IBM: Saudi AI Sovereignty No Longer Just About Data Location

Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
TT

IBM: Saudi AI Sovereignty No Longer Just About Data Location

Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock
Saudi digital sovereignty is no longer only about where data is stored, but about control over infrastructure, models and operations. Shutterstock

Digital sovereignty in Saudi Arabia is no longer just about where data is stored. It is now about who controls the infrastructure, models, operations, keys, and digital supply chains when conditions change.

That question dominated an IBM roundtable on digital sovereignty in the Kingdom, as Saudi Arabia accelerates the digital agenda of Vision 2030 and raises its ambitions in artificial intelligence, cloud infrastructure, operational resilience, and governance.

A gap between awareness and readiness

IBM says Saudi market findings show that 90% of Saudi executives believe AI sovereignty should be part of their business strategy in 2026. But the discussion pointed to a much lower level of actual readiness, with participants saying only “two to three out of every 10” clients in the Kingdom are adequately prepared.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia, said the debate is no longer theoretical or something to postpone. It is “a discussion happening today,” he said.

The gap, he said, is not about awareness. It is about the distance between believing sovereignty belongs in strategy and having the ability to execute it. Many organizations, he added, still approach sovereignty in traditional terms, asking “where is the data?” and “where is the computing?” even as the issue has become far wider.

Ayman AlRashed, IBM’s regional vice president in Saudi Arabia (IBM)

A Saudi study by the IBM Institute for Business Value found that 63% of Saudi leaders are concerned about reliance on specific regions for computing resources, above the global average. Another 85% believe geopolitical and economic issues threaten technology investments.

At the same time, 73% of Saudi leaders believe that geopolitical volatility could create new business opportunities in 2026 if organizations adapt.

Sovereignty is not just location

During the session, attended by Asharq Al-Awsat, Sabine Holl, IBM’s vice president of technical sales and chief technology officer for the Middle East and Africa, said sovereignty has moved from a regulatory demand to a strategic priority.

Holl said the debate began with data sovereignty, whether data was located inside or outside the country. But recent events, including data center outages and geopolitical tensions, have shown that location alone does not guarantee control.

Digital sovereignty, she said, is now tied to control over data, infrastructure and technology development.

IBM divides the concept into four pillars: operational sovereignty, data sovereignty, technology sovereignty and AI sovereignty. In that sense, sovereignty is no longer merely compliance with local data-residency rules. It is the continuing ability to know who can access systems, who manages the environment, where models run and how an organization can prove compliance when needed.

Holl put it plainly: Sovereignty is not just about location.

The question, she said, is not only whether data is stored in a local data center. It is who can control it, under which identity it can be decrypted and whether the organization has a recovery and operating plan if a regional outage or sudden crisis hits.

IBM says Saudi market findings show that 90% of Saudi executives believe AI sovereignty should be part of their business strategy in 2026. Shutterstock

AI complicates the equation

AI makes the issue harder. Models and agents do not simply store or read data. They can access multiple sources, interpret information, suggest decisions or take action inside an organization’s systems.

That changes the sovereignty question. Does an organization control only where its data sits, or does it also control what AI does with that data?

That explains IBM’s focus on what it calls a new operating model for AI. The company says organizations advancing in AI are not merely deploying more tools. They are redesigning how they work. IBM says the model rests on four connected systems: agents, data, automation and hybrid.

In this context, IBM announced the next generation of Watsonx Orchestrate to coordinate and manage AI agents across different environments, along with capabilities linked to real-time data through Confluent, watsonx.data, IBM Concert for intelligent operations and IBM Sovereign Core for operational sovereignty.

During the session, Asharq Al-Awsat asked whether sovereignty becomes harder when agents enter enterprise workflows, because data is no longer only stored, but also used, interpreted and acted upon.

Holl said organizations now face a reality in which agents are spreading “everywhere,” inside their own environments and on other platforms, making “supervision” and auditability essential. She said part of IBM’s operating model includes what she described as an “agent control layer” to manage and monitor those agents.

From cloud to operational sovereignty

IBM sees a hybrid cloud strategy as central to building sovereignty.

Holl said cloud changed how sovereignty is viewed, especially in the Middle East and Africa, where laws and requirements on data access and use emerged early. That helped shape IBM’s hybrid cloud strategy, she said, so that the benefits of cloud are not limited to public environments, but can also apply to private clouds and on-premises systems.

The “promise of cloud,” built on the idea that everything would move to the cloud, has not fully materialized, Holl said. Many organizations still operate across hybrid and multi-cloud environments without sufficient transparency or clear audit and control capabilities.

