they (semiconductors) are fundamental to nearly all electronics across key sectors like computing, telecom, energy, automotive, and healthcare.”

Ozeir explained that these tech components drive technological innovation, advancing AI, 5G, and autonomous vehicles with significant improvements in speed, efficiency, and capabilities.

Semiconductors also serve as strategic assets for national security, essential for defense systems and infrastructure, with applications ranging from communications equipment to advanced weaponry. Economically, they drive growth, employment, and global competitiveness, similar to oil in energy-dominant economies.

At the forefront of Saudi Arabia’s semiconductor push is the $100 billion Alat project, led by the Kingdom’s wealth fund. Alat aims to address rising domestic demand and position the nation as a global hub for semiconductor innovation and production.

In collaboration with King Abdulaziz City for Science and Technology, Alat is focused on developing local talent and infrastructure necessary for semiconductor design and manufacturing.

“The semiconductor industry represents a transformative opportunity for Saudi Arabia's industrial sector,” emphasized Alat CEO Amit Midha. “Our partnership with KACST is pivotal in advancing our capabilities across key semiconductor technology segments, including power, perception, and processing.”

Saudi Arabia’s semiconductor ambitions extend beyond economic diversification to emphasize a strategic imperative for enhancing national sovereignty and technological independence.

To this end, the Kingdom has launched a billion-riyal investment fund dedicated to semiconductor companies and established the National Semiconductor Hub. At least 50 semiconductor design companies will be established in Saudi Arabia by 2030, supported by a deep tech venture capital fund exceeding SR1 billion ($266 million) as part of a new tech hub.

These initiatives are complemented by efforts to attract global expertise through targeted residency programs aimed at accelerating knowledge transfer and capacity building.

“Saudi Arabia has inherent competitive advantages for building a successful semiconductor industry,” Ozeir noted. “The country also offers competitive utilities and infrastructure, providing reliable energy, clean water, and extensive land. Political stability and government support are also key, with a stable regulatory environment that includes direct incentives and efficient processes,” he emphasized.

Ozeir elaborated that to develop this sector, the nation needs to create a suitable enabling environment by addressing the need for a specialized workforce, including process engineers, material scientists, and precision technicians. “Additionally, the country must develop its industry ecosystem and ensure access to international markets, as local demand for semiconductors is still nascent,” he said.




Talat Hafiz, Saudi-based Economist. Supplied

Talat Zaki Hafiz, a Saudi economist, highlighted the broader economic benefits, stating: “The semiconductor industry will contribute significantly to both the Kingdom’s economy and the industrial sector in general, especially as Saudi Arabia is engaging and promoting several industries that require significant and sizable amounts of semiconductors.”

For instance, Saudi Arabia is advancing into high-tech industries such as electric cars, helicopters, drones, and advanced ships, which require substantial amounts of semiconductors. This shift will drive significant demand for semiconductors, aligning with Vision 2030’s goals of economic diversification and industrial advancement, according to Hafiz.

The urgency of Saudi Arabia’s semiconductor push is underscored by global supply chain disruptions, which have exposed vulnerabilities in dependent economies. By developing a robust semiconductor ecosystem, Saudi Arabia aims not only to secure its supply chain but also to emerge as a leading exporter of high-tech components in the global market.

“The collaboration with KACST represents a cornerstone in Saudi Arabia’s journey towards semiconductor leadership,” said Muneer bin Mahmoud Al-Dosouqi, president of KACST. “It underscores our commitment to fostering a sustainable industrial ecosystem based on advanced technologies and clean energy sources,” he added.

Ozeir outlined the strategic approach for the coming years: “Saudi Arabia should adopt an integrated, cluster-based approach to develop its semiconductor industry. Initially, this involves front-end manufacturing, backward integration into wafer production and design, and then expanding capacity to forward-integrate into leading-edge fabrication and back-end manufacturing in the medium term.”

Oliver Wyman’s partner noted that the Kingdom could also implement supportive policies similar to leading semiconductor nations, combining direct grants for FDI (foreign direct investments), low-interest loans, investment tax credits, and sovereign funds that boost international investments.

