Saudi Telecom Co. (stc) and Public Investment Fund-backed Humain have extended their memorandum of understanding by six months to establish a joint venture focused on developing artificial intelligence data centers in Saudi Arabia.

According to a filing on Tadawul, the extension follows the expiry of the original agreement signed in December and provides additional time to complete regulatory, operational and commercial requirements ahead of finalizing the venture.

The proposed partnership will be established through stc subsidiary Digital Centers for Data and Telecommunications Co. (Center3), with Humain holding a 51% stake and stc owning the remaining 49%.

The joint venture aims to develop and operate AI-focused data centers with a planned capacity of up to 1 gigawatt. The project’s initial phase is expected to deliver up to 250 megawatts of capacity, subject to customer commitments.

stc said the extension reflects the scale and strategic importance of the project and will allow both parties to complete remaining negotiations and regulatory procedures. The company added that tangible progress has been made in finalizing the venture’s commercial, operational and regulatory framework.

The initiative is intended to support Saudi Arabia’s digital transformation ambitions by expanding advanced digital infrastructure and strengthening domestic AI capabilities.

It also aligns with the Kingdom’s Vision 2030 objectives and the National Strategy for Data and AI, which seeks to position Saudi Arabia among the world’s leading data- and AI-driven economies.

The planned venture will combine Center3’s data center infrastructure, operational expertise and regional connectivity with Humain’s focus on developing end-to-end AI capabilities, supporting the deployment of high-capacity, low-latency infrastructure.

stc said the extension currently has no material financial impact and that further updates will be disclosed as the project progresses.