Saudi Arabia Taps Cisco and AMD for Cloud Project in AI Buildout

Saudi Arabia is tapping Cisco and AMD for its cloud project to build AI capabilities domestically. The move comes as the kingdom seeks to reduce its reliance on foreign technology. The project aims to create a robust domestic AI ecosystem, with the potential to attract foreign investment and drive economic growth.

Saudi Arabia is taking a significant step towards reducing its reliance on foreign technology by partnering with Cisco and AMD for a major cloud project aimed at building robust domestic AI capabilities. This strategic move aligns with the kingdom's broader vision to create a thriving domestic AI ecosystem, which could potentially attract foreign investment and drive economic growth [1].

The project, which involves significant investments, seeks to establish Saudi Arabia as a leader in the Middle East's AI landscape. This initiative comes at a critical time when both Saudi Arabia and the United Arab Emirates (UAE) are engaged in a high-stakes race to become the region's leading AI technology hubs. Both nations are investing billions in data centers and innovation, with Saudi Arabia's Vision 2030 strategy emphasizing AI as central to economic transformation [1].

Saudi Arabia's commitment to AI includes several notable investments. For instance, the Public Investment Fund (PIF) is planning a $10 billion venture capital fund through its AI company, Humain. Additionally, Google Cloud and PIF are investing $10 billion to jointly build and operate an AI hub, while AWS and Humain have announced a $5 billion joint investment to develop an "AI Zone" in Saudi Arabia [1]. These initiatives highlight Saudi Arabia's determination to diversify its oil-dependent economy and drive growth through AI.

The move to partner with Cisco and AMD is part of Saudi Arabia's broader strategy to foster a domestic AI ecosystem. By leveraging these companies' expertise, Saudi Arabia aims to create a self-sustaining AI infrastructure that can compete with global leaders. This initiative is particularly relevant given the current geopolitical landscape, where the U.S.-China rivalry over AI dominance is intensifying [1].

Moreover, Saudi Arabia's efforts to attract foreign investment and talent are crucial for its AI ambitions. The kingdom has been proactive in forging strategic alliances with U.S. tech giants and planning some of the world's largest data center clusters. As of early 2025, Saudi Arabia has 300+ MW of data center capacity, which is set to grow significantly with planned projects [1].

The competition between Saudi Arabia and the UAE is not just about AI infrastructure; it is also about shaping the future of AI governance. Saudi Arabia has proposed the world's first "Global AI Hub Law," which sets a bold precedent for how nations can host foreign AI data infrastructure under non-local legal regimes. This law, released by the Saudi Council of Scientific Research (CST), allows for "negotiable sovereignty" where countries and companies can choose their governing laws while operating inside Saudi Arabia [2].

In conclusion, Saudi Arabia's strategic cloud project with Cisco and AMD is a significant step towards building a robust domestic AI ecosystem. This initiative, along with other investments and state-backed initiatives, positions Saudi Arabia as a serious contender in the Middle East's AI race. As the kingdom continues to diversify its economy and attract foreign investment, its AI ambitions are poised to shape the future of technology in the region.

References:
[1] https://meatechwatch.com/2025/06/11/saudi-arabia-and-uae-compete-to-become-middle-easts-leading-ai-tech-hub-with-massive-investments-in-data-centers-and-innovation/
[2] https://www.linkedin.com/pulse/draft-global-ai-hub-law-redefining-innovation-compliance-ahmad-6ny6e