Rackspace Technology (NASDAQ:RXT) has established a regional headquarters in Riyadh as the cloud-services company moves to accelerate its cloud and artificial intelligence growth in the Middle East.
The new regional headquarters in the Saudi capital is intended to support Rackspace's expansion in cloud and AI services, the company said.
The move plants a formal base in a market where governments and enterprises are investing heavily in digital infrastructure.
Opening a regional headquarters in Riyadh positions Rackspace to pursue cloud and AI demand tied to Saudi Arabia's push to diversify its economy and build out data and computing capacity. A local base can help the company win public-sector and enterprise work that favors providers with an in-country presence and data residency.
The expansion broadens Rackspace's geographic footprint beyond its established markets, though the contribution to revenue will depend on how quickly it builds business in the region.
Rackspace Technology is a multicloud services company that helps organizations design, build and operate cloud environments across public and private platforms, including managed cloud and artificial intelligence services.