Saudi Telecom Company (stc) has announced the signing of a memorandum of understanding (MoU) with Future Artificial Intelligence Company (HUMAIN) to establish a joint venture through its subsidiary, Digital Centers for Data and Telecommunications Company (Center3). The partnership aims to develop and operate AI-focused data centers in the Kingdom of Saudi Arabia.

The memorandum was signed on December 18, 2025. The agreement establishes a framework for creating advanced infrastructure specifically designed to support artificial intelligence operations within Saudi Arabia.

Joint Venture Structure and Capacity

The joint venture will be structured with HUMAIN holding a 51% stake and stc holding a 49% stake. The partnership is designed to develop advanced infrastructure with a high operational capacity of up to 1 gigawatt to support data centers.

The development will begin with an initial capacity of up to 250 megawatts, subject to customer contractual commitments. This phased approach enables scalable expansion in line with market demand and customer requirements.

Strategic Objectives and Capabilities

The joint venture brings together Center3's scale, data-center leadership, and extensive regional connectivity with HUMAIN's strategic mandate to champion end-to-end capabilities. This combination is intended to lay the groundwork for high-capacity, low-latency infrastructure critical to the AI era.

The initiative reflects stc's commitment to enabling the Kingdom's digital future and supports Saudi Arabia's Vision 2030 by localizing advanced digital infrastructure. The partnership aims to enable the development of AI capabilities and strengthen Saudi Arabia's position as a regional digital hub.

Related Party Status and Ownership

HUMAIN is considered a related party to this transaction because it is a subsidiary of the Public Investment Fund (PIF). The Public Investment Fund also holds an ownership stake in stc, creating a connection between the two companies through their mutual relationship with the sovereign wealth fund.

This related party status provides additional context for the strategic alignment between the two organizations and their shared objectives in developing Saudi Arabia's digital infrastructure.

Financial Impact and Timeline

The financial impact of the joint venture is expected to be positive; however, it cannot be determined at this stage. The actual financial implications will depend on the project plans and investment requirements developed during the implementation phase.

The memorandum of understanding is for a six-month term, providing a specific timeframe for the parties to finalize the terms and structure of the joint venture. During this period, the companies will work to establish the detailed framework for their collaboration.

The companies have indicated that any material development related to this joint venture will be announced in due course, ensuring that stakeholders will be informed of significant progress or changes to the partnership as they occur.

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