Huawei, the Chinese Tech Giant, Aims to Expand Its Regional Presence in KSA by Opening a Cloud Data Center

Huawei Technologies (HWT.UL) has expanded its global presence by inaugurating a new cloud data center in Riyadh, the capital of Saudi Arabia. This strategic move is aimed at bolstering the company's online service portfolio in the Middle East and North Africa region.

Huawei, a prominent Chinese tech giant, made this announcement on Monday, as reported by David Kirton for Reuters.

The newly established cloud data center in Riyadh marks Huawei's 30th such facility worldwide. It is specifically designed to facilitate various government services for the Saudi kingdom.

Additionally, the data center will empower the deployment of artificial intelligence (AI) applications and language models, primarily focusing on the Arabic language. A spokesperson from Huawei shared these insights during a recent briefing session.

"The implementation of Huawei cloud is not just about us, but is a bridge that will bring other Chinese companies to Saudi Arabia," said Steven Yi, the company's regional president.

The step would contribute to the development of the country's digital economy, he said, adding that Huawei opened its regional headquarters in the Saudi capital this year.

Saudi Arabia has previously said it would not sign contracts with foreign companies that did not have regional headquarters in the kingdom after this year.

According to research consultancy Canalys, Huawei secured the fifth position in the global cloud services market during the first quarter, boasting a 2.4% market share. Notably, it held the second-largest vendor position within mainland China.

In a significant move, Huawei had announced its commitment to invest $400 million in the Saudi Arabian cloud region over the coming five years back in February.