How the U.S. Can Counter China's Digital Silk Road in Saudi Arabia

Washington, September 16, 2025 – Today, the Center for a New American Security (CNAS) released a new report, Countering the Digital Silk Road: Saudi Arabia by Vivek Chilukuri and Ruby Scanlon.

The Digital Silk Road (DSR) is China’s initiative to shape critical digital infrastructure around the world. As the DSR marks its 10th anniversary, the CNAS Technology and National Security Program has undertaken a major research project to assess its impact and explore how the United States and its allies can offer a more compelling and coherent alternative. The project includes four case studies of strategically critical nations—Indonesia, Brazil, Kenya, and Saudi Arabia—and will culminate in an in-depth final report in October.

The series’ fourth and final case study covers the Kingdom of Saudi Arabia. Through Vision 2030, Saudi Arabia seeks to transition from its longtime petro-economy into a global tech powerhouse. Up to 70 percent of Vision 2030’s goals relate to data and artificial intelligence (AI), but the kingdom will need foreign partners to realize them. Recognizing the opportunity, both the United States and China now compete fiercely to become the kingdom’s preferred partner as it undergoes this historic, technology-driven transformation.

The new case study traces the history of U.S.-Saudi and Sino-Saudi technology partnerships and details the rapidly expanding U.S.-China competition within the kingdom with a focus on data centers, semiconductors, and AI. The report also provides an in-depth look at new Saudi state-backed investment arms, initiatives, and policies driving the country’s technology transformation.

The report concludes that, although Riyadh will resist demands for outright alignment with the U.S. technology ecosystem given its maturing relationship with Beijing, considerable opportunity remains for U.S. officials and industry to outcompete China’s DSR in the heart of Arabia while protecting sensitive U.S. technologies. The report recommends that policymakers:

• Conclude a secure, phased, and verifiable deal with Saudi Arabia for advanced AI chips.
• Support the expansion of Saudi fabrication capacity for legacy chips while limiting support for leading-edge semiconductor design tools and research.
• Establish a process to fast-track inbound investments from allied and partner sources for U.S. strategic technologies.
• Leverage people-to-people ties to support Riyadh’s Saudization policies.
• Engage the Saudi Communications, Space, and Technology Commission about the draft Global AI Hub Law.
• Pilot a joint effort by the U.S. Department of Homeland Security, the Department of State, and the Department of Energy to bolster AI data center security in strategic overseas markets, like Saudi Arabia.
• Support eventual Saudi transition to 6G through research partnerships.

The full report can be read here. CNAS will release an in-depth final report on countering the Digital Silk Road in October.

For more information or to arrange an interview with the report’s authors, please contact Charles Horn at [email protected].