Microsoft to launch Saudi Arabia East datacenter region

Deal Analysis

Microsoft's announcement of the Saudi Arabia East datacenter region marks a significant expansion of its Azure cloud infrastructure into the Kingdom. The new region, located in the Eastern Province, will feature three availability zones with independent infrastructure, aiming for a Q4 2026 launch. This development, undertaken in collaboration with Saudi Data Solutions (SDS), underscores Microsoft's commitment to providing cloud services in Saudi Arabia and supporting the country's digital transformation initiatives. While the financial value of the investment remains undisclosed, the project signifies a substantial commitment to the region's technological advancement.

Microsoft is launching a new Azure cloud datacenter region in Saudi Arabia's Eastern Province.
The datacenter will feature three availability zones with independent infrastructure.
Saudi Data Solutions (SDS) is a key partner in the development.
The project is expected to be live in Q4 2026.

Market Context: The data center market in Saudi Arabia is experiencing rapid growth, driven by increasing demand for cloud services, digital transformation initiatives, and government investments in technology infrastructure. Major cloud providers are expanding their presence to capitalize on this growing market.

Source Intelligence

KEY DETAILS

The new Microsoft Azure cloud datacenter region will include three availability zones with independent power, cooling, and networking infrastructure. Quote: The new Microsoft Azure cloud datacenter region, located in Saudi Arabia’s Eastern Province, will include three availability zones with independent power, cooling, and networking infrastructure.

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Location

The new Microsoft Azure cloud datacenter region, located in Saudi Arabia’s Eastern Province

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Announcement

Microsoft confirms Saudi Arabia East cloud region will go live in Q4 2026 20 Feb

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COD

Microsoft has confirmed that customers will be able to run cloud workloads from its Saudi Arabia East datacenter region starting in Q4 2026

PARTIES MENTIONED IN SOURCE

M

Microsoft developer

"Microsoft has confirmed that customers will be able to run cloud workloads from its Saudi Arabia East datacenter region starting in Q4 2026"

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Qiddiya | القدية buyer

"Organizations like Qiddiya | القدية and Acwa are moving from experimentation to production, using cloud and AI to strengthen decision-making, build resilience, and advance sustainability at scale.”"

A

Acwa buyer

"Organizations like Qiddiya | القدية and Acwa are moving from experimentation to production, using cloud and AI to strengthen decision-making, build resilience, and advance sustainability at scale.”"

P

Public Investment Fund

"The company has also announced intent with the Public Investment Fund and Site to explore sovereign cloud services, alongside regulatory engagement focused on compliance and responsible AI deployment."

S

Site

"The company has also announced intent with the Public Investment Fund and Site to explore sovereign cloud services, alongside regulatory engagement focused on compliance and responsible AI deployment."

high quality Enriched Feb 23, 2026