Saudi Arabia Secures $7.4 Billion in Investments to Advance AI and Data Centers at Leap 2025
Saudi Arabia has attracted over $7.4 billion in technology investments during the Leap 2025 summit in Riyadh, solidifying its position as a global hub for artificial intelligence (AI) and data infrastructure. The substantial capital commitments from both local and international companies align with the kingdom’s Vision 2030 strategy, focusing on AI development, data center expansion, and digital transformation.
Key Announcements at Leap 2025
DataVolt’s $5 Billion AI Factory Campus in Neom’s Oxagon
Among the most significant investments is DataVolt’s ambitious plan to develop a $5 billion net-zero AI factory campus in Oxagon, the futuristic floating industrial complex within the Neom mega-city.
The facility, set to be operational by 2028, will be the first of its kind globally, reinforcing Saudi Arabia’s efforts to lead AI-powered industrial innovation.
Rayan Fayez, Deputy CEO of Neom, emphasized that Neom was designed to address future challenges, and the collaboration with DataVolt exemplifies that vision.
Alfanar and Mobily Drive Data Center Expansion
Alfanar Invests $1.4 Billion in 88MW Data Centers
Riyadh-based Alfanar Projects, a leading engineering and technology solutions firm, has committed $1.4 billion to establish an 88-megawatt data center across four locations in two Saudi cities. This investment is expected to enhance cloud computing capabilities and support the growing demand for data storage and processing power.
Mobily Allocates $905 Million for Data Centers and Submarine Fiber Infrastructure
Mobily, one of Saudi Arabia’s top telecommunications companies, has pledged over $905 million to expand data centers and submarine fiber infrastructure. This investment is in line with the company’s goal to position Saudi Arabia as a global digital hub, catering to the increasing need for AI applications, hyperscalers, 5G, and the Internet of Things (IoT).
According to Salman Al Badran, CEO of Mobily, the company is rolling out 39MW of new data center capacity, of which 13MW is already completed and will be commercially available by the first quarter of 2025. The remaining capacity is set to be deployed by 2026.
Zoom, Saudi Railways, and SkyFive Arabia Invest in AI and Connectivity
Zoom Expands Presence with a $75 Million Data Center Investment
Zoom Communications, the globally recognized video conferencing company, announced an additional $75 million investment to support AI expansion in Saudi Arabia. This includes the launch of a dedicated data center to enhance services for businesses, government organizations, and individual users.
Saudi Railways Invests $51 Million in Fiber-Optic Network
Saudi Arabian Railways (SAR) has allocated $51 million to develop a private fiber-optic network, aimed at strengthening digital infrastructure. The company has also received a telecom infrastructure license from the Communications, Space, and Technology Commission, enabling it to lease and manage telecom assets for commercial use.
SkyFive Arabia’s $100 Million Investment in In-Flight Connectivity
SkyFive Arabia, a leader in aviation connectivity, is set to invest $100 million in expanding its network and services across Saudi Arabia, the Middle East, and Turkey. The company aims to provide aircraft with high-speed internet of up to 100Mbps, significantly enhancing passenger connectivity.
Strategic AI and Cloud Computing Partnerships
Several AI and cloud computing collaborations were also announced at Leap 2025, further reinforcing Saudi Arabia’s leadership in technology-driven innovation:
- Hewlett-Packard Enterprise (HPE) will manufacture Wi-Fi 7 networking equipment under its Aruba subsidiary in Saudi Arabia, with a production target of 20,000 units annually.
- Alibaba Cloud has launched an AI Enablement Program in partnership with Tuwaiq Academy and STC Academy to train local AI talent.
- Google introduced new AI-powered digital infrastructure, expanding its footprint in the Middle East’s tech ecosystem.
- Qualcomm confirmed the integration of its ALLaM language model into the Qualcomm AI Cloud, fostering innovation in AI-powered computing.
Saudi Arabia Strengthens Its AI and Tech Leadership
The latest commitments at Leap 2025 follow previously announced deals worth $14.9 billion, primarily focused on AI and digital infrastructure. These include:
- A $2 billion joint venture between Alat, Saudi Arabia’s sustainable technology firm, and Lenovo to establish an advanced AI and robotics-driven manufacturing center.
- A $1.5 billion agreement between Aramco Digital and US AI company Groq, aimed at expanding cloud computing infrastructure in Saudi Arabia.
Conclusion
The Leap 2025 summit has reinforced Saudi Arabia’s technological ambitions, drawing billions in AI investments, data center expansions, and connectivity projects. With cutting-edge AI factories, advanced data centers, and global tech partnerships, the kingdom is rapidly evolving into a global technology powerhouse, driving its Vision 2030 goals forward.
