Saudi Arabia’s Communications, Space, and Technology Commission (CST) has just concluded public consultation on a groundbreaking draft law: the Global Artificial Intelligence (AI) Hub Law.
This proposed legal framework could redefine how AI, data centers, and cross-border data flows are governed—by embedding sovereignty at the core of data compliance.
Three Innovative Data Center Models
The draft outlines a tiered system for hosting foreign data in KSA:
Private Centers: Sovereign enclaves for foreign governments, protected under diplomatic-style immunity.
Extended Centers: Co-governed models preserving guest country legal authority while operating under Saudi oversight.
Virtual Centers: Operated by licensed Saudi providers for multinational clients, with data governed by the client’s jurisdiction but subject to Saudi regulatory approval.
A Dual Jurisdiction Mechanism
A rare legal innovation: allowing foreign entities to apply their own data laws inside Saudi Arabia while complying with domestic oversight. This dual compliance model walks the line between national control and international interoperability.
Built-in Safeguards and Strategic Flexibility
Saudi regulators retain the right to intervene for national security, terminate incompatible agreements, and enforce registration and audit requirements.
This could be a turning point: not just for Saudi Arabia’s ambition to become an AI and data hub, but for global models of data sovereignty, cross-border governance, and regulatory innovation.
Source: https://www.middleeastainews.com/p/saudi-draft-globa-ai-hub-law