Saudi Arabia Reduces Power Tariff to Boost Cloud Computing

The approval comes after Google and Alibaba made two key decisions to introduce cloud services to the Kingdom with a combined investment of $1.5 billion, the most prominent regional tech investment to date.

RIYADH: The Council of Ministers has approved a reduced electricity tariff bundle for Saudi-based public cloud computing operators. The decision is part of Vision 2030 ambitions to drive growth across the Saudi digital economy.

Cloud storage operators authorized by the Communications and Information Technology Commission (CITC) will be paid 18 halala ($0.048) per kilowatt/hour under the latest tariff package, one of the lowest prices in the world.

The approval comes on the heels of two major decisions by Google and Alibaba to bring cloud services to the Kingdom through a joint $1.5 billion investment, the most significant regional tech investment to date.

According to a CITC report on cloud computing's regulatory status, the sector will play an essential role in developing the modern Saudi digital economy and promoting innovation. According to the report, the pandemic has intensified the global shift toward digital transformation and data use. The study used the United Kingdom as a baseline. It contrasted its position to ten other nations, including the United Kingdom, the United States, South Korea, Japan, Germany, Denmark, and Australia.

Reference : https://www.arabnews.com/node/1825521/saudi-arabia

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