Posted inCloudInfrastructure

Google’s new cloud region to add $109 billion to Saudi Arabia’s economy

Located in Dammam, Google’s new cloud region is estimated to support the creation of 148,600 jobs in 2030 alone

Google Cloud has officially announced the opening of its new cloud region in Dammam, Saudi Arabia. This strategic expansion aims to deliver high-performance, low-latency Google Cloud Platform services, catering to a diverse range of clients from public sector organisations and large businesses to small and medium-sized enterprises (SMEs) and startups across Saudi Arabia and the wider Middle East.

The announcement was made during an official launch event, attended by key figures from Google Cloud, including CEO Thomas Kurian, Abdul Rahman Al Thehaiban, Managing Director for the Middle East, Turkey, and Africa, Tarek Khalil, Director for the Middle East and North Africa, and Bader Al Madi, Saudi Arabia Country Manager. The event brought together senior government officials, chief innovation officers, chief technology officers, and decision-makers from the tech community.

This move aligns with Google Cloud’s commitment to supporting Saudi Arabia’s Vision 2030 goals, reflecting a substantial investment in the region’s technology landscape. According to research commissioned by Google Cloud and conducted by Access Partnership, the new cloud region is anticipated to contribute a cumulative $109 billion to the Saudi economy between 2024 and 2030, with potential economic effects supporting the creation of 148,600 jobs by 2030.

Eng. Abdullah Al Swaha, Saudi Minister of Communications and Information Technology (MCIT), expressed confidence in Google Cloud’s investment. He noted, “Google Cloud’s investment is a strategic move and we are confident that it will bolster the Kingdom’s regional computing hub ambitions, as well as supporting our digital entrepreneurship drive and the acceleration of AI-based innovation and business models across the public and private sectors.”

Thomas Kurian, CEO of Google Cloud, highlighted the transformative impact of AI. He said, “We are experiencing one of the most significant technological shifts in history, where AI is creating entirely new ways for organisations to solve problems, engage customers, and work more efficiently. Our new cloud region in Saudi Arabia will help both public and private sector organisations make the most of their data, leverage generative AI solutions, and create a culture of innovation underpinned by a modern, sustainable infrastructure with built-in security.”

The new Dammam cloud region is expected to play a vital role in supporting the growth ambitions of 1.2 million SMEs in Saudi Arabia. To further encourage startup growth, the Google for Startups Cloud Program will be available in the country in the first quarter of 2024, providing eligible startups with access to technical support, mentors, industry experts, and up to $200,000 in cloud credits over the first two years.

Google Cloud Platform Services are now accessible to Saudi Arabia-based customers through CNTXT, a digital transformation company and Google Cloud’s exclusive reseller in the region. Abdullah Jarwan, CEO of CNTXT, said, “CNTXT is delighted to partner with Google Cloud to help bring Google Cloud Platform Services to businesses in the Kingdom, and to jointly work with the ecosystem of Google Cloud partners that will enable and accelerate the digital transformation and growth of organisations across local public and private sectors.”

Abdul Rahman Al Thehaiban, Managing Director, Middle East, Turkey and Africa, Google Cloud, said, “Google Cloud stands as one of the pioneering hyperscalers to launch a cloud region in the Kingdom of Saudi Arabia, a clear manifestation of our commitment to leading the digital evolution of the region.”

Bader Al Madi, Saudi Arabia Country Manager, Google Cloud, outlined the company’s goal, saying, “We aim to support the digital empowerment of every business, and every individual in Saudi Arabia. By providing accessibility to cloud technologies and AI to the Saudi market, we are actively paving the path for the kingdom’s digital transformation using the latest digital technologies to optimise business processes and customer experiences to meet rapidly-changing business and market dynamics.”

The new Dammam cloud region is now part of Google Cloud’s global network of 39 cloud regions and 118 zones, bringing cloud services to over 200 countries and territories worldwide. Organisations in the region will benefit from key controls ensuring high security, data residency, and compliance with local regulatory standards, including specific data storage requirements.