“Specialized visa schemes, financial benefits for foreign manpower with expertise, and elite university programs in semiconductor-related fields will be essential to drive this development,” he added.

Saudi Arabia’s proactive approach in the semiconductor sector reflects a strategic vision aimed at enhancing its global competitiveness. 

“Being the largest economy in the Middle East and the fastest-growing economy in the Arab world and internationally, the Kingdom can easily succeed in becoming a competitive player in the global semiconductor market,” Hafiz said.

He added: “It possesses the resources needed for manufacturing semiconductors that can help and support its efforts to play a competitive role and obtain leadership in the global semiconductors market and industry.”

Despite hosting the world’s largest reserves of oil and emerging as a global energy superpower, Saudi Arabia has been very active in pursuing and building capacities in clean energy and reducing the carbon impact on both humanity and the environment.

Hafiz highlighted that the Kingdom is undertaking various actions, such as implementing the Circular Carbon Economy and the Saudi Green Initiative, to achieve its goal of zero neutrality by 2060. He expressed confidence in Saudi Arabia’s capability and eventual success in integrating sustainable practices and clean energy sources into its semiconductor manufacturing processes.

As global demand for high-performance chips continues to surge, the Kingdom’s proactive approach underscores its determination to carve out a prominent place in the global semiconductor landscape. “Several new national initiatives were announced in the Semiconductor Future Forum, confirming the Kingdom’s desire to move forward to develop and localize this industry,” Hafiz shared.

One of these initiatives is the National Capabilities Center for Semiconductors, which aims to “develop and localize the electronic chip industry in the Kingdom,” according to the economist.

In conclusion, Saudi Arabia’s strategic investments and partnerships in the semiconductor industry reflect a bold vision aimed at securing its economic future and asserting its technological prowess on the global stage. As the Kingdom continues to advance its semiconductor capabilities, it stands poised to play a significant role in driving innovation and shaping the next generation of high-tech industries worldwide.

Hafiz expressed his optimism for the future: “I believe that the Kingdom has a bright future in the semiconductor industry over the next decade, simply because it has dedicated its efforts to boost its capabilities in developing such an industry in the Kingdom through building local talents and relying on its longstanding expertise in several industries, especially in high-tech related industries.”


Saudi Arabia, Argentina explore new investment opportunities

Saudi Arabia, Argentina explore new investment opportunities
Updated 10 February 2025
Follow

Saudi Arabia, Argentina explore new investment opportunities

Saudi Arabia, Argentina explore new investment opportunities
  • Argentine Embassy, RCCI host seminar
  • Framework offers incentives, legal protections, stability measures to encourage large-scale investments

RIYADH: The Argentine Embassy in collaboration with the Riyadh Chamber of Commerce and Industry hosted a seminar at the UN World Tourism Organization’s regional office in Riyadh on Monday, bringing together senior government officials and business leaders from both nations to explore trade and investment opportunities.

The seminar was held on the sidelines of an official visit by Argentina’s Foreign Minister Gerardo Werthein and focused on the country’s newly launched investment framework — the New Legal Framework for Major Investments in Argentina, also known as RIGI — and opportunities available to Saudi companies.

The RIGI program, which offers the global investment community access to projects in key sectors of the Argentine economy, is designed to attract large-scale international investments by offering significant incentives across key sectors, including mining and energy, infrastructure and tourism, technology and advanced industries and manufacturing.

Delegates and audience at the seminar organized by Argentine Embassy. (AN photo by Rashid Hassan)

It provides regulatory stability, tax incentives, and long-term predictability for foreign investors, ensuring that businesses operating in Argentina can expand with confidence and access high-growth opportunities.

Daniel Gonzalez Casartelli, Argentina’s deputy minister of energy and mining, said at the seminar that the objectives of the investment incentive scheme were to develop the economy, increase competitiveness, boost exports, and generate employment.

