stc, Saudi Arabia’s leading telecom operator, and the Public Investment Fund-backed Humain have extended their memorandum of understanding by six months to finalize a joint venture for a massive AI-focused data center project. The extension signals the strategic complexity and scale of the initiative, which aims to significantly boost the Kingdom’s digital and AI infrastructure.
Quick Facts
- MoU extended for an additional six months.
- JV targets 1-gigawatt AI data center capacity.
- Humain to hold 51% stake, stc 49%.
Finalizing a Landmark Deal
The original agreement, signed last December, has expired, prompting the six-month extension to allow both parties more time to navigate the project’s regulatory, operational, and commercial complexities. According to a Tadawul filing, the move was necessary to finalize negotiations before signing the definitive joint venture agreement.
“This extension reflects the scale and strategic importance of the project to both parties and the need to complete certain related regulatory and operational requirements,” the filing stated. It also confirmed that “tangible progress” has been made in finalizing the commercial and operational aspects of the venture.
Center3 and Humain: A Strategic Pairing
The proposed joint venture will be established through stc’s subsidiary, Digital Centers for Data and Telecommunications Co., known as Center3. Humain is set to take a majority 51% stake, with stc controlling the remaining 49%.
The partnership plans to develop and operate AI-specific data centers with an eventual capacity of up to 1 gigawatt. The project will begin with an initial phase targeting up to 250 megawatts, contingent on customer commitments. This structure leverages Center3’s existing data center infrastructure and regional connectivity with Humain’s mandate to build comprehensive AI capabilities.
Powering Saudi Arabia’s Digital Ambitions
This initiative is a core component of Saudi Arabia’s Vision 2030 and its National Strategy for Data and AI. By localizing advanced digital infrastructure, the joint venture aims to solidify the Kingdom’s standing as a major regional digital hub and accelerate the development of its domestic AI ecosystem. The project is designed to create the high-capacity, low-latency infrastructure required to support the next generation of AI-driven economies.
stc confirmed that the extension has no material financial impact at this stage and will announce significant updates as the project progresses.
About stc
Saudi Telecom Co. (stc) is a Saudi Arabia-based telecommunications company that offers a variety of services, including mobile, broadband, and enterprise solutions. It is a key enabler of digital transformation in the Kingdom and the wider region.
About Humain
Humain is a company backed by Saudi Arabia’s Public Investment Fund (PIF) with a focus on building end-to-end AI capabilities and supporting the development of critical digital infrastructure.
Source: Arab News
