Saudi Aramco has signed a memorandum of understanding (MoU) with Microsoft to advance a series of digital initiatives in Saudi Arabia, focusing on accelerating the deployment of industrial artificial intelligence (AI), strengthening digital capabilities, and enhancing talent development.

The agreement builds on the two companies' existing collaboration and aims to support Aramco's broader digital transformation efforts. Under the MoU, Aramco plans to explore AI-driven industrial solutions leveraging Microsoft Azure cloud infrastructure, with the objective of improving operational efficiency and reinforcing its digital foundation.

According to the announcement, the MoU concentrates on four core areas:

Digital sovereignty and data residency
The two parties will jointly develop a roadmap for deploying solutions on Microsoft’s cloud platform in alignment with national data residency requirements. The initiative is intended to strengthen governance and control mechanisms while supporting Aramco’s digital objectives.

Operational efficiency and digital infrastructure
The partnership will explore ways to optimize and streamline the digital systems supporting Aramco’s global operations, with a view toward building a more integrated and unified digital infrastructure.

Industrial ecosystem collaboration
Aramco and Microsoft plan to establish cooperation pathways with Saudi-based technology integrators and industry partners, promoting broader adoption of AI across the country's industrial value chain.

Joint innovation in industrial AI intellectual property
The companies will explore co-developing and commercializing AI-powered operational systems for the energy sector. The initiative seeks to establish advanced industrial AI solutions and potentially contribute to a broader innovation ecosystem in this domain.

In parallel with technology collaboration, the two companies intend to launch programs aimed at accelerating digital and technical skills development in Saudi Arabia. Focus areas include AI engineering, cybersecurity, data governance, and product management, with measurable training targets.

The cooperation will build on Microsoft's existing initiatives in the Kingdom, where the company has already delivered cloud, AI, and data-related training programs to thousands of participants.

The MoU reflects Saudi Aramco's continued efforts to strengthen its digital capabilities and explore industrial AI applications in partnership with global technology providers, while aligning deployment strategies with national regulatory and data governance requirements.