Technology giant Oracle has announced plans to invest US$1.5 billion to meet cloud computing demand in Saudi Arabia.
Its plans include opening a third public cloud region in Saudi Arabia, located in Riyadh, joining the existing Oracle Cloud Jeddah Region and the planned Oracle Cloud Region to be located in the futuristic city of NEOM.
To quickly meet the requirements of its growing cloud business in Saudi Arabia, Oracle says it will also expand the capacity of the Oracle Cloud Jeddah Region.
Oracle says it will work with the Ministry of Communications and Information Technology (MCIT) and the Communications and Information Technology Commission (CITC) to establish a commercial and operational model for an additional cloud region in Saudi Arabia that is aligned with Saudi government requirements and local data residency regulations. Oracle will also work with MCIT to help foster the development of Saudi Arabia’s cloud industry.
In its announcement of these plans Oracle quotes IDC, which estimates that public cloud spending in Saudi Arabia will increase at a CAGR of 26.8% over the coming years to reach US$3.1 billion in 2026.
Oracle says it has also committed to powering all worldwide Oracle Cloud Regions with 100% renewable energy by 2025.
This investment announcement may be timely. Reuters points out that Saudi officials have been pressing international companies to invest in the kingdom and move their regional headquarters to Riyadh in order to benefit from government contracts.