Saudi Telecom Company (stc) and Public Investment Fund-backed Humain have extended their memorandum of understanding by six months as both parties work to finalise a joint venture that would develop up to one gigawatt of AI-focused data centre capacity in the Kingdom.
The extension follows the expiry of the original agreement signed in December and provides additional time to complete regulatory, operational, and commercial requirements ahead of finalising the venture.
What the Joint Venture Involves
The proposed partnership will be established through STC subsidiary Digital Centres for Data and Telecommunications Co., with Humain holding a 51 per cent stake and STC owning the remaining 49 per cent.
The joint venture aims to develop and operate AI-focused data centres with a planned total capacity of up to 1 gigawatt. The project’s initial phase is expected to deliver up to 250 megawatts of capacity, subject to customer commitments.
The Public Investment Fund owns all of Humain and 62 per cent of stc, meaning PIF has a significant stake on both sides of the deal. This arrangement underscores how closely the Saudi government is steering the Kingdom’s AI infrastructure buildout.
Why the Extension Was Needed
stc described the delay as a reflection of the project’s scale and complexity rather than a setback. The bourse filing stated that during the past period, both parties made tangible progress in discussing and finalising the commercial, operational, and regulatory aspects of the joint venture. stc added that the extension currently has no material financial impact and that further updates will be disclosed as the project progresses.
What Each Party Brings
The planned joint venture will combine Center3’s data centre infrastructure, operational scale, and regional connectivity with Humain’s focus on building end-to-end AI capabilities, supporting the development of high-capacity, low-latency infrastructure.
Humain was established by PIF in 2025 as Saudi Arabia’s primary vehicle for building domestic artificial intelligence capacity. Center3, for its part, has been building out data centre infrastructure across the region and signed an earlier connectivity framework agreement with Humain in October 2025, making this joint venture the next step in a deepening relationship between the two entities.
The joint venture also aims to create a robust platform for the deployment of large language models and mission-critical AI applications.
Vision 2030 Alignment
The initiative is intended to support Saudi Arabia’s digital transformation ambitions by expanding advanced digital infrastructure and strengthening domestic AI capabilities. It also aligns with the Kingdom’s Vision 2030 objectives and the National Strategy for Data and AI, which seeks to position Saudi Arabia among the world’s leading data- and AI-driven economies.
The MoU extension is the latest signal that Saudi Arabia’s AI infrastructure ambitions are moving from announcement to execution, albeit on a timeline that requires careful regulatory groundwork. A one-gigawatt data centre footprint would be among the largest AI infrastructure commitments in the region, and the deal’s structure suggests the Kingdom intends to retain strategic control over the infrastructure that will underpin its AI future.
