Saudi Telecom Company (STC Group) and Humain, Saudi Arabia’s national artificial intelligence company, have entered into a joint venture agreement to develop and operate large-scale, AI-focused data centers across Saudi Arabia. The partnership marks a significant step in the country’s efforts to expand advanced digital infrastructure in line with rising demand for artificial intelligence and high-performance computing workloads.
Under the agreement, Humain will hold a 51 percent stake in the venture, while Digital Centers for Data and Telecommunications Company (center3), a data-centre subsidiary of STC Group, will own the remaining 49 percent. STC Group disclosed the ownership structure in a statement to the Saudi stock exchange, although the companies did not release financial details related to the deal. The joint venture will begin by developing data center facilities with a combined initial capacity of 250 megawatts. Over time, total operational capacity is expected to scale up to 1 gigawatt, positioning the project among the largest AI-focused data-center initiatives announced in the region. Capacity expansion will proceed in phases and remain tied to contractual commitments secured with customers.
The partnership brings together Humain’s focus on artificial intelligence infrastructure with center3’s experience in large scale data center development and operations. By combining AI-oriented infrastructure planning with established data-center platforms, the venture aims to support increasingly dense compute environments required for next-generation AI workloads.
AI-driven computing continues to place growing pressure on traditional data center designs, particularly as rack densities rise sharply due to the deployment of advanced GPUs. These demands have prompted infrastructure developers globally to rethink facility scale, power delivery, and cooling strategies. The STC–Humain venture reflects this broader industry shift toward purpose-built environments designed specifically for AI and HPC workloads.
The ownership context of the participating organisations links the project closely to national investment priorities. Public Investment Fund (PIF) owns 100 percent of Humain and holds a 62 percent stake in STC Group, aligning the venture with Saudi Arabia’s Vision 2030 programme. Vision 2030 places strong emphasis on digital transformation, localisation of advanced technologies, and the development of domestic capabilities in emerging sectors such as artificial intelligence.
The data center initiative also builds on Humain’s recent infrastructure activity within the kingdom. In August, the company began work on its first data centre projects in Saudi Arabia, with initial facilities planned in Riyadh and Dammam. These sites are expected to launch in the second quarter of next year, each with an initial capacity of at least 100 megawatts. The developments form part of a broader roadmap to establish AI-ready infrastructure across key regions of the country.
Humain was launched earlier this year ahead of US President Donald Trump’s visit to Riyadh in May. The company’s mandate includes the development of next-generation data centers, cloud platforms, and large-scale Arabic-language AI models. The new joint venture with STC Group extends this mandate by providing a scalable physical infrastructure foundation to support such initiatives.
For STC Group, the partnership builds on an existing data center footprint that includes approximately 25 operational facilities across Saudi Arabia, alongside ongoing expansion plans. Through center3, the telecom operator has positioned data- centers as a strategic component of its digital services portfolio, supporting enterprise, cloud, and government workloads.
Market reaction to the announcement remained muted. STC Group’s shares closed 0.3 percent lower at SAR42.06 on Thursday, although the stock has risen approximately 4 percent over the past year. Analysts note that large-scale data-center projects typically influence long-term strategic positioning rather than short-term market performance.
As AI adoption accelerates across sectors, infrastructure requirements continue to evolve rapidly. The STC–Humain joint venture reflects a broader global trend in which telecom operators, sovereign-backed entities, and AI-focused firms collaborate to develop hyperscale infrastructure capable of supporting compute-intensive workloads. With a planned capacity of up to 1 gigawatt, the project signals Saudi Arabia’s intent to position itself as a regional hub for AI and advanced digital infrastructure.