He said the incentives on exchange rate included incremental free exports and unrestricted foreign exchange access for equity and debt repayments. On tax it offered accelerated depreciation; tax loss carryforward without expiration date; income tax decrease to 25 percent compared to a general rate of 35 percent; VAT exemption for capex; and tax on dividends reduced to 3.5 percent after seven years of joining the RIGI, with the general rate at 7 percent.

Facundo Vila, ambassador of Argentina with guests after the seminar in Riyadh. (AN photo by Rashid Hassan)

The incentives on customs include full exemption from export duties, starting in the third year; exemption from tariffs on capital goods imports; and tariff and import quota exemptions for the value chain of RIGI projects.

Companies that adhere to the RIGI will benefit from a 30-year stability period, and evaluation of RIGI applications is guaranteed within 45 business days.

The minimum investment amount is $200 million, and companies should invest at least 40 percent of it in the first two years of the project.

Speaking to Arab News, Matias Javier Mana, the undersecretary of international financial relations for development at the Argentine Ministry of Economy, and who is part of the delegation, said: “We came with a very important delegation to present to Saudi investors very specific incentives, (a) large investment incentive regime that is part of our macro-economic program that will show the investors how we will give them benefits and also some certainty and regulation for them to have a safe environment to invest in Argentina.

“Those incentives include goals from tax reductions to customs, facilitated treatments and also legal protections, international arbitration and also some specific regimes for all the supply chains that are somehow related to the project presented.”

He added: “It’s a regime that only considers projects or investments of over $200 million. The main sectors that we have identified and that are acceptable … within this regime are oil and gas, midstream mining, renewable energy, tourism, AI, and nuclear energy.

“As for us, all these sectors represent what we intend to develop and all the potential opportunities that Argentina can offer to international investors; in this case Saudi Arabia.

“This is all within the mission that we are currently undergoing in Saudi Arabia, led by our minister of foreign affairs with the Saudi Arabian government (which is) in order for us to design a road map of bilateral exchanges and strengthen the cooperation and relationship between our countries.”

Demian Reidel, the chief of advisers to the Argentine president, and who is also a member of the visiting delegation, told Arab News: “I oversee a wide portfolio with the main interest in AI and nuclear energy, and I am here with the delegation to facilitate everything that covers these interests.”

Facundo Vila, the ambassador of Argentina to the Kingdom, told Arab News: “The delegation is here about the new incentives regime for large-scale investments in Argentina.

“They include the secretaries of energy and mining, because those are the two key sectors in which we think Argentina has a lot to offer.

“The presentation focused on the main advantages that investors and prospective foreign investment would enjoy in Argentina.

“We believe it (the RIGI) is a very good opportunity in areas in which Saudi has a lot of expertise, oil and gas for example.

“We have a big oil base in Argentina but that needs to be worked on and they need capital infrastructure to make it work.”

 


Closing Bell: Saudi benchmark index closes in green 

Closing Bell: Saudi benchmark index closes in green 
Updated 10 February 2025
Follow

Closing Bell: Saudi benchmark index closes in green 

Closing Bell: Saudi benchmark index closes in green 

RIYADH: Saudi Arabia’s Tadawul All Share Index increased on Monday, gaining 2.58 points, or 0.02 percent, to close at 12,471.72.        

The total trading turnover of the benchmark index was SR5.93 billion ($1.58 billion), as 72 stocks advanced, while 159 retreated.             

The MSCI Tadawul Index also increased by 0.68 points, or 0.04 percent, to close at 1,550.94.         

The Kingdom’s parallel market, Nomu, gained 12.11 points, or 0.04 percent, to close at 31,426.76. This comes as 37 stocks advanced while 52 retreated.          

Al-Babtain Power and Telecommunication Co. was the best-performing stock of the day, with its share price surging by 4.44 percent to SR47.        

Other top performers included East Pipes Integrated Co. for Industry, which saw its share price rise by 3.75 percent to SR160.60, and Makkah Construction and Development Co., which saw a 3.52 percent increase to SR111.80.        

Al Majed Oud Co. rose 3.32 percent to SR168, while Allied Cooperative Insurance Group gained 3.26 percent to SR17.76.    

