Saudi Arabia Can Become Global AI Hub Connecting East and West: Minister

At LEAP East 2026, Communications Minister Abdullah Alswaha said the Kingdom is building the compute, capital, and digital infrastructure to become a strategic hub for global AI investment.

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  • [Image: Chetan Jha/MITSMR Middle East]

    Saudi Arabia is making artificial intelligence infrastructure a central part of its long-term economic strategy. Minister of Communications and Information Technology, Abdullah Alswaha, has stated that the Kingdom possesses the essential components needed to become a global hub for computing, data infrastructure, and AI investment.

    Speaking at the opening of LEAP East 2026 in Hong Kong, Alswaha said Saudi Arabia is leveraging large-scale investments in digital infrastructure to strengthen its role as a bridge between Asian technology ecosystems and global markets. The remarks reflect the Kingdom’s broader ambition under Vision 2030 to diversify its economy while competing for a larger share of the rapidly expanding AI value chain.

    Rather than focusing solely on AI adoption, Saudi Arabia is increasingly emphasizing the physical infrastructure underpinning the technology—including data centers, power capacity, semiconductors, and cloud computing.

    Alswaha said the Kingdom’s digital economy has expanded by 75% over the past eight years, reaching $139 billion (SAR 522 billion). The non-oil digital economy now accounts for 16% of GDP, underscoring the sector’s growing importance as Saudi Arabia seeks to reduce its dependence on hydrocarbons.

    The minister highlighted data center expansion as a key competitive advantage. Saudi Arabia currently operates 467 MW of data center capacity, representing nearly half (47%) of the Middle East and North Africa’s total operational capacity. Looking ahead, the Kingdom plans to develop 6.9 GW of data center capacity by 2034, including 3 GW by 2030, supported by 12.8 GW of available electricity generation capacity.

    The emphasis on infrastructure is a part of the global AI competition, where access to energy, chips, and computing capacity is as important as developing AI models.

    Alswaha also framed Saudi Arabia’s ambitions within the broader Asian technology ecosystem. He noted that eastern economies collectively represent a $34 trillion (SAR 127.5 trillion) economy and a $10 trillion (SAR 37.5 trillion) digital economy, while accounting for much of the world’s semiconductor production and AI-related intellectual property. 

    Positioning the Kingdom between East and West creates opportunities to attract global technology companies seeking regional infrastructure and investment destinations, he said. 

    Beyond infrastructure, Alswaha pointed to workforce development as another component of the Kingdom’s AI strategy. Women’s participation in Saudi Arabia’s ICT workforce has increased from 7% to 35% over the past eight years, which he said now exceeds the average participation rates in both the European Union and Silicon Valley.

    Concluding his address, Alswaha said Saudi Arabia now possesses what he described as the three critical ingredients for the AI era—compute, customers, and capital—and that technology companies from Asia have already begun expanding their investments in the Kingdom, reinforcing its ambition to become a regional AI infrastructure hub.