Saudi stc and PIF subsidiary HUMAIN extend partnership, plan to build AI data center of up to 1GW

Saudi Telecom Company (STC) and PIF-backed Humain have extended their memorandum of understanding for six months to establish a joint venture focused on developing artificial intelligence data centers in Saudi Arabia.

According to documents submitted to Tadawul, the extension follows the original agreement's expiration in December, providing additional time to complete regulatory, operational, and commercial requirements in order to finalize the joint venture.

The proposed partnership will be established through STC's subsidiary Data and Telecom Digital Center Company (Center3), with Humain holding 51% equity and STC holding 49%.

The joint venture aims to develop and operate AI-focused data centers with planned capacity of up to 1 gigawatt. The project's initial phase is expected to deliver capacity of up to 250 megawatts, depending on customer commitments.

STC stated that the extension reflects the project's scale and strategic importance, allowing both parties to complete remaining negotiations and regulatory procedures. The company added that concrete progress has been made in finalizing the commercial, operational, and regulatory framework of the joint venture.

The initiative aims to support Saudi Arabia's digital transformation ambitions by expanding advanced digital infrastructure and strengthening domestic AI capabilities.

It also aligns with Saudi Arabia's Vision 2030 goals and its National Data and AI Strategy, which aims to position Saudi Arabia as a world leader in data and AI-driven economies.

The proposed joint venture will combine Center3's data center infrastructure, operational expertise and regional connectivity, along with Humain's focus on developing end-to-end AI capabilities, to support the deployment of high-capacity, low-latency infrastructure.

STC stated that the extension currently has no material financial impact, and further updates will be disclosed as the project progresses.