Al Yamamah Steel Industries Co. saw the steepest decline of the day, with its share price easing 6.32 percent to close at SR36.30.    

Saudi Fisheries Co. fell 3.40 percent to SR53.90, while Leejam Sports Co. dropped 4.84 percent to SR169.20.    

Thimar Development Holding Co. also faced a loss with its share price dipping 2.75 percent to SR56.50, while Shatirah House Restaurant Co. saw a 3.12 percent to settle at SR22.94.     

On the announcements front, Leejam Sports Co. reported a 13 percent year-on-year growth in revenue for the financial year 2024, reaching SR1.50 billion. Net profit also surged by 28 percent, amounting to SR456 million compared to SR356 million in 2023.   

The increase in revenue was driven by a 10 percent rise in subscription and membership revenue and a 31 percent increase in income from paid programs, including personal training and swimming.   

The company’s revenue growth trailed historic trends partly due to changes in the subscription and brand mix.    

Leejam also recorded notable one-off gains in 2024, including SR92 million from the sale of three land plots in Riyadh and SR18 million from favorable rent negotiations related to centers in Ras Al-Khaimah, UAE.  

Despite the recorded gains, Leejam was among TASI’s worst performers.  

Saudi Electricity Co. has announced plans to hold meetings with fixed-income investors starting Feb. 10 regarding a potential issuance of US dollar-denominated sukuk under its international sukuk program.  

The issuance will be conducted through a special-purpose vehicle and offered to eligible investors in Saudi Arabia and internationally, subject to market conditions.   

The sukuk will be senior unsecured and issued in compliance with relevant regulatory approvals and laws.  

SEC has appointed a consortium of global and regional financial institutions, including HSBC, Standard Chartered Bank, BNP Paribas, and others, as joint lead managers for the potential offer.   

The proceeds from the issuance will be used to support SEC’s general corporate purposes, including capital expenditures, and to fund projects aligned with its Green Sukuk Framework.  

The final terms, including the value of the offer, will be determined based on market conditions and SEC’s requirements.  

SEC’s share price saw a slight 0.23 percent increase on Monday to reach SR17.30.


US-based ServiceNow to launch data centers in Saudi Arabia in 2026

US-based ServiceNow to launch data centers in Saudi Arabia in 2026
Updated 10 February 2025
Follow

US-based ServiceNow to launch data centers in Saudi Arabia in 2026

US-based ServiceNow to launch data centers in Saudi Arabia in 2026
  • ServiceNow aims to build cloud infrastructure and develop essential skills to support its customers and partners better
  • Company announced major partnerships sealed during LEAP 2025 with Salam and stc

RIYADH: US-based software firm ServiceNow is set to launch data centers in Saudi Arabia in 2026, according to its Europe, the Middle East, and Africa president.

In an interview with Arab News on the sidelines of the second day of LEAP 2025, taking place in Riyadh from Feb. 9—12, Cathy Mauzaize revealed the date for the facilities, with the plans to develop them in the Kingdom announced at last year’s event.

The EMA president also talked up ServiceNow’s ambitions to build cloud infrastructure and develop essential skills in Saudi Arabia to support its customers and partners better.

ServiceNow’s plan falls in line with Saudi Arabia’s National Strategy for Data and Artificial Intelligence, which aims to train 40 percent of the workforce in essential skills to combat data and AI illiteracy and develop a talent pool of 20,000 data and AI specialists.

It also aligns with the strategy’s target of attracting SR75 billion ($19.99 billion) in local and foreign investments, as well as supporting over 300 startups to encourage entrepreneurship.

Speaking on the timeline of the date centers, Mauzaize said: "We’re going to, crossing my fingers, announce the services in 2026.”

She added that it is “time for us to build the data centers and make them available for our customers and partners here, in the Kingdom, but also, at the same time, we are investing a lot in creating skills, because if we don’t have skills, and especially in the young people, it’s going to be difficult for us to sustain the growth.” 

During the interview, Mauzaize went on to highlight that AI and generative AI will have a major impact on the EMA economy.

