The Saudi Cabinet, in its session chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, commended the launch of the world's largest government data center in Riyadh, named "Hexagon." The Cabinet affirmed that this landmark project represents a major strategic leap towards strengthening the Kingdom's sovereignty over its data, supporting its digital economy, and solidifying its position as a leading global hub for technology and data, in line with the objectives of the Kingdom's Vision 2030.

General context: Digital transformation and Vision 2030

The launch of the Hexagon Center comes within the framework of Saudi Arabia’s ongoing efforts to accelerate digital transformation across all public and private sectors. Since the launch of Vision 2030, the Kingdom has prioritized building a sustainable, data-driven, and AI-powered economy. Robust digital infrastructure, such as large data centers, is the cornerstone of achieving these goals, providing the computing and storage capacity necessary to support digital initiatives, AI applications, the Internet of Things, and smart cities.

The importance of Hexagon for data sovereignty and security

The Hexagon Center represents a significant leap forward in the concept of “data sovereignty,” the principle that a country’s data should be governed by its own laws and regulations. By hosting sensitive government data within the Kingdom’s borders, the project ensures its protection from external interference and strengthens national cybersecurity. It also empowers the government with complete control over how data is collected, stored, and processed, supporting strategic decision-making based on accurate and reliable analysis and enhancing public and investor confidence in the Kingdom’s digital ecosystem.

Expected economic and technological impact

Domestically, Hexagon is expected to contribute to creating an integrated digital ecosystem that supports the competitiveness of the national economy. The project will encourage significant investments from global technology companies seeking to offer their services in the Saudi market, while adhering to data localization requirements. It will also serve as a platform to empower innovation among local startups and entrepreneurs in advanced technology fields. Regionally and internationally, this mega-project reinforces Riyadh's position as a digital capital in the Middle East and establishes the Kingdom as a key player in the global data center market, opening new avenues for international cooperation in the fields of digital economy and artificial intelligence.

Other decisions in the Cabinet meeting

In addition to commending the “Hexagon” project, the Cabinet discussed a number of important local and regional issues. The Cabinet was briefed on the latest developments in the region, reiterating the Kingdom’s support for efforts to achieve security and stability in Yemen. The Cabinet also affirmed the Kingdom’s continued humanitarian role in providing relief to the Palestinian people in the Gaza Strip, emphasizing that the Palestinian cause will remain firmly rooted in the conscience of the Saudi leadership and people. On the domestic front, the Cabinet approved several new regulations and agreements, including the rules of procedure for the National Minerals Program, the regulations for the National Commission for Education, Culture and Science, and the extension of the National Information Technology Sector Development Program until 2030.

European banks are preparing to launch a large-scale plan that could lead to the elimination of nearly 200,000 jobs in the coming years, a move reflecting the rapid adoption of artificial intelligence and automation technologies within the banking sector. This strategy aims to drastically reduce operating costs and boost efficiency in the face of economic challenges and increasing competition from financial technology (FinTech) companies.

General context and digital transformation

This transformation is not a sudden occurrence, but rather the culmination of decades of digital development in the banking sector. From the introduction of ATMs in the 1970s, through online banking in the 1990s, to mobile banking apps, the sector has been steadily moving towards reducing its reliance on traditional branches and manual processes. However, the current wave, driven by artificial intelligence, is the most impactful and profound, now targeting cognitive functions that were previously considered immune to automation.

The importance of the event and its expected impact

According to estimates by Morgan Stanley, these potential job cuts could represent around 10% of the total workforce at approximately 35 major European banks by 2030. The firm anticipates that the use of artificial intelligence will boost productivity by up to 30% in critical areas such as data processing, regulatory compliance, risk management, and customer service via advanced chatbots. The layoffs are expected to primarily affect administrative, clerical, and back-office roles whose tasks can be easily automated.

Economic and social repercussions

Regionally, this plan raises significant economic and social concerns in Europe. The loss of such a large number of jobs will put pressure on labor markets and require proactive government responses and policies to retrain and reskill the affected workforce. Internationally, this European move reflects a global trend, as banks in North America and Asia face similar pressures to adopt technology and reduce costs, making this transformation a global phenomenon that will reshape the entire banking industry.

The challenge of balancing technology and the human element

Conversely, industry experts and analysts have warned of the risks of over-reliance on artificial intelligence. While the technology contributes to increased efficiency, there is growing concern about the long-term loss of accumulated human expertise and essential banking skills. The biggest challenge for bank leaders lies not only in reducing costs but also in striking a delicate balance between leveraging technological capabilities and retaining skilled human resources capable of handling complex tasks and making critical decisions that still require human judgment.

In a strategic move aimed at strengthening the national digital infrastructure, the General Authority for Survey and Geospatial Information and the National Housing Services Company announced the integration of the navigation services of the “KSA Map” and “Baladi Plus” applications into a unified national entity called “KSA Map.” This initiative aims to consolidate existing efforts and eliminate duplication among local applications, serving the national interest and aligning with the Kingdom’s future directions.

This announcement comes within a broader context aligned with the objectives of Saudi Vision 2030, which places digital transformation and the development of a knowledge-based economy at the heart of its priorities. The Kingdom is actively working to build a comprehensive and independent digital ecosystem capable of meeting the needs of citizens, residents, and the public and private sectors. Unifying mapping and geospatial information platforms represents a pivotal step in this direction, as this data is the lifeblood of modern urban planning, logistics, emergency management, and sustainable development.

The merger primarily aims to achieve “spending efficiency” by consolidating the financial, human, and technological resources previously allocated to developing and operating two separate applications. By focusing investment on a single platform, higher quality and faster development of features and services can be achieved. Furthermore, the project represents a cornerstone for achieving “national sovereignty in data and geospatial technology.” A national platform ensures that sensitive geographic data remains within the Kingdom’s borders and under the supervision of national authorities, thus enhancing national security and protecting user privacy.

This move is expected to have a significant positive impact across various levels. Locally, users will benefit from a reliable, high-quality national navigation application that provides accurate and constantly updated data, with the potential for future integration with other government services such as municipal, housing, and traffic services, thus offering a seamless and integrated experience. Economically, the presence of a strong national alternative to foreign products dominating the market will stimulate local innovation, create new opportunities for Saudi companies specializing in geospatial technologies, and support the localization of advanced technical jobs.

In the long term, the ambition of the unified KSA Map platform extends beyond simply meeting local needs; it aims to become a product that rivals global best practices and applications. The success of this project will enhance the Kingdom's position as a leading regional hub for technology and digital innovation, and could pave the way for exporting these technologies and expertise to other countries in the region, thus solidifying its role as a significant player in the global digital economy.