$300M alliance to build sovereign AI data centre in Saudi Arabia
Alliance aims to drive intelligent industrialisation and sustainable transformation
#SaudiArabia #datacentres – Global AI transformation company Magna AI and SAP Gold Partner TechnoVal have signed a memorandum of understanding for a $300 million strategic alliance to drive AI-powered industrial transformation across the Middle East and Africa. The partnership will establish a sovereign AI and cloud data centre in Saudi Arabia designed to support public and private sector workloads whilst transforming TechnoVal’s parent companies—HSA and OMACO Groups—into AI-driven industrial benchmarks across their operations in more than 80 global markets spanning FMCG, packaging, logistics, manufacturing and food processing.
SO WHAT? – The AI and cloud infrastructure deal highlights the new regional focus on sovereign cloud AI. Over the past year, an increasing number of digital service providers and infrastructure operators have pivoted to offer sovereign AI and cloud services to meet fast-growing demand across the region. Whilst other cloud services have focused more on the financial and healthcare sectors, this alliance targets practical industrial AI implementation at scale through real-world transformation of major manufacturing and logistics operations.
Here are some key points about this announcement:
Global AI transformation company Magna AI and TechnoVal have signed a memorandum of understanding for a $300 million strategic alliance to drive AI-powered industrial transformation across the Middle East and Africa.
The partnership plans to develop a joint AI and cloud data centre in Saudi Arabia and across the broader MENA region, creating a sovereign-ready innovation hub to support cross-border AI computing, data governance and enterprise-grade performance for government and private sector clients.
TechnoVal’s parent companies HSA and OMACO Groups will serve as the first AI-driven industrial benchmark, embedding intelligence, automation and predictive optimisation across their value chain spanning FMCG, packaging, logistics, manufacturing and food processing operations in over 80 markets.
Magna AI will integrate its capabilities into TechnoVal’s SAP ecosystem, enhancing S/4HANA, SuccessFactors, Ariba and SAC solutions with predictive analytics, intelligent automation and AI copilots to modernise enterprise operations and unlock productivity gains.
The alliance will reinforce TechnoVal’s cybersecurity portfolio through Magna AI’s advanced SIEM and Cybersecurity Digital Twin technologies, enabling proactive defence, predictive threat detection and measurable resilience for enterprise and government clients across the region.
Beyond the initial industrial transformation, partners plan to extend the initiative to public sector, finance, energy, healthcare, construction and smart cities sectors, establishing foundations for intelligent industrialisation across MENA.
The companies will collaborate on go-to-market and ecosystem enablement frameworks, aligning business development, customer engagement, demonstrations and marketing campaigns to accelerate AI adoption..
Magna AI operates as a global full-value-chain AI transformation factory established in partnership with global cybersecurity leader Trend Micro and Taiwan-based technology service provider Wistron Digital Technology Holding Company, powered by NVIDIA technologies.
[Written and edited with the assistance of AI]
The sovereign cloud angle combined with practical SAP ecosystem integration is the right approach for this region. Most AI infrastructure investments focus on model training or generic compute, but this targets the operational backbone where TechnoVal already has S/4HANA deployments across HSA and OMACO's 80+ markets. The real test will be whether Magna's copilots can actually accelerate SuccessFactors and Ariba workflows in FMCG and logistics environments without creating another layer of complexity that requires consultants to maintian.