A memorandum of understanding was signed by Saudi Arabia’s Public Investment Fund (PIF), the Saudi information technology company SITE, and Microsoft to jointly explore the delivery of sovereign‑cloud services for government entities in the Kingdom.
The agreement focuses on leveraging Microsoft’s cloud platform to provide secure, compliant data‑storage and computing solutions that meet Saudi data‑sovereignty requirements, a key component of the Vision 2030 digital transformation agenda.
Under the proposed architecture, data will be isolated within dedicated data centers that adhere to local regulatory frameworks and international security standards, mirroring Microsoft’s sovereign‑cloud deployments in countries such as the United Kingdom and Australia.
SITE will act as the local partner, providing expertise in regulatory compliance, cybersecurity, and data‑center operations. The partnership is expected to expand SITE’s footprint in the Middle East and create new revenue streams from government cloud services.
The MOU outlines an exploration phase that will include pilot programs and a projected timeline for full deployment, with the parties aiming to begin service delivery within the next 12 to 18 months.
Strategically, the collaboration positions Microsoft to deepen its presence in Saudi Arabia and the broader Middle East, while reinforcing the Kingdom’s goal of becoming a global hub for AI and secure digital infrastructure. The partnership also signals a broader shift toward sovereign‑cloud solutions in the region, where other providers are competing for government contracts.
The initiative underscores the importance of data sovereignty and security for Saudi government entities and aligns with the Kingdom’s broader strategy to diversify its economy and invest in advanced technology platforms.
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