Activists Raise Alarm as Microsoft Invests $2B in Saudi Cloud Facility, Cite Data Privacy Concerns

Microsoft Corp MSFT disclosed a $2 billion investment to build a data center region in Neom during LEAP 2023, an annual tech conference in Riyadh, Saudi Arabia. 

The event brings together high-profile business leaders and Saudi officials, spearheaded by Crown Prince Mohammed bin Salman.

Also Read: Saudi Public Investment Fund Picks Shares In Alphabet, Zoom, Microsoft

Neom is a development project covering a 10,200-square-mile area in northwestern Saudi Arabia's Tabuk Province involving a "secure data center," a "mixed-reality metaverse," and "advanced robotics." 

The project has a total estimated cost of $1 trillion, with significant funding from the Kingdom of Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF).

Critics flagged concerns about the lack of data privacy protections in Saudi Arabia and the potential risks posed by Microsoft's data center region, the New York Times reports.

The debate over data privacy intensifies as the Kingdom of Saudi Arabia looks to implement its first data protection plan, the Personal Data Protection Law (PDPL). 

The controversy surrounding Neom's development got a boost from accusations against Crown Prince Mohammed bin Salman, including allegations of ordering the brutal killing of journalist Jamal Khashoggi. 

Microsoft has defended its investment, stating that the data center region will address organizations' data residency, security, privacy, and compliance needs. 

Price Action: MSFT shares traded higher by 0.46% at $346.70 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.