Saudi Arabia has emerged as one of the world’s leading artificial intelligence markets, ranking among the top 10 countries for private AI investment as the Kingdom rapidly expands its data centre capacity, digital infrastructure and technology workforce, according to the World Bank Group.
The World Development Report 2026: The Promise of Artificial Intelligence highlights Saudi Arabia’s growing AI ecosystem, including its efforts to attract specialised talent, increase computing capacity and integrate government data. The findings come as the Kingdom marks 2026 as the “Year of AI”.
The World Bank report examines AI development through three main dimensions: Capabilities, Concentration and Complements. These assess the technology’s ability to broaden access to expertise, the concentration of advanced AI infrastructure and investment, and the supporting systems—including connectivity, data, skills and institutions—required to maximise its economic potential.
Data Centre Capacity Expands Nearly Sevenfold
Saudi Arabia has used incentives and special economic zones to encourage investment in data centres and computing infrastructure, linking capital investment with a wider ecosystem of startups, talent, energy and technology.
The Kingdom’s data centre capacity increased from 68MW in 2021 to 440MW in 2025 and reached 467MW during the first quarter of 2026. This represents an almost sevenfold increase compared with 2021 and growth of more than 6% since the beginning of 2026.
Digital connectivity has expanded alongside computing capacity. Coverage by 4G and 5G networks reached 99% by the end of 2025, while average internet speeds stood at 216Mbps, providing a foundation for further growth in cloud computing and AI applications.
Technology Workforce Climbs to 426,000
Saudi Arabia is also strengthening its position as a destination for international AI specialists while significantly expanding its domestic technology workforce.
According to the World Bank report, the Kingdom was among the economies recording the highest net inflows of AI professionals per 10,000 LinkedIn members in 2025, alongside Luxembourg, Australia and Switzerland.
Saudi Arabia’s overall technology workforce has grown to approximately 426,000, up from 150,000 in 2018—a cumulative increase of 186.6%. Women now account for 35% of participation in communications and information technology professions.
World Bank Highlights Saudi Government Data Integration
The report also identifies Saudi Arabia as a notable example of government data integration.
A platform operated by the Saudi Data and Artificial Intelligence Authority (SDAIA) connects data across more than 60 government entities while allowing information to remain within the respective entities’ systems.
The World Bank presents the model as an example of structured and secure data exchange that can enable government agencies to develop digital applications while strengthening governance, data protection and public trust.
Digital Economy Accounts for 16% of GDP
Saudi Arabia’s expanding AI ecosystem forms part of broader growth across its digital economy, which now contributes 16% of GDP.
The Kingdom’s communications and information technology market reached SAR199 billion ($53.07 billion) in 2025. Saudi Arabia also ranked second globally in the World Bank Group’s 2025 GovTech Maturity Index.
These developments support Saudi Vision 2030 objectives to diversify the economy and establish data, technology and innovation as increasingly important drivers of economic activity.
Building an Integrated AI Ecosystem
The World Bank report outlines three broad stages through which economies can develop their AI capabilities: adopting existing AI tools, adapting technologies to local languages and requirements, and eventually developing advanced technologies and the infrastructure supporting them.
The report stresses that successful AI development depends not only on building sophisticated models, but also on establishing an interconnected ecosystem of computing capacity, connectivity, data, skilled workers and effective institutions.
Saudi Arabia’s investment strategy increasingly reflects this approach, combining digital infrastructure expansion with talent development, government data integration and private investment.
The Kingdom formally designated 2026 as the “Year of AI” following Cabinet approval on March 10, reinforcing artificial intelligence as a central component of its economic and digital transformation agenda.
Source: Arabian Business
