19/06/2026 01:58 AST
Saudi Telecom Co., also known as stc, and Public Investment Fund-backed Humain have extended by six months a memorandum of understanding to establish a Saudi AI data center joint venture.
The extension, disclosed in a Tadawul filing on June 18, follows the expiry of the original agreement signed in December and gives the parties additional time to complete regulatory, operational and commercial requirements before finalizing the venture.
The joint venture with Humain reflects stc's commitment to enabling the Kingdom's digital future. The initiative also supports Saudi Vision 2030 by localizing advanced digital infrastructure, enabling the development of AI capabilities, and strengthening Saudi Arabia's position as a regional digital hub.
The project also aligns with the National Strategy for Data and AI, which aims to position Saudi Arabia among the world's leading data- and AI-driven economies.
"This extension reflects the scale and strategic importance of the project to both parties and the need to complete certain related regulatory and operational requirements, with the aim of finalizing the remaining negotiations and completing all necessary procedures and requirements in preparation for signing the joint venture agreement in line with the targeted plan," the bourse filing said.
It added: "During the past period, the parties have made tangible progress in discussing and finalizing the commercial, operational, and regulatory aspects of the joint venture."
The proposed joint venture will be established through stc subsidiary Digital Centers for Data and Telecommunications Co., known as Center3, with Humain holding a 51 percent stake and stc owning the remaining 49 percent.
The venture aims to develop and operate AI-focused data centers with capacity of up to 1 gigawatt, starting with an initial phase of up to 250 megawatts, subject to customer commitments.
The Tadawul statement further indicated that there is currently no material financial impact from the extension, and stc will announce any material developments or significant updates related to the project in due course.
The planned joint venture will combine Center3's data center infrastructure, operational scale, and regional connectivity with Humain's focus on building end-to-end AI capabilities, supporting the development of high-capacity, low-latency infrastructure.
Arab News
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