If an organization cannot answer “at the push of a button” where systems are running, who controls them and whether they comply with requirements, then it is not truly sovereign, she said.

IBM calls this “sovereignty by design.”

Holl said an existing environment cannot simply be patched later to become sovereign. She compared it to a small boat on a lake, saying it cannot simply be repaired into a ship capable of crossing an ocean and facing a storm.

In practice, that means sovereignty must be built into the architecture from the start, through portability, choice, open platforms, recovery plans and control over keys and identities.

IBM says human skills are the currency of the AI economy. Shutterstock

Turning sovereignty into operations

IBM says IBM Sovereign Core is designed to operationalize and verify digital sovereignty, rather than just a written policy.

The company describes it as a platform that helps governments, organizations and service providers build AI-ready sovereign environments, with the ability to prove control and compliance across hybrid settings.

Dinesh Nirmal, senior vice president, products, software at IBM, said AI has made sovereignty “a runtime requirement, not a policy statement.”

AlRashed said that as AI becomes part of institutional and national strategies, organizations need to innovate “without compromising operational authority, trust or regulatory requirements.”

The platform includes a customer-managed control layer, identity services, encryption, data within sovereign boundaries, continuous compliance monitoring, automated audit evidence, prebuilt regulatory frameworks and controlled deployment of AI models, inference and agents within defined sovereign limits.

It also relies on open technologies, including Red Hat OpenShift and Red Hat AI, and supports a partner ecosystem that includes AMD, Dell, Mistral, MongoDB and Palo Alto Networks.

Holl said the point is not that every organization must build a local server or chip. It is that organizations must be able to choose and move between components and environments when conditions change.

Shortages of graphics processing units, memory and chips could become a sovereignty risk, she said, if an organization is locked into one supplier or an architecture it cannot replace.

Resilience is part of sovereignty

A key theme in the discussion was that sovereignty cannot be separated from operational resilience. An organization that cannot recover from an outage, cyberattack or geopolitical crisis does not, in practice, have the control it believes it has.

Holl said some backup and disaster recovery strategies failed because they were not seriously tested or treated as an operational necessity rather than a useful option.

In Saudi Arabia, the issue is gaining weight as digital transformation expands across sensitive sectors, including government, energy, finance, telecommunications and health care.

Participants said some entities, especially government bodies, are no longer just waiting for policies to be completed. They are moving practically to shift workloads to sovereign providers, or to ensure that those managing environments are located inside the Kingdom.

Sovereignty and human skills

The discussion was not limited to technology. AlRashed linked digital sovereignty to people, saying AI cannot deliver value without skills and trust in systems.

“Human skills are the currency of the AI economy,” he said. Some organizations, he added, deploy AI but fail to achieve the expected value because users lack the confidence or ability to benefit from it.

That adds another layer to the Saudi debate. Sovereignty is not only about who owns the data center or cloud platform. It is also about who operates it, who understands the risks, who can prove compliance and who can change course when rules, markets or threats shift.

In IBM’s 2026 trends report, 88% of Saudi executives said agentic AI helps them make better, faster decisions during disruption.

But that optimism creates a parallel challenge. The more agents can support decisions or carry out tasks, the greater the need for clear governance, auditing, lifecycle management for models and agents and the ability to stop or adjust what is not working as required.

A Saudi model taking shape

Saudi Arabia appears to occupy a distinct place in this debate. Holl described it as an example of a market building local data centers and working with global cloud providers to bring technology into the country, allowing innovation within local regulatory frameworks.

At the same time, the figures show that concern about external dependence on computing, chips and global providers is greater than the global average.

The debate, then, is not about choosing between full isolation and full openness. It is about building a model that balances access to global innovation with local control, the ability to prove compliance and the operation of AI within clear boundaries.

In this context, digital sovereignty becomes part of the operating architecture of the digital economy, not just a legal clause or regulatory requirement.

As AI moves from pilots to operations, and from models to agents, the question raised by the session becomes more urgent for Saudi organizations: Do they merely have data inside their borders, or do they have full control over what happens to that data, who uses it, how models and agents operate on it and what happens when conditions change?



Huawei Launches New Foldable Smartphone as Competition with Xiaomi, Apple Heats Up

The Huawei logo is seen in this illustration taken on January 29, 2025. (Reuters)
The Huawei logo is seen in this illustration taken on January 29, 2025. (Reuters)
TT

Huawei Launches New Foldable Smartphone as Competition with Xiaomi, Apple Heats Up

The Huawei logo is seen in this illustration taken on January 29, 2025. (Reuters)
The Huawei logo is seen in this illustration taken on January 29, 2025. (Reuters)

Huawei launched a new version of its flagship foldable smartphone on Monday as it seeks to defend its lead in the Chinese market for premium handsets against Apple and Xiaomi, both of which are also unveiling new products.

