stc inks MoU with HUMAIN to develop AI data centers

The JV aims to develop and operate AI-focused data centers in Saudi Arabia

Telecom major stc’s subsidiary, Digital Centers for Data and Telecommunications Co. (Center3), signed a memorandum of understanding (MoU) today, Dec. 18, with Future Artificial Intelligence Co. (HUMAIN), a subsidiary of the Public Investment Fund, to establish a joint venture (JV).

The JV aims to develop and operate AI-focused data centers in the Kingdom, stc said in a statement to Tadawul.

The JV is intended to develop advanced infrastructure with a high operational capacity of up to 1 gigawatt (GW) of required load to operate data centers, starting with an initial capacity of up to 250 megawatt (MW), subject to contractual commitments with customers.

HUMAIN will hold a 51% stake in the JV, while stc will own the remaining 49%.

stc noted that the JV reflects its commitment to enabling the Kingdom’s digital future. It brings together Center3’s scale, data-center leadership, and extensive regional connectivity with HUMAIN’s strategic mandate to champion end-to-end capabilities - laying the groundwork for high-capacity, low-latency infrastructure critical to the AI era.

The initiative supports Vision 2030 by localizing advanced digital infrastructure and enabling the development of AI capabilities, and strengthening Saudi Arabia’s position as a regional digital hub.

HUMAIN is a related party, as it is one of the PIF's subsidiaries. The PIF also holds a stake in stc.

The financial impact is expected to be positive; however, it cannot be determined at this stage, as it depends on the project plans and investment requirements.

Any material development will be announced in due course, the statement noted.