A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 9, 2025.
Under the agreement, the three parties will assess opportunities to deploy secure, locally hosted cloud infrastructure that meets the Kingdom’s regulatory and data-residency requirements for government entities, financial institutions, and other organizations handling sensitive information.
The proposed sovereign-cloud offering would be fully operated and supported from data centers located inside Saudi Arabia, providing customers with dedicated computing resources isolated from Microsoft’s global public cloud network while maintaining access to the latest Azure services, artificial intelligence tools, and productivity platforms.
The collaboration aligns with Saudi Arabia’s Vision 2030 digital transformation goals and Cloud First Policy, which encourage the adoption of advanced cloud technologies across public and private sectors to enhance efficiency, innovation, and economic diversification.
PIF, as the Kingdom’s primary sovereign wealth fund, continues to invest in strategic technology partnerships aimed at building national digital capabilities and attracting global technology leaders to establish long-term operations in the country.
SITE, a PIF-owned company focused on developing information and communication technology infrastructure, will contribute local expertise in regulatory compliance, cybersecurity standards, and data-center operations throughout the exploration phase.
Microsoft has established similar sovereign-cloud arrangements in several countries worldwide, allowing governments and regulated industries to benefit from hyperscale cloud innovation while satisfying local data-sovereignty obligations.
The memorandum remains non-binding, with detailed technical, commercial, and operational frameworks to be developed during subsequent discussions. No specific timeline for potential service launch or investment amounts has been disclosed at this stage.
The agreement reinforces ongoing cooperation between Microsoft and Saudi entities, building on existing partnerships in areas such as artificial intelligence training, skills development through the Microsoft AI Academy, and broader digital-skills initiatives targeting Saudi youth and professionals.
By combining PIF’s strategic investment capacity, SITE’s national technology mandate, and Microsoft’s global cloud expertise, the initiative seeks to accelerate the Kingdom’s transition to a knowledge-based digital economy while ensuring full control over critical data assets remains within Saudi borders.