The new Mate XT2 folds out twice to open into a tablet-sized screen and ‌features Huawei's ‌new Kirin 9050 Pro chip.

Huawei ‌says ⁠the chip's design ⁠allows it to deliver more computing power while using less electricity, helping the company overcome US restrictions on access to advanced technology.

Xiaomi launches a rival foldable phone later on Monday, while Apple unveils its latest ⁠iPhone series on Wednesday, with expectations ‌high that it ‌too will be unveiling a foldable phone.

The Mate XT2 ‌features a redesigned folding mechanism, improved water ‌resistance as well as an optional screen that prevents people nearby from seeing what is displayed. It also has upgraded cameras and delivers ‌42% better overall performance than its predecessor, based on company tests.

Huawei, which ⁠does ⁠not sell in the US due to sanctions, leads China's smartphone market with a 22.6% share in the second quarter, ahead of Apple's 18.1%, according to consultancy IDC. Xiaomi has 12.4% of the market.

Huawei is even more dominant in folding phones, accounting for 68% of shipments in China in the second quarter, according to Smart Analytics Global, a US-based research company.


AI Data Centers Are Less Thirsty Now, Tech Giants Say

 A drone view shows construction underway on Microsoft's ATL11 data center in Union City, Georgia, US, September 1, 2026. (Reuters)
A drone view shows construction underway on Microsoft's ATL11 data center in Union City, Georgia, US, September 1, 2026. (Reuters)
TT

AI Data Centers Are Less Thirsty Now, Tech Giants Say

 A drone view shows construction underway on Microsoft's ATL11 data center in Union City, Georgia, US, September 1, 2026. (Reuters)
A drone view shows construction underway on Microsoft's ATL11 data center in Union City, Georgia, US, September 1, 2026. (Reuters)

Data centers are running into a wall of public anger in the United States over their thirst for water and power.

The tech giants spending billions of dollars on them say the water part, at least, is solvable.

Data centers are the warehouses full of computer servers that run the internet and increasingly artificial intelligence.

The computers get hot, and keeping them cool takes water.

American chip giant Nvidia said in a June report that it can eliminate water consumption almost entirely at some facilities when deploying DSX, its newest system for designing and managing AI data centers.

It's a bold claim, and one the industry is under mounting pressure to make good on.

In 2025, data centers consumed 222 billion liters (59 billion gallons) of water worldwide for cooling, according to consultancy Rystad Energy.

Without adaptive measures, the figure could nearly triple to 644 billion liters by 2030, Rystad estimates. Steps to limit the growth could keep it under double.

Nvidia's new method uses a closed-loop cooling system in which liquid flows directly through the servers, as close as possible to the chips, whose temperature can rise above 80C (176F).

The problem is that "there's a pretty direct trade-off between how much water is used and how much energy is used" for temperature control, said Andy Masley, an independent researcher who covers AI and data centers.

Cutting back on water use usually means more power as the liquid in those sealed pipes still has to be cooled down somehow, usually by blowing air over it -- and that takes electricity.

Nvidia gets around some of this by letting the liquid enter the servers warmer than usual, at 45C.

Most other closed-loop systems ran at about 32C in 2024, according to the Uptime Institute, which certifies data centers.

By starting with warmer water, Nvidia does not need to pump in cooled air year-round.

"Simple fans circulating the air" are often enough, though sometimes a mix of methods is needed, said Josh Parker, Nvidia's head of sustainability.

At sites in extreme climates, or during a heatwave, chill airflow or water evaporation is still necessary.

- Public relations -

Microsoft, Amazon Web Services (AWS) and Meta told AFP that they also use closed-loop systems, which they said involve no net water loss.

The two cloud computing giants, which have been expanding their already huge data center footprints, used more water overall between 2022 and 2025, but their water use efficiency improved by 25 percent at Microsoft and 37 percent at AWS, according to their most recent sustainability reports.

There is no industry-wide consistency, however, in how companies report data on so-called environmental, social and governance (ESG) efforts.

Elon Musk's SpaceX, now a major player in data centers after it acquired his artificial intelligence company xAI, has never published an ESG report.

In June, ratings agency MSCI gave SpaceX its lowest ESG score.

"Because water is generally much cheaper than electricity," companies have less incentive to cut water use on cost grounds alone, said Shaolei Ren, an engineering professor at the University of California, Riverside.

"There are incentives," Ren said, but they have more to do with public relations amid the growing backlash to data centers across the United States.

