Saudi Arabia is ramping up its artificial intelligence (AI) efforts, particularly after Donald Trump’s recent trip to the region. DataVolt, a Saudi datacentre operator, has decided to sign a major deal with US firm Supermicro due to Trump’s administration’s tariffs and export restrictions on AI chips. This partnership will support DataVolt’s $20 billion investment in AI datacentre technology, securing top-notch graphics processing units (GPUs) essential for AI workloads.
Rajit Nanda, CEO of DataVolt, stated, “Partnering with Supermicro guarantees us a US-made supply chain for critical GPU systems and positions DataVolt to accelerate our investment plans.” Supermicro plans to expedite the delivery of its advanced GPU systems, aiming for efficiency in DataVolt’s hyperscale, renewable AI datacentres. Their cutting-edge hardware employs liquid cooling, which can slash power costs by up to 40%. Charles Liang, President and CEO of Supermicro, expressed excitement about this collaboration and its potential to integrate sustainable technology.
On top of this, various major tech firms are committing substantial investments to enhance AI in Saudi Arabia. DataVolt, alongside Google, Oracle, Salesforce, AMD, and Uber, is looking at a combined investment of $80 billion in groundbreaking technologies. Oracle, for instance, aims to funnel $14 billion into cloud and AI tech over the next decade, with CEO Safra Catz citing Trump’s leadership as a pivotal factor making this possible.
During Trump’s visit, Humain, part of Saudi Arabia’s Public Investment Fund, announced a $10 billion partnership with AMD to build a strong AI infrastructure linking Saudi Arabia and the US. This venture will incorporate hyperscale datacentres, sustainable energy systems, and global fibre networks while AMD provides the necessary computing power.
Tareq Amin, CEO of Humain, emphasized that this initiative seeks to democratize access to AI, suggesting that innovation should be limited only by imagination rather than infrastructure.
Saudi Arabia’s aspirations to elevate its AI landscape have attracted further US tech firms to invest in the kingdom. Accenture reported that generative AI has the potential to boost Saudi Arabia’s GDP by around $42.3 billion by automating numerous jobs. In collaboration with Google Cloud, Accenture aims to enhance local AI and cloud capabilities, showcasing their commitment with a joint centre of excellence for generative AI.
Salesforce also announced a $500 million investment, establishing a regional headquarters in Riyadh and partnering with Amazon Web Services for their next-generation platform, Hyperforce. This initiative allows global customers to run workloads in compliance with local regulations.
Abdullah Alswaha, Saudi Arabia’s Minister of Communications and Information Technology, expressed optimism about Salesforce’s expansion, which aligns with the kingdom’s Vision 2030 goals for innovation.
While the US investment surge highlights the promising outlook for AI in Saudi Arabia, the kingdom faces hurdles in fulfilling these ambitions. A report from the Carnegie Endowment for International Peace points out a gap in skilled labor as the country strives to build a workforce in high-demand sectors like AI, green technology, and fintech.