“If you look at the numbers that IDC (International Data Corporation) predicts for EMA and how much wellness or how much, you know, it impacts on the economy, it will have $5 trillion by 2030,” she said.

“But if you go into Saudi Arabia, 52 percent of the CEOs say AI is top of mind and 79 (percent) are saying: ‘we know that’s going to have a material impact on the way we run our business,’” the EMA president added. 

Mauzaize also underlined major partnerships sealed during LEAP 2025 with Salam, a leading digital infrastructure provider in the Kingdom, and the Saudi Telecom Co.
 
“Salam — it’s a big partnership to help them run on a much faster way, their own operation and to go after a brand-new set of customers in SME space. We have this vision together that, hey, let’s go modernize, help you develop your top line proper, new services embedded into platform and fuse with AI as a service to your end customer, and let’s together go after the small and medium business,” she said.
 
“STC, we are announcing again a very strategic partnership to help them on their modernization journey, but also as a partner to go to market together. We are very, very proud of those two announcements and we believe that those two will help us accelerate significantly how we get into the Kingdom with success,” the EMA president added.

Mauzaize explained that ServiceNow is the only AI platform designed specifically for business and digital transformation.

“We have a platform that combines data, the ability to collect all the data and to connect to any source of system, structured data and unstructured data. We are having AI at the core and now Gen AI, generative AI, that has ability to interact with the human touch and augment human and collaborate with human,” she said.

The EMA President added: “And then we have the workflow, and so the workflow are our ability to digitalize processes. If you think about it in any company anything you do is a process and then is a workflow, so you can either do workflow manually or do a workflow digitally and automate them.”

Held under the theme “Into New Worlds,” LEAP 2025 aims to expand business networking and investment opportunities in the tech sector.
 
The event plays a key role in Saudi Arabia’s ambition to become a global technology hub, aligning with its Vision 2030 plan to diversify the economy. As part of this initiative, the Kingdom has pledged $100 billion toward advancing its technology sector.


Saudi virtual hospital at forefront of AI integration, minister says

Saudi virtual hospital at forefront of AI integration, minister says
Updated 10 February 2025
Follow

Saudi virtual hospital at forefront of AI integration, minister says

Saudi virtual hospital at forefront of AI integration, minister says
  • Seha Virtual Hospitalis reshaping patient care by eliminating geographical limitations and integrating advanced AI solutions
  • Kingdom’s e-hospital is transforming patient care by providing nationwide access to advanced consultations

RIYADH: Saudi Arabia’s Seha Virtual Hospital, recognized by the Guinness World Records as the world’s largest online medical initiative, is leading the way in transforming healthcare accessibility and efficiency through digital innovation.

The facility, linked to over 200 hospitals across the Kingdom, is reshaping patient care by eliminating geographical limitations and integrating advanced artificial intelligence solutions.

Speaking with Arab News on the sidelines of the LEAP 2025 tech conference in Riyadh, Abdullah Al-Issa, Saudi Arabia’s deputy minister for e-health and digital transformation, highlighted the government’s commitment to leveraging technology to enhance health care services. 

“Digital is no longer a luxury; it is a necessity. The ministry has prioritized digitization to deliver high-quality services to beneficiaries, creating a deputyship responsible for strategy, enterprise architecture, and implementation of digital solutions,” Al-Issa stated.

Bridging gaps with Seha Virtual Hospital

The Kingdom’s e-hospital is transforming patient care by providing nationwide access to advanced consultations.

“For rare specialties, patients no longer need to travel long distances to see a doctor. With Seha Virtual Hospital, consultations can happen remotely, ensuring timely diagnosis and treatment,” Al-Issa explained.

The establishment also powers initiatives like the Tele-ICU, which enables specialized consultants to assess critical patients remotely.

“Previously, patients requiring niche expertise had to be transferred via emergency air transport. Now, they can be treated in their hometown hospitals, reducing logistical burdens and improving outcomes,” he added.