Another obstacle is that upgrading an older data center to newer, less thirsty technology is expensive.

That may matter less than it sounds.

Older data centers are smaller and less powerful than the enormous new ones being built now, so they need less cooling in the first place, said Minh K. Le, who leads data center and hydrogen research at Rystad.

And the water a data center uses directly is only part of the story.

Water is used to generate the electricity that powers the data center, and to manufacture its chips and servers.

In the United States, that hidden water use can be twice the amount a data center consumes on its own.


From Dance Floor to War: China Readies Humanoid Robots for Combat

A UBTech humanoid robot, Walker S, picks up an object operated by a staff member, during a demonstration simulating a factory's assembly line, at the robotics exhibition center Robot World, during an organized media tour to the Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, in China May 16, 2025. (Reuters)
A UBTech humanoid robot, Walker S, picks up an object operated by a staff member, during a demonstration simulating a factory's assembly line, at the robotics exhibition center Robot World, during an organized media tour to the Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, in China May 16, 2025. (Reuters)
TT

From Dance Floor to War: China Readies Humanoid Robots for Combat

A UBTech humanoid robot, Walker S, picks up an object operated by a staff member, during a demonstration simulating a factory's assembly line, at the robotics exhibition center Robot World, during an organized media tour to the Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, in China May 16, 2025. (Reuters)
A UBTech humanoid robot, Walker S, picks up an object operated by a staff member, during a demonstration simulating a factory's assembly line, at the robotics exhibition center Robot World, during an organized media tour to the Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, in China May 16, 2025. (Reuters)

At the World Humanoid Robot Games in China last month, robots jumped, boxed and danced. Some fleet-footed bots ran faster than Usain Bolt over 100 meters. Spectators cheered the machines’ improving capabilities and their meme-worthy stumbles.

Two days after the Games ended, the People's Liberation Army's official newspaper drew its own conclusions from the show. The PLA Daily called for researchers to accelerate the transfer of cutting-edge technologies from laboratories to military training grounds for robotic "combatants."

China's defense establishment is accelerating research into humanoids’ military uses and planning for their eventual wartime deployment, according to a Reuters review of more than 100 Chinese military procurement notices, academic studies, patents, official publications, government records and defense-company materials.

Military institutions are testing humanoids against battlefield requirements, seeking to acquire robots and technologies to train them, and studying how they might function alongside troops, the previously unreported records show. The work gained momentum in 2025 and 2026, focusing on robot perception, manipulation, and training data.

Chinese manufacturers accounted for about 95% of global humanoid shipments in 2025, according to BofA Global Research. That commercial dominance gives the PLA access to an expanding industry while developing its own military applications.

China’s robot defense research underscores how rapidly military technologies are evolving globally. In the Russia-Ukraine war, semiautonomous drones that use artificial intelligence for navigation and targeting have transformed reconnaissance and attack, while robots carry supplies and retrieve casualties. Reuters has previously documented the Chinese military’s efforts to learn from Europe’s deadliest conflict since World War II.

That evolution is driving worldwide military interest in autonomous systems.

"Going where we don’t want humans to go is one of the most compelling reasons to develop robots in the first place," said Dennis Hong, a professor of mechanical and aerospace engineering at UCLA. "If losing a robot means avoiding the loss of a human life, then the robot can become expendable."

China's defense ministry and the National University of Defense Technology (NUDT), the PLA’s premier research institution, ‌didn’t respond to requests ‌for comment about humanoid robots’ military applications.

Reuters found no evidence that China has deployed an armed humanoid with an operational PLA unit. The robots remain energy-intensive ‌and unreliable ⁠outside controlled demonstrations. Battlefield ⁠environments pose many variables and challenge robots’ abilities in unpredictable ways, said Aaron Johnson, a professor of mechanical engineering at Carnegie Mellon University.

URBAN ASSAULT FORCE

Already, China has a vision for humanoid robots in urban warfare.

Six "combat robots" – humanoids, robot dogs or unmanned vehicles – would be split up between two assault teams. Working with ground troops, the robots would clear an enemy-occupied building, floor-by-floor and room-by-room.

That scenario was described in an August 2025 paper by researchers at NUDT’s test center in Xi’an. The study modeled an urban assault force using equipment the authors projected could be available within five to 10 years. It didn’t specify the robots’ rules of engagement, the weapons they would carry, nor how they would handle civilian encounters.

Improvements in balance, perception and endurance could make humanoids useful in places including buildings, tunnels and ship interiors, said Juo-Min Chou, a researcher at Taiwan's Institute for National Defense and Security Research. "Their two hands and two feet could, in theory, combine mobility, climbing and manipulation," she said.

