The Minister of Energy thanks the leadership for adopting tariffs for electricity consumption in the cloud computing activity

His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, Chairman of the Board of Directors of the Water and Electricity Regulatory Authority, and His Excellency the Minister of Communications and Information Technology, Chairman of the Board of Directors of the Communications and Information Technology Commission, Eng.Abdullah bin Amer Al-Swahha, expressed his thanks and gratitude to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud And to His Royal Highness Prince Muhammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense – may God preserve them – on the occasion of the honorable Cabinet’s decision to approve the electricity consumption tariff for companies operating in the cloud computing activity in the Kingdom, noting what this decision reflects from The interest of the Kingdom’s leadership and government in developing and supporting the information technology sector, and developing investments in it, embodying the directions of the Kingdom’s 2030 vision and achieving the goals of its executive programs related to digital transformation.

This support for activities that require specific use of electrical energy reflects the interest and empowerment of leadership, “may God support it”, for activities of high and important social and economic impact in the Kingdom.

In a statement on this occasion, His Highness the Minister of Energy affirmed that the approved tariff, which is 18 halala per kilowatt hour, will be a catalyst for investment in the vital field of cloud computing, which is one of the most important enablers for establishing the rules for digital transformation in the Kingdom, and supporting the development and implementation of Advanced technologies in all business fields, noting that this decision embodies the pivotal and integrative role that the electricity sector and its partners in the communications and information technology sector play.

His Highness explained that the entities that will benefit from this tariff include companies operating in the activity of cloud computing licensed by the Communications and Information Technology Commission and currently existing, as well as new companies that apply to deliver electricity to them before the end of 2023.

His Highness indicated that the Water and Electricity Regulatory Authority will issue rules and procedures for applying the tariff, which will clarify the mechanism for submitting tariff applications and benefiting from it, in coordination with the Communications and Information Technology Commission as the regulator of cloud computing activity in the Kingdom.

For his part, His Excellency the Minister of Communications and Information Technology said: “The tariff, with its competitive advantages, strengthens the Kingdom’s position as a focal point for digitally connecting continents by expanding the scope and capacity of data processing in the Kingdom, and raising its capacity, by stimulating investment in data centers and computing services. Cloud. “

His Excellency Engineer Abdullah Al-Sawah added, “The impact of this decision will directly affect the growth of the data-dependent digital economy, accelerate the entry of digital products to the market, in addition to stimulating an environment conducive to digital entrepreneurship.” Pointing out that the Kingdom culminated in its technical and digital transformation efforts by attracting the two largest technical investments in the Middle East and North Africa region in the field of cloud computing, represented by the selection of Google and Ali Baba Cloud for the Kingdom as a regional center for their operations in the region, in two deals totaling more than a billion And half a billion dollars.


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