Microsoft Confirms Q4 2026 Launch for Saudi Arabia Cloud Region
February 10, 2026
Microsoft has officially confirmed that its new cloud datacenter region in Saudi Arabia will become operational for customer workloads starting in the fourth quarter of 2026. This strategic expansion is a pivotal development for the Kingdom's digital economy, directly supporting Saudi Arabia's Vision 2030 goals to diversify its economy and establish itself as a leading hub for technology and innovation in the Middle East. The upcoming "Saudi Arabia East" region, situated in the Eastern Province, will be constructed with three distinct availability zones to ensure high resilience. Each zone will feature independent power, cooling, and networking systems, designed to provide the enterprise-grade security, data residency, and low-latency performance required by government agencies and major industries for running mission-critical and AI-driven applications. This infrastructure forms the next critical phase in the nation's cloud journey, shifting focus from construction to widespread AI adoption.
The announcement follows over a year of deepening collaboration between Microsoft and Saudi stakeholders. Key developments include a recently declared intent by Microsoft, the sovereign wealth fund Public Investment Fund (PIF), and Site to explore sovereign cloud offerings, alongside visits by Saudi regulatory bodies to Microsoft's datacenter sites to align on security and compliance standards. Commenting on the milestone, H.E. Eng. Abdullah bin Amer Al-Swaha, Saudi Minister of Communications and Information Technology, stated: "This milestone reflects Saudi Arabia’s continued progress in building advanced, trusted AI infrastructure that supports our ambition to become an AI-enabled nation. We thank Microsoft for its strategic investment in the foundations of the AI economy in Saudi Arabia." During a visit to the Kingdom, Microsoft Vice Chair and President Brad Smith emphasized the global demand for trustworthy cloud infrastructure, saying, "Our long-term investment in Saudi Arabia reflects a shared commitment to building secure, sovereign-ready digital foundations that enable countries to adopt cloud and AI with confidence." Upon launch, the region will integrate into Microsoft's global cloud network, which spans more than 70 Azure regions across 33 countries. Microsoft is concurrently investing in local readiness through initiatives like its Innovation Hub, Saudization programs, and the expansion of its regional headquarters to help organizations modernize data estates and develop the necessary skills for production-scale AI deployment.
Turki Badhris, President of Microsoft Arabia, noted that the confirmed timeline gives organizations clarity for planning, adding, "Across Saudi Arabia, we are working closely with government entities, enterprises, and partners to support readiness – from data modernization and governance to skills development." The move is already seeing traction with early adopters. For instance, utility giant ACWA Power uses Azure AI for predictive maintenance and optimization, reportedly conserving water equivalent to tens of thousands of swimming pools daily. Meanwhile, the Qiddiya Investment Company has deployed Microsoft 365 Copilot across its massive development project, using AI to analyze terabytes of data and manage an ecosystem of over 700 contractors, significantly accelerating decision-making.
Source: microsoft