For simpler reconnaissance or logistics missions, however, quadruped, tracked or wheeled robots would generally be cheaper and easier to deploy at scale, Chou added.

Chinese military commentary envisions an expanding range of roles for humanoids. A July 2025 article in PLA Daily argued that humanoid ⁠missions could eventually evolve "from supporting combat toward primary combat" and discussed how robots might be authorized to fire on a living target that had been verified ‌by a human.

In December, the PLA Eastern Theater Command released an AI-generated montage that showed military robots, including humanoids and quadrupeds, overwhelming Taiwan's defenses in a hypothetical ‌future conflict.

China isn’t alone in exploring battlefield uses for humanoids. Last year, the US Army launched a competition to develop "militarized humanoid capabilities" that could eventually work alongside soldiers. The Army said potential roles included reconnaissance, security, obstacle clearing, hazardous-material operations and offensive ‌and defensive missions in urban terrain.

Up to 10 finalists were due to test their systems with US military experts this year, with as much as $1.25 million available for follow-on contracts.

The US robotics industry, however, trails ‌far behind China in developing two-legged and four-legged machines. Reuters reported last month that China’s Unitree robots – among the world’s leading producers of humanoids and quadrupeds – based designs for its best-selling robot dogs on innovations financed by the US military.

The Pentagon and the US Army didn’t comment for this story.

INFILTRATING ENEMY LINES

Chinese interest in humanoid robots’ military applications began to pick up in 2024. That year, NUDT and China’s Academy of Military Sciences hosted a defense-technology forum that included a session on military applications for humanoid systems, according to NUDT’s website. Neither institution responded to Reuters’ questions.

A year later, NUDT explicitly framed humanoid robots as battlefield tools. A university competition in June 2025 featured an event that simulated "infiltration behind enemy lines," requiring robots to enter an area, map it and locate targets, ‌according to its website. Another envisioned robots conducting identity checks, discipline inspections and security patrols at military bases.

The military-research university described the competition in part as a proving ground for humanoids to eventually "move toward the battlefield."

Procurement records around that time reflected that ultimate goal.

In May 2025, the PLA issued a tender to ⁠purchase a humanoid robot, including installation and technical training. Four months ⁠later, a procurement notice that listed an NUDT email as its contact address sought an "embodied humanoid robot intelligent perception and dexterous operation system."

The records contained few specifics. Reuters couldn’t determine whether the tenders were filled, and if so, which companies won or which robot models were supplied.

In June this year, the PLA budgeted about $300,000 for a system to collect and label camera, radar and motion data for humanoids, including information about terrain they could traverse, according to another military procurement document.

The specifications show Chinese military interest is extending from robot bodies into the perception, manipulation and training systems that defense scholars say are essential for humanoids to move beyond controlled demonstrations.

REMOTE OPERATION

By 2026, humanoid development had spread beyond military academia into China's defense industry.

The Fuxi robot made by Norinco, a state-owned defense conglomerate, is one example. Company materials published in August described the full-size humanoid as capable of sentry duty, all-weather reconnaissance, intelligent patrol and fulfilling dangerous roles.

Fuxi can be paired with Norinco’s teleoperation system, which allows a human operator to control a humanoid remotely, according to the company. Removing the need for a robot to make all decisions autonomously would address what many robotics experts say is the biggest challenge with humanoids.

Norinco didn’t respond to a request for comment.

Malcolm Davis, a senior analyst at the Australian Strategic Policy Institute, said he didn’t see humanoid robots as practical battlefield systems at present. "But in five to 10 years," he said, "they could very well be."

Even if remotely operated today, humanoid systems designed for autonomous deployment would eventually need to navigate ethical dilemmas. The laws of war require forces to distinguish combatants from civilians and to refrain from attacking wounded or surrendering fighters.

The International Committee of the Red Cross has cautioned that autonomous weapons may struggle to interpret signs of surrender reliably because such judgments can depend on context, conduct and intent.

The US military requires autonomous weapons to undergo legal review and realistic testing and for commanders and operators to exercise appropriate judgment over the use of force. China’s defense ministry said in March that AI-powered weapons should remain under human control.

Those concerns haven’t deterred China's exploration of humanoids’ military uses.

Wang Yonghua, a researcher at China’s Academy of Military Sciences, wrote in a November commentary that humanoids face unresolved problems in movement, perception and intelligence. Technical breakthroughs, lower manufacturing costs and industrial-scale production would be needed for humanoids to become widespread military systems.

If those conditions are met, Wang wrote, "humanoid robots will stream onto the battlefield."