AI-driven health care revolution

Saudi Arabia’s Ministry of Health has been at the forefront of artificial intelligence integration, using technology to enhance diagnostics and preventive care. “For two years, we have utilized AI in Seha Virtual Hospital, including AI-driven x-ray solutions that detect breast cancer and other conditions, assisting consultants by flagging abnormalities before they even examine scans,” said Al-Issa.

AI also plays a pivotal role in large-scale preventive health care. “We have screened over 30 million people for non-communicable diseases like diabetes and hypertension, categorizing them into high-, medium-, and low-risk groups. Those at high risk receive further assessment and early intervention, aligning with Saudi Vision 2030’s goal of increasing life expectancy to 80 years,” he noted.

Partnerships and cybersecurity in digital health

Collaboration with the private sector remains a cornerstone of Saudi Arabia’s health care strategy. “We welcome partnerships with innovators and technology firms to enhance services. Working alone isn’t enough— we must collaborate to maximize technology’s benefits for patients, doctors, and the entire ecosystem,” Al-Issa emphasized.

With the rapid digitalization of health care, cybersecurity has become a top priority. “We are fully aligned with the National Cybersecurity Authority’s recommendations to safeguard patient data and prevent misuse of technology,” he added.
 
Nafees: the unified medical record system

The Ministry of Health is also advancing health care integration through Nafees, a unified medical record system that consolidates patient health data across providers.

“Patients can now access their medical history through the Sehhaty app, while health care providers can view past diagnoses and test results, eliminating redundant procedures and enhancing efficiency,” Al-Issa said.

“We are midway through this project, with many providers already connected and more to follow in the coming years,” he added.


Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn
Updated 10 February 2025
Follow

Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn
  • Facility has capacity of 1.5 gigawatts and will be built in Oxagon’s industrial quarter and powered entirely by renewable energy
  • First phase, a 300-megawatt facility, is set to be operational by 2028

RIYADH: Saudi Arabia is set to host one of the world’s largest artificial intelligence data centers following a $5 billion investment by DataVolt in Oxagon, the industrial city within NEOM.

The facility, with a capacity of 1.5 gigawatts, will be built in Oxagon’s industrial quarter and powered entirely by renewable energy.

Speaking to Arab News at the LEAP 2025 tech conference in Riyadh, Oxagon Executive Director Howard Wu highlighted the significance of the project’s architectural design and AI workload management.

“This marks a very important step because you really have a data center — in the case of our partnership with DataVolt — that is building the entire facility from the ground up. So, it’s really an end-to-end infrastructure, built from the energy grid to the building, to the AI servers, to the file system, operating system, runtime, and application,” he said.

Wu emphasized that the data center will be groundbreaking in scale and sustainability.

When completed, he said it will be one of the world’s largest at 1.5GW and will run entirely on renewable energy.

The first phase, a 300-megawatt facility, is set to be operational by 2028. Due to the energy-intensive nature of computing and cooling systems, Wu explained that data centers are typically measured by power capacity.

“On a site-wide level, we would say it’s a 300 MW site. You have huge amounts of power to run them, and because of the density of the chips, they generate a huge amount of heat. Then you have to cool them to bring the temperature down,” he said. 

As demand for AI-driven data processing and cloud computing continues to surge — fueled by platforms like TikTok and Instagram — Oxagon’s AI data center is expected to play a pivotal role in the region’s digital transformation.

“As this demand continues to grow, we certainly see a strong growth market within the region, but also globally,” the executive said.

He added that while computing power continues to advance in line with Moore’s Law, technological innovations allow for upgrades without a proportional rise in energy consumption, making power capacity the key metric for measuring data centers.

The decision to partner with DataVolt was driven by the company’s financial commitment, technological expertise, and innovative approach to data center architecture.

Wu highlighted the key qualities that made DataVolt an ideal partner, stating that the company brought significant capital investment and a strong vision. “The third part is their innovative thinking, along with all the architecture and engineering,” he said. He added that combining these qualities made it extremely difficult to find a partner that met all three major criteria.

Once completed, the AI data center will enhance Oxagon’s growing technology ecosystem, benefiting its tenants and partners while reinforcing Saudi Arabia’s position as a global leader in digital infrastructure.