Super Micro Computer signs $20bn deal with Saudi's DataVolt

(Sharecast News) - Shares in server and storage systems group Super Micro Computer surged on Wednesday after the Wall Street firm inked a $20bn deal to supply Saudi Arabian data centre giant DataVolt with components for its AI campuses. The companies announced that SMC would deliver "ultra-dense GPU platforms and rack systems" for DataVolt's hyperscale AI campuses in Saudi Arabia and the US.

The agreement comes amid a flurry of activity announced as president Donald Trump visits the Middle East, with $300bn in investment deals already signed with Saudi Arabia, including deals for Cisco, Nvidia and AMD.

The Department of Commerce this week announced it was scrapping the so-called 'AI Diffusion Rule', which imposed restrictions on AI chip exports to certain countries.

DataVolt chief executive Rajit Nanda, said the company's partnership with SMC guarantees a US-made supply chain for critical graphic processing unit systems, and marks a "major milestone" and commitment to AI and data centres in the country,

Meanwhile, SMC's chief executive Charles Liang said: "We are excited to partner with DataVolt and continue expanding our manufacturing efforts in the United States. By working together, we will bring cutting-edge AI and compute infrastructure, enabling the Kingdom's vision of becoming a global hub for technology and innovation."

SMC shares were trading 16% higher at $45.25 by 1104 ET.