Communications & Technology

Microsoft Confirms Saudi Arabia Datacenter Region Available for Customers to Run Cloud Workloads from Q4 2026

From Q4 2026, Saudi Arabia’s public and private sector organizations can run cloud workloads locally, accessing secure, low latency cloud and AI services to advance Vision 2030 priorities

Riyadh, Gulf Tech News

Microsoft today confirmed that customers will be able to run cloud workloads from its Saudi Arabia East datacenter region from Q4 2026, marking a major milestone in the company’s long-term investment in the country and its commitment to supporting Saudi Arabia’s digital and AI ambitions under Vision 2030.

The new Microsoft Azure cloud datacenter region, located in Saudi Arabia’s Eastern Province, will include three availability zones, each with independent power, cooling, and networking infrastructure. Designed to deliver enterprise-grade reliability, security, and resilience, the region will enable organizations across government and key industries in the Kingdom to run mission-critical cloud and AI workloads with low latency, data residency, and high availability.

This milestone marks the next phase in Saudi Arabia’s AI and cloud journey, reinforcing Microsoft’s long-term commitment to the Kingdom as it accelerates from infrastructure build-out to AI adoption at scale. Since Microsoft shared progress on the datacenter region in December 2024, Saudi Arabia has continued to strengthen its position as an emerging global AI leader, with increasing prominence on the world stage through participation in international forums and growing momentum around trusted, sovereign-ready digital infrastructure.

Over the past year, this progress has been underpinned by close collaboration between Microsoft and Saudi stakeholders. This includes the recent intent announced by Microsoft, the Public Investment Fund (PIF) and Site to explore sovereign cloud services, as well as on-site visits by government and regulatory delegations to Microsoft’s datacenter region – reinforcing alignment on security, compliance, and responsible AI deployment in line with Saudi regulations.

Speaking about the news, H.E. Eng. Abdullah bin Amer Al-Swaha, Minister of Communications and Information Technology, said: “This milestone reflects Saudi Arabia’s continued progress in building advanced, trusted AI infrastructure that supports our ambition to become an AI-enabled nation. We thank Microsoft for its strategic investment in the foundations of the AI economy in Saudi Arabia, enabling the Kingdom to serve as a platform for global progress. Our collaboration with leading global technology partners is strengthening a secure and resilient digital and AI ecosystem that empowers innovation, enhances competitiveness, and supports sustainable national growth.”

Commenting during his visit to Saudi Arabia, Brad Smith, Vice Chair and President of Microsoft, added: “Around the world, governments and institutions are seeking cloud infrastructure that combines innovation with trust, resilience, and respect for national requirements. Our long-term investment in Saudi Arabia reflects a shared commitment to building secure, sovereign-ready digital foundations that enable countries to adopt cloud and AI with confidence. As organizations prepare to run workloads in the Kingdom, our focus remains on supporting responsible technology deployment that strengthens economic growth, public services, and digital stability over the long term.”

As the Kingdom prepares for customers to begin running cloud workloads from the Microsoft Saudi Arabia East datacenter region from Q4 2026, the focus is increasingly on readiness – ensuring organizations have modern data estates, robust governance frameworks, and the skills needed to move from pilots to production. Alongside the datacenter region, Microsoft continues to invest in local capability through initiatives such as the Innovation Hub, commitments to Saudization, and the expansion of its regional headquarters in the Kingdom, supporting national talent development and long-term economic growth.

When available, the Saudi Arabia cloud region will become part of Microsoft’s global cloud infrastructure of more than 70 Azure regions across 33 countries, one of the largest and most trusted cloud platforms in the world – providing Saudi organizations with access to secure, resilient cloud and AI services that meet both national requirements and global standards.

Turki Badhris, President of Microsoft Arabia, added:

“Confirming that customers will be able to run cloud workloads from our Saudi Arabia East datacenter region in Q4 2026 provides organizations with clarity and confidence as they plan their digital and AI journeys. Across Saudi Arabia, we are working closely with government entities, enterprises, and partners to support readiness – from data modernization and governance to skills development – so customers can move from experimentation to production with confidence. This milestone reflects our long-term commitment to enabling meaningful, scalable impact for the Kingdom’s public and private sectors.”

The announcement reinforces the company’s role as a long-term partner to Saudi Arabia’s digital transformation journey, supporting the Kingdom’s ambition to become a global leader in AI adoption by enabling organizations to prepare today for secure, responsible AI at scale.

A growing number of Saudi organizations are already moving from AI experimentation to production, demonstrating how AI can deliver tangible impact when built on trusted cloud foundations, including:

Acwa

Acwa is leveraging Azure AI services and the Microsoft Intelligent Data Platform to optimize large-scale energy and water operations across its global portfolio, with a strong focus on sustainability and resource efficiency. Through advanced analytics, predictive maintenance, and AI-driven optimization through its Monitoring and Prognostics Center, the company has improved water treatment processes, helping conserve the equivalent of tens of thousands of swimming pools of water each day. Following its migration and expanded AI deployment, Acwa has also maintained near-continuous operations, helping ensure reliable delivery of power and water services. Building on this strong foundation, the company is now expanding generative AI use cases – such as contract analysis and RFP generation – laying the groundwork for broader Microsoft 365 Copilot adoption at scale.

Qiddiya Investment Company
Qiddiya Investment Company, one of Saudi Arabia’s largest development projects, has scaled its adoption of Microsoft 365 Copilot, enabling employees to summarize communications, generate content, analyze data, and interact with dashboards using natural language across Microsoft Outlook, Word, Excel, PowerPoint, and Power BI. By building a unified data platform, Qiddiya uses Copilot and Power BI to track progress across hundreds of assets and contractors, providing real-time visibility into invoices, construction status, risks, and delays. With the ability to query terabytes of project data in seconds, Copilot is accelerating decision-making across an ecosystem of more than 700 contractors and tens of thousands of workers. The organization has progressed from early adoption to a broader rollout, investing in training and standardization to embed into daily workflows as the project continues to scale, as shared by Qiddiya’s executive leadership. (Read the CTO perspective here)

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