stc and Humain Form Joint Venture to Develop AI-Focused Data Centers in Saudi Arabia

Saudi Telecom Co. has signed an agreement with Public Investment Fund-backed firm Future Artificial Intelligence Co., also known as Humain, to launch a joint venture aimed at developing and operating data centers dedicated to artificial intelligence in the Kingdom. According to a Tadawul statement, Humain will hold a 51 percent stake in the venture, while stc will maintain the remaining 49 percent.

The agreement was formalized through a six-year memorandum of understanding. The data centers will be developed under stc’s subsidiary, Digital Data and Communications Centers, also known as center3. The facilities are set to feature advanced infrastructure capable of handling up to 1 gigawatt of power, with an initial capacity of 250 megawatts that will expand based on customer demand and contracts.

The joint venture represents a major step in Saudi Arabia’s efforts to strengthen its digital infrastructure and accelerate artificial intelligence development. It aligns with Vision 2030 by localizing high-tech digital capabilities and positioning the Kingdom as a regional hub for digital innovation. The project also supports the National Strategy for Data and AI, which aims to place Saudi Arabia among the top 10 countries on the open data index and among the top 20 for peer-reviewed data and AI research publications by 2030.

The Tadawul statement highlighted the complementary strengths of the two partners. “The JV brings together center3’s scale, data-center leadership, and extensive regional connectivity with Humain’s strategic mandate to champion end-to-end capabilities — laying the groundwork for high-capacity, low-latency infrastructure critical to the AI era,” the filing said. While the financial impact of the venture is expected to be positive, it depends on the finalized project plans and investment requirements, the statement noted.

Humain is classified as a related party because it is a subsidiary of the Public Investment Fund, which also holds a stake in stc. This connection underscores the collaborative nature of the initiative between state-backed entities in driving technological progress in the Kingdom.

Earlier this month, the Saudi Press Agency reported that Saudi Arabia had achieved the fifth position globally and the top rank in the Arab region for growth in the AI sector, according to the Global AI Index. The ranking reflects the country’s growing international competitiveness in digital technologies and the success of Vision 2030 in fostering innovation and economic diversification.

Through this venture, stc and Humain aim to build the infrastructure necessary for next-generation applications, enabling faster, more reliable, and scalable digital services across the region. The project signals a major investment in the Kingdom’s technological future, strengthening its position as a leading player in data-driven industries.