Oracle Eyes Expanding Footprint In Saudi Arabia With Third Data Center

Anusuya Lahiri
·1 min read
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  • Oracle Corp (NYSE: ORCL) weighed a $1.5 billion multi-year investment in Saudi Arabia as it built up its cloud footprint in the kingdom and launched its third public cloud region in Riyadh.

  • Oracle would also expand the capacity of its cloud region in Jeddah, which the company first opened in 2020, Reuters reports citing Oracle SVP Nick Redshaw in an interview.

  • Oracle broke the news at a major tech conference in the Saudi capital.

  • Also Read: Google, Oracle, Amazon And Microsoft Jointly Win US DoD Cloud Contract Worth $9B

  • Higher demand for cloud computing has pushed technology companies like Oracle, Microsoft Corp (NASDAQ: MSFT), Amazon.Com Inc (NASDAQ: AMZN), and Alphabet Inc's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to set up global data centers to speed up data transfer.

  • Saudi officials lured international companies with government contracts into investing in the kingdom and migrating their regional headquarters to Riyadh.

  • Saudi Arabia committed hundreds of billions of dollars to an economic transformation led by its de facto ruler Crown Prince Mohammed bin Salman.

  • However, the country's FDI reached just under $4.1 billion in the first half of 2022, a fraction of the ambitious $100 billion target set for the end of this decade.

  • Oracle has also won contracts from the crown prince's $500 billion flagship NEOM project, a futuristic mega city and economic zone that the crown prince is building on the Red Sea coast.

  • Price Action: ORCL shares closed higher by 0.29% at $89.64 on Friday.

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