Tech executive highlights importance of localizing Saudi Arabia’s AI infrastructure

RIYADH — Artificial intelligence and data sovereignty took centre stage at Lenovo Tech World in Riyadh, underscoring Saudi Arabia’s drive to build locally owned and operated digital infrastructure.

Lawrence Yu, Head of Lenovo’s Middle East and Africa regional headquarters in Saudi Arabia, said the company’s expansion in the Kingdom is anchored in long-term commitments focused on localisation and capability building. Lenovo’s regional headquarters will be based in Al-Majdoul Tower in Riyadh.

“Our investment in Saudi Arabia is built around concrete commitments, such as a $2 billion strategic investment from Alat,” Yu said. He added that this includes hiring and training 100 Saudi engineers and launching a first-of-its-kind manufacturing facility, scheduled to open in mid-2026.

“If your data centres, servers and equipment are built and operated in Saudi Arabia, your AI remains yours. It’s secure, inspectable and fully under local control,” he said.

Yu noted that as governments and enterprises seek greater ownership of sensitive data and national digital systems, localising AI infrastructure is becoming increasingly critical. These initiatives underpin Lenovo’s decision to establish its regional headquarters in Riyadh, overseeing operations across the Middle East and Africa.

Beyond infrastructure, Yu said Saudi Arabia is being positioned as a producer rather than a consumer of advanced technology, reshaping what “Made in Saudi” represents globally.

“Saudi Arabia should be known for designing, creating and producing world-class technology,” he said. “When people use a product made here, by Saudi nationals, it changes the perception of the country.”

A central theme of the event was AI readiness, particularly the need for physical infrastructure capable of supporting large-scale deployment across government and enterprise sectors. Yu emphasised that while AI is often discussed in software terms, its success ultimately depends on advanced hardware that evolves alongside the technology.

“AI does not just work on its own. It needs hardware, and that hardware must continuously evolve,” he said, warning that reliance on outdated or externally hosted infrastructure can limit performance, security and long-term sustainability.

Locally available infrastructure enables faster upgrades, scalable operations and full control over critical workloads. Producing AI-ready PCs and servers in the Kingdom supports Saudi Arabia’s ambition to build sovereign AI capabilities aligned with Vision 2030.

Yu said collaboration with the Ministry of Investment and Alat has been instrumental in enabling localisation and alignment with national priorities. Lenovo’s upcoming factory in the Special Integrated Logistics Zone near King Khalid International Airport is expected to open in mid-2026, supporting advanced manufacturing and AI-ready infrastructure development.

Reflecting on the Kingdom’s technology transformation, Yu said long-term success depends on clear strategy, trusted partnerships and disciplined execution.

“To make Vision 2030 real, you need strategy, trusted partners and execution,” he said.