Saudi Arabia Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

MARKET INSIGHTS

The Saudi Arabia data center market size will witness investments of USD 3.90 billion by 2030, growing at a CAGR of 19.65% during the forecast period. Saudi Arabia has become one of the Middle East's fastest-growing data center markets, driven by the region's digital revolution. In 2024, Saudi Arabia contributed to over 22.3% of the total power capacity added by data center operators throughout the Middle East due to its growing impact and investments in digital infrastructure.

The Saudi Vision 2030 is a significant driving force behind the increasing demand for data centers, as the country is going through a comprehensive digital transformation. This initiative aims to diversify the economy, reduce reliance on oil, and foster innovation across various sectors. Furthermore, Saudi Arabia has implemented a policy known as "Cloud First," which is expected to significantly advance the adoption of cloud computing across the country. Introduced in 2020, this policy emphasizes that for all new IT investments, civilian government entities are required to prioritize cloud solutions instead of relying on conventional internal or on-premise systems.

The LEAP Riyadh 2025 event is likely to be a game changer and investment booster for the Saudi Arabia data center market. Several investments worth billions were announced during the event in the fields of AI, cloud, technology, and data centers. Moreover, during the event, Equinix, a major colocation operator, announced its entry into the Saudi Arabia data center market with plans to invest around USD 1 billion towards the development of data center facilities across the country in the next 2-3 years.

KEY HIGHLIGHTS

1. Saudi Arabia's strategic location, competitive electricity tariffs, and robust connectivity infrastructure enhance its appeal as a data center hub. The country's focus on becoming a leader in artificial intelligence (AI) and cloud services also contributes to the growing demand for data center infrastructure.
2. LEAP Riyadh 2025 is anticipated to significantly transform the technological landscape and Saudi Arabia data center market through substantial investments and innovative initiatives. This event will act as a platform for the shift in market dynamics, fostering growth and advancements in the upcoming years. As a result, we can expect the establishment of cutting-edge technologies, increased collaboration among industry players, and an overall enhancement of the digital infrastructure in the region.
3. NEOM is one of the smart and futuristic cities being developed by the Saudi Arabian government. NEOM is an ambitious smart city project in northwestern Saudi Arabia, launched in 2017 as part of the country's Vision 2030 initiative. The city is being developed as a hub for innovation and sustainability to integrate cutting-edge technologies across various sectors.
4. The combination of submarine cables and advanced inland connectivity has positioned Saudi Arabia as a strategic digital gateway, driving the rapid growth of the Saudi Arabia data center market. This infrastructure not only supports the country’s digital transformation but also attracts global tech investments, solidifying Saudi Arabia’s role in the global digital economy.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Saudi Arabia colocation market revenue.
2. An assessment of the data center investment in Saudi Arabia by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Saudi Arabia data center market landscape, an in-depth market analysis, and insightful predictions about the Saudi Arabia data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Saudi Arabia
6. Facilities Covered (Existing): 33
7. Facilities Identified (Upcoming): 41
8. Coverage: 9+ Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Saudi Arabia
12. Colocation Market Revenue & Forecast (2021-2030)
13. Wholesale vs. Retail Colocation Revenue (2021-2030)
14. Retail Colocation Pricing
15. Wholesale Colocation Pricing
16. The Saudi Arabia data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
17. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
18. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
19. A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

1. The Saudi Arabia data center market has the presence of several major data center operators, such as center3, Gulf Data Hub, Mobily, Edgnex Data Centres by DAMAC, Quantum Switch Tamasuk (QST), and others, establishing their facilities with further plans to invest. The Saudi Arabia data center market also witnessed announcements and investments from several new operators, which include Agility, Pure Data Centres, DataVolt, Sayeeb Datacenters, and others.
2. Gulf Data Hub currently holds the key spot, in terms of core and shell power capacity in the Saudi Arabia data center market. However, the company has over 320 MW of power capacity data centers under development and planned stages. Once these are operational, it will have a significant impact on the market share.
3. Several data center operators are planning significant investments across the Saudi Arabia data center market. For example, Edgnex Data Centres by DAMAC, currently has an operational data center power capacity of 15 MW in Riyadh and Dammam, with plans to increase this to 55 MW by 2025. Additionally, Sahayeb Datacenters, in partnership with Al Moammar Information Systems, aims to develop data centers across Riyadh and Dammam with an initial combined capacity of 24 MW, which can be expanded to 120 MW of IT capacity.
4. The Saudi Arabia data center market is also seeing investments from global cloud giants such as Google, Amazon Web Services, Microsoft, Oracle, Alibaba, and Huawei who are developing their dedicated cloud regions and data centers throughout the country.
5. In December 2024, Microsoft announced the completion of the construction of the data center region in Saudi Arabia. The company further announced that its cloud region with three availability zones will be launched in 2026.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Riyadh
3. Jeddah
4. Dammam
5. Other Cities
6. List of Upcoming Facilities in the Region (Area and Power Capacity)
7. Riyadh
8. Jeddah
9. Dammam
10. Other Cities

REPORT COVERAGE:

This report analyses the Saudi Arabia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Racks
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chillers Units
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & Commissioning Services
23. Engineering & Building Design
24. Fire Detection & Suppression
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV 
31. Geography
32. Dammam
33. Other Cities

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Arista Networks, Atos, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo, and NetApp.
2. Data Center Construction Contractors & Sub-Contractors: ALEC Engineering & Contracting, Alfanar Projects, Al Latifia Trading & Contracting, Ashi & Bushnag, AtkinsRealis, Aurecon, Azura Consultancy, Capitoline, Critical Facilities Consulting and Services, DAR Group, Edarat Group, EGEC, HATCO, ICS Arabia, ICS NETT, INT’LTEC Group, JAMED, Linesight, Manens, RED Engineering Design, SANA Control Systems, and UBIK. 
3. Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Canovate, Caterpillar, Cummins, Eaton, Enrogen, Grundfos, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, Siemens, STULZ and Vertiv.
4. Data Center Investors: center3, Edgnex Data Centres by DAMAC, Google, Gulf Data Hub, Mobily, Oracle, Quantum Switch Tamasuk (QST) and TONOMUS.
5. New Entrants: Agility, Amazon Web Services, DataVolt, Desert Dragon Data Centers, Pure Data Centres, Microsoft, Sahayeb Datacenters.