Saudi Arabia is actively redefining its role in the global data landscape, aiming to transition from a mere transit point to a hub for artificial intelligence (AI) infrastructure. With a national strategy targeting up to 1.5 gigawatts (GW) of data center capacity by 2030, the Kingdom is leveraging its extensive fiber network and strategic partnerships to enhance its capabilities in hosting and processing AI workloads, according to Eng. Amjad Arab, Chief Carrier & Wholesale Officer at Salam.
Salam, which operates a 19,000+ km fiber network connecting key international landing stations in Al Khobar and Jeddah to six data centers across the Kingdom, is central to this transformation. Arab emphasized that achieving the ambitious infrastructure goals will require not just capital investment but also resilient terrestrial routes and robust public-private partnerships. He noted that the success of these initiatives hinges on measurable business outcomes rather than merely expanding infrastructure.
Transforming Connectivity into AI Infrastructure
Arab highlighted the necessity for a paradigm shift in how digital infrastructure partnerships are approached. He stated, “No organisation scales alone at the national level when the goal is to rewire an entire economy for AI.” The digital economy in Saudi Arabia currently contributes approximately SAR 495 billion to the GDP, and the Kingdom ranks high in various global digital indices. However, with a staggering 77% of transformation projects failing, Arab stressed the importance of strategic partnerships that share accountability for outcomes.
Saudi Arabia’s unique assets, including its land, power, and connectivity, position it favorably to attract AI infrastructure investments. The National Data Center Strategy aims for significant capacity growth, with the AI data center market projected to reach USD 1.74 billion by 2030. The Kingdom’s ICT market is also expanding rapidly, with a projected growth from USD 65.45 billion in 2026 to USD 101.3 billion by 2031. Arab pointed out that while the foundations are strong, achieving the 1.5 GW target will depend on foreign investment and collaboration between public and private sectors.
Driving Demand Beyond AI Training
Looking ahead, Arab anticipates that the next wave of demand for AI infrastructure will stem from operational deployments rather than just training clusters. He cited examples such as AI-driven CCTV analytics and edge computing applications that enhance real-time decision-making capabilities. “Achieving operational efficiency is the top outcome of digital investment,” he noted, emphasizing the need for cloud solutions that scale effectively and integrate AI into everyday operations.
Salam’s extensive fiber network not only supports cloud hosting but also ensures low-latency services essential for enterprise and government applications. The geographic diversity provided by landing stations on both the Red Sea and Arabian Gulf coasts enhances resilience, which is increasingly becoming a critical factor for businesses relying on cloud-based services.
Challenges Ahead for AI Infrastructure Development
Despite the promising outlook, Arab acknowledged significant challenges that must be addressed to turn infrastructure investments into reliable AI services. He referenced studies indicating that a large percentage of digital transformation initiatives fail to deliver long-term results, with many proofs of concept never reaching production. The Kingdom faces a dual challenge: on one hand, a significant portion of small and medium enterprises (SMEs) have yet to adopt e-commerce, while on the other, reliable enterprise connectivity remains a prerequisite for scaling operations.
Arab concluded by stressing the need for connectivity partners who can deliver measurable outcomes and accountability, rather than just access. As Saudi Arabia embarks on this ambitious journey to become a leading AI infrastructure hub, the focus will need to shift from mere connectivity to creating a resilient and scalable digital ecosystem.
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