stc Group and Alibaba Group have established Alibaba Cloud in Riyadh, Kingdom of Saudi Arabia, with an initial capital investment of $238.3 million (SAR 894 million).
stc and Alibaba will deliver high-capacity cloud services in partnership with eWTP Arabia for Technical Innovation, the Saudi Company for Artificial Intelligence (SCAI) and the Saudi Information Technology Company (SITE).
The launch of the new company in Riyadh, comes in response to the growing increase in demand for cloud computing services in the region. As such, Alibaba Cloud will provide advanced cloud computing services to companies operating in Saudi Arabia.
Leveraging stc’s services and technology solutions, the new entity will employ the best local talent to support its new capabilities, support digital transformation and build an advanced ecosystem.
For its part, Alibaba will offer a wide range of cloud computing services and solutions, enabling local companies and institutions to digitize their businesses, ready itself for fourth industrial revolution and enhance businesses.
The partnership comes in support of the Kingdom’s efforts to enhance economic diversification and stimulate investment opportunities in the cloud computing sector, specifically the Kingdom’s 2030 vision.
In related news, earlier this month Alibaba launched its third data center in Germany. The Frankfurt facility provides a range of cloud computing products ranging from storage and network to database.
At the same time, Nokia and STC partnered to launch a managed SD-WAN solution for enterprises in Saudi Arabia.