Another public cloud "region" is being added by Oracle in Saudi Arabia as part of a $1.5B investment in the Kingdom's cloud infrastructure requirements. The most recent Oracle cloud region is the third and will be in Riyadh while the first was in Jeddah, and another was agreed upon for the future city of NEOM.
Oracle will work with the Ministry of Communications and Information Technology (MCIT) and the Communications and Information Technology Commission (CITC) to create a commercial and operational model for a second cloud region in Saudi Arabia that complies with local regulations on data residency as well as national standards. Oracle says that its investment will hasten the cloud transition in Saudi Arabia's private and public sectors.
Why it matters
Public cloud spending in Saudi Arabia is expected to grow by 26.8% to $3.1B by 2026, according to analysts, driven by businesses aiming to use the cloud to modernise their apps. Cloud service providers' interest in developing in-country networks in Saudi Arabia demonstrates the increased importance placed on data residency.