RIYADH: Aramco has signed a memorandum of understanding with Microsoft to expand collaboration on industrial artificial intelligence initiatives, aiming to accelerate digital transformation across Saudi Arabia’s energy and industrial sectors while strengthening the Kingdom’s digital infrastructure.
The partnership builds on the companies’ existing relationship and focuses on deploying AI-powered industrial applications through Microsoft’s Azure cloud platform. The initiative is intended to move artificial intelligence from experimental use cases into core operational processes, improving efficiency, resilience and global competitiveness across Aramco’s upstream, downstream and chemicals operations.
A key element of the collaboration is the focus on digital sovereignty and data governance. Both companies plan to develop cloud strategies incorporating sovereign controls and data residency requirements aligned with Saudi Arabia’s regulatory framework, supporting national objectives to localise critical digital infrastructure and maintain control over sensitive industrial data.
The agreement also targets operational optimisation by enhancing digital frameworks that underpin Aramco’s energy operations, creating a more integrated and efficient technology environment across business units. The companies aim to extend AI adoption beyond Aramco by engaging local technology providers and industry partners, supporting broader industrial innovation and economic diversification in line with Vision 2030.
Another area under discussion includes the joint development and potential commercialisation of industrial AI intellectual property. This could involve creating a global marketplace for AI-based operational tools designed for the energy sector, enabling Saudi-developed solutions to compete internationally.
Workforce development forms a further pillar of the collaboration, with both organisations exploring expanded training programmes in AI engineering, cybersecurity, data management and digital product development. These initiatives are expected to support the growth of a digitally skilled workforce aligned with Saudi Arabia’s long-term technology ambitions.
The memorandum sets a framework for future cooperation rather than binding financial commitments but signals Aramco’s continued strategy of embedding AI, automation and advanced analytics into its operational core. For Microsoft, the collaboration reinforces its strategic position in the global energy sector as cloud providers increasingly compete to support AI-driven industrial transformation.
