Google (GOOG) announced a strategic partnership with Saudi Arabia’s state-owned oil company, Saudi Aramco, to develop a cloud infrastructure. The “high performance, low-latency” cloud service will help the oil-dependent country adjust to the rapidly accelerating digital adoption in the Gulf region, spurred by Covid-19.
In a statement made last Monday, Saudi Aramco predicts a market opportunity for themselves and Google worth up to $10 billion by 2030. Google believes investing in the development of a digital cloud infrastructure will help Saudi businesses grow and scale their operations and be more competitive at home and abroad.
Google has been eyeing this opportunity with Saudi Arabia since 2018. Its main competitors in the digital cloud infrastructure market are Microsoft (MSFT) and Amazon (AMZN). Google currently lags behind both when it comes to international regions served and availability zones.