Saudi Telecom Company: Saudi’s STC To Create a New Subsidiary Focussing on Data Center and Cable Business

Saudi Telecom Company (STC) has revealed its plans to separate its data center business into a new subsidiary. The company says it will be transferring its international points of presence assets, international submarine cables, and data centers to the new wholly-owned subsidiary. The new company is valued at around SAR 2.1 billion ($559.7m). STC hasn’t named the new company yet, but it will have an initial capital of SAR 100 million ($26.6m). The company also revealed that it would invest further SAR 1.7 billion ($453.1m) in the new subsidiary. According to STC, the development will help attract foreign investment in digital infrastructure in Saudi Arabia.

In a statement STC released, it said the development would help enhance the country’s position as a top digital hub in the region. It also said it would continue investing in data centers across Saudi Arabia. Besides, STC also signed an agreement with Huawei earlier in the week to develop data centers in the country.