New power tariff to stimulate investments in cloud computing field: energy minister

Prince Abdulaziz bin Salman, Minister of Energy

The Saudi Cabinet approval for power tariffs at SAR 0.18 per kilowatt/ hour for the companies operating in cloud computing across the Kingdom will encourage investments in this industry, Prince Salman bin Abdulaziz, Minister of Energy, said.

The decision will contribute to developing and applying advanced technology in all business sectors. It will also mobilize the pivotal and integrative role of the electricity sector and its partners in the telecommunications and information technology industry. 

Beneficiaries from this tariff include the existing cloud computing players, which are licensed by the Communications and Information Technology Commission (CITC).

The Electricity & Cogeneration Regulatory Authority (ECRA) will issue the rules and application measures of the tariff, which will cover the methodology for applying to benefit from this tariff in coordination with the CITC, the Kingdom’s cloud computing industry regulator, the Saudi minister added.

Elsewhere, Abdullah Alswaha, Minister of Communications and Information Technology, said the tariff, in light of its competitive advantage, enhances Saudi Arabia’s pivotal role as a digital hub to link continents through expanding the scope of data processing and encouraging investments in data centers and cloud computing services.

This move will have a direct impact on boosting the growth of data-based digital economy, accelerate the entry of digital products into the markets and create a favorable environment for digital entrepreneurship.