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As part of the kingdom’s Vision 2030 strategy to drive growth across the Saudi digital economy,
The Council of Ministers has approved a reduced electricity tariff bundle for Saudi-based public cloud computing operators, according to regional news agency reports.

Under the arrangement, cloud computing operators licensed by the Communications and Information Technology Commission (CITC) will be charged SAR 0.18 ($0.048) per kilowatt/hour, one of the cheapest rates in the world.

According to the council, the Electricity & Cogeneration Regulatory Authority (ECRA) in coordination with the CITC will issue the rules and application measures of the tariff, including the methodology for applying to benefit from this tariff.

The approval follows announcement by tech giants Google and Alibaba to bring cloud services to the Kingdom through a combined investment of $1.5 billion, the largest regional tech investment to date.

According to the report, a CITC study on the regulatory status of cloud computing found that the sector is set to play a key role in building the new Saudi digital economy and encourage innovation.

The study also observed the pandemic to have expedited the global trend toward digital transformation and data use. The study used the Kingdom as a benchmark and compared its status with 10 countries, including the UK, the US, South Korea, Japan, Germany, Denmark and Australia.

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