RIYADH: The Kingdom’s largest telecom operator Saudi Telecom Co., known as stc, said it intends to establish a unit specialized in data center hosting as well as regional and international connectivity. Fully financed by stc"s resources, the new company will be launched with an initial capital of SR100 million ($26.7 million), it said in a statement. The move aligns with wider goals to strengthen Saudi Arabia’s position as the region’s future digital hub, attract foreign direct investments, and localize contents and services needed to boost digitization. Current assets owned by stc such as data centers, international submarine cables, and point of presence assets – worth SR2.1 billion – to be transferred to the new company. The new company seeks to invest SR1.7 billion, bringing the total investment to SR3.8 billion ($1.01 billion). Riyadh-based stc said that the new initiative is expected to have a positive impact on its operations, which cannot be quantified until all regulatory requirements are fulfilled.