Saudi Arabia, represented by its Communications, Space, and Technology Commission (CST) has drafted a Global AI Hub Law, which it notes will contribute to a legislative and regulatory environment that will attract investments in technology with a special focus on data centers and AI ( Artificial Intelligence)
As per the announcement, the law aims to endorse Saudi Arabia’s position as a global digital hub and influential leader in the global digital economy.
The law will support innovation, entrepreneurship, research, and development in advanced technologies across various digital solutions. Additionally, it will enable the establishment of sovereign data centers that ensure service continuity and data sovereignty beyond borders, while fostering investment in data and AI services to drive market growth and support sustainable digital infrastructure.
The Global AI Hub Law includes three advanced models
The Global AI Hub includes three advanced models. The first model is “Private Center”, targeting various countries around the world to host their data and services in the Kingdom.
The second model is “Extended Center”, operated by authorized entities serving themselves or others under a Guest Country’s laws, and the third is “Virtual Center”, which targets major AI and Cloud Computing companies to host their worldwide customers in the Kingdom according to levels of sovereignty and privileges suitable for their customers. The law aligns with relevant international treaty frameworks and principles.
Private and Extended Hubs require bilateral agreements with the Kingdom and must comply with cybersecurity, data protection, and international legal standards. Virtual Hubs allow data to be governed entirely by the foreign state’s laws.
The draft law also empowers the Council of Ministers to regulate, enforce, and terminate agreements to protect national sovereignty or in the absence of diplomatic ties.
CST is calling on governmental and private entities, investors, and interested parties to share their perspectives and suggestions. CST wants to involve all stakeholders in a transparent manner.
The feedback starts from April 14, 2025, until May 14, 2025, through the Public Consultation Platform.
Saudi Arabia’s $100 billion AI initiative
In 2024, Saudi Arabia announced a $100 billion AI initiative aimed at establishing itself as a major player in artificial intelligence, data analytics, and advanced technology.
The program, known as Project Transcendence, marks a significant push by the Kingdom to develop a robust AI ecosystem that can rival leading tech hubs, including neighboring United Arab Emirates and other global technology centers.
This unprecedented investment will focus on building state-of-the-art data centers, supporting startups, and expanding AI infrastructure to drive both domestic growth and international competitiveness.
In February 2025, during the fourth edition of the LEAP 25 tech conference in KSA, the first day of the event witnessed major investments and strategic partnerships exceeding a total value of $14.9 billion in infrastructure and artificial intelligence (AI).
Saudi Arabia’s digital health market is expected to grow from US$3.2 billion in 2024 to US$13.3 billion by 2031, with investments focused on AI diagnostics and improved care delivery.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
