Saudi Arabia’s Energy Transformation Faces a New Test: Turning Digital Ambition Into Action

Saudi Arabia’s energy transformation is becoming increasingly visible, with large-scale solar and wind developments, expanding infrastructure and efforts to build a more diversified electricity system taking shape across the Kingdom.

The scale of the ambition is substantial. Under Vision 2030, Saudi Arabia has set a target of generating half of its electricity from renewable sources by 2030. According to the General Authority for Statistics, the Kingdom had 6,551 megawatts of renewable energy capacity installed by the end of 2024, spanning nine solar projects and one wind project. Grid-connected renewable capacity reached 4.1 gigawatts during the year, including a record 3.7 gigawatts added in 2024.

But behind the physical expansion of the energy sector is another transformation that could prove just as important: digitization.

Building the Digital Energy Infrastructure

As Saudi Arabia adds more renewable generation and modernizes its energy infrastructure, managing the system becomes increasingly complex. Networks, real-time data and advanced technologies are becoming essential to maintaining efficiency and reliability.

Private 5G networks, edge computing and artificial intelligence are among the technologies increasingly being deployed to monitor remote operations, identify potential equipment problems and support faster decision-making.

Abdullah Al Khorami, Chief Business Officer at Etihad Salam Telecom Company, argues that the benefits of digitalization in the energy sector are already demonstrated by projects inside Saudi Arabia.

One example is the Khurais oil field, where Saudi Aramco reported a 15% increase in oil production following the deployment of 40,000 sensors and advanced process controls. At the Fadhili gas plant, AI technology helped cut amine and steam consumption by between 10% and 15%.

“These are Saudi results on Saudi assets, and they set the benchmark every operator in the kingdom now works against. The technology works, and the business case is proven,” Al Khorami said.

From Digital Ambition to Execution

For Saudi Arabia, the next challenge may be less about identifying useful technologies and more about deploying them successfully at national scale.

Al Khorami says many digital initiatives struggle when organizations attempt to move beyond individual pilots and integrate new technologies into large, complex operating environments.

“This is where most programs stall, and where the energy economy will be won over the next decade. The scarce resource now is the capacity to execute at national scale,” he said.

The problem extends well beyond the energy industry. Research from BCG has estimated that around 70% of digital transformation programs fail to achieve their intended objectives. Fragmented technology systems, connectivity problems, cybersecurity concerns and pilot projects that never progress to full deployment can all contribute to the problem.

In energy, those difficulties can become even more complicated because companies must connect operational technology with IT systems across geographically dispersed facilities.

“The failure comes from accumulated friction: connecting systems that were never built to work together, at a scale where every gap compounds,” Al Khorami said.

Connecting Remote Energy Operations

Saudi Arabia already has a substantial digital foundation. The Kingdom’s digital economy is estimated at around $132 billion and accounts for approximately 15% of GDP.

Its telecommunications infrastructure also provides a strong platform for further digitalization. GSMA Intelligence ranked Saudi Arabia among the global leaders in 5G, with an average download speed of 314 Mbps in 2025 across its analysis of 187 countries.

However, high-speed connectivity alone does not create a digitally integrated energy operation.

According to Al Khorami, companies need to combine connectivity, computing, AI and cybersecurity rather than treating each technology as a separate project.

“A digitized field needs pervasive connectivity, private 5G across remote sites, edge computing that processes data where it is generated, AI trained on operational data, and cybersecurity built for critical national infrastructure,” he said.

That requirement becomes particularly important in remote oil and gas fields, where facilities can be located hundreds of kilometers from major data centers.

“Fields sit hundreds of kilometers from the nearest data center. Operational technology and IT have to converge without compromising safety. A dashboard in Dhahran is worthless if the wellhead 300 kilometers away has no reliable connection.”

The shift, therefore, is moving away from simply providing connectivity toward managing complete technology environments capable of supporting energy operations from the field to the data center.

Cybersecurity Becomes Central

As energy infrastructure becomes more connected, cybersecurity becomes an increasingly important part of the digital transformation.

Every additional sensor, connected device and remote system can create another potential entry point that needs to be protected. For Saudi Arabia, where energy infrastructure is strategically important to the national economy, the consequences of a major cyber incident could extend well beyond an individual facility.

“A connected oilfield is national infrastructure, and every sensor added to it widens the surface that must be defended. Digitization and cyber resilience have to advance together,” Al Khorami said.

This means cybersecurity cannot simply be added after a digital system has been deployed. It needs to be incorporated into the design and operation of connected energy infrastructure from the beginning.

Developing Local Digital Expertise

Technology alone, however, will not determine whether Saudi Arabia achieves its digital energy ambitions.

The Kingdom will also need skilled professionals capable of operating increasingly sophisticated networks, AI systems and cybersecurity infrastructure.

For energy companies, maintaining large internal technology teams covering every aspect of digital infrastructure may not always be practical. Partnerships that combine technology delivery with local engineering and operational expertise could therefore become increasingly important.

Al Khorami says this approach can allow energy operators to remain focused on production while ensuring that digital infrastructure is properly managed.

“They put Saudi engineering and operations talent behind the systems so the operator can concentrate on production. That keeps capability and skills inside the kingdom. Local capability is what keeps a project running long after the launch event is over.”

The Next Phase of Saudi Energy

Saudi Arabia has already demonstrated the scale of its energy and digital ambitions. The next phase will depend on how effectively those ambitions can be converted into reliable, integrated systems operating across the Kingdom.

For the energy sector, that means connecting remote facilities, integrating operational and IT environments, applying AI to real-world industrial data and strengthening cybersecurity at the same time.

The technologies themselves are increasingly proven. The bigger test is whether companies can deploy them consistently, securely and at scale.

As Saudi Arabia works toward its 2030 renewable-energy targets, the ability to execute its digital strategy could become just as important as the infrastructure being built above ground.