Saudi Arabia Data Center Market Overview
Market Size in 2024: USD 2.1 Billion
Market Size in 2033: USD 7.7 Billion
Market Growth Rate 2025-2033: 15.6%
According to IMARC Group's latest research publication, "Saudi Arabia Data Center Market Report by Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Absorption (Non-Utilized, Utilized), and Region 2025-2033", the Saudi Arabia data center market size reached USD 2.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 7.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.6% during 2025-2033.
Growth Factors in the Saudi Arabia Data Center Market
- Government Initiatives and Vision 2030
The Saudi Vision 2030 (SV2030), which aims to transform the economy with an overhaul plan through economic diversification, has served as a catalyst for the data center market size 2025. The government's campaign to modernize industries as well as digitize and transform public sector services has inspired substantial investment in digital infrastructure. For example, the Saudi Data and Artificial Intelligence Authority (SDAIA) is spearheading programs and initiatives to develop the underlying data center development framework, to provide a facelift to boost the country’s overall context in terms of digital infrastructure development and further alignment with national objectives to reduce the economy's reliance on oil; and initiated huge investments and uplift in digital infrastructure, which has drawn foreign investment and partnerships with many of the largest technology companies in the world, including Google and Microsoft, which have both unveiled new cloud regions in the Kingdom. Furthermore, large cloud providers have created demand for large data centers to support every digital service and every smart city project, highlighted by the Saudi government's creation of NEOM.
- Surge in Cloud and AI Adoption
The proliferation of cloud computing and AI technologies is contributing to the saudi arabia data center market growth 2025. Organizations in every industry sector, including finance, e-commerce (retail), and telco, are changing the type of technology they use to leverage new cloud-based solutions that allow them to scale agility and speed without the capex overhead. For example, AWS has engaged with local partners in expanding their cloud capabilities ecosystem in Saudi Arabia to support enterprise customers requiring more advanced data processing capabilities. New AI-driven applications in health and transportation and many others will also require high-performance data processing, placing increasingly complex workloads that require data centers at a minimum to consider hyperscale facilities in their investment plans.
- Strategic Geographic and Connectivity Advantages
Due to its strategic location as the digital gateway between Europe, Asia, and Africa, Saudi Arabia has the potential to become a data center hub. Undersea cable deployments, including 2Africa which connects the Kingdom to three continents, provide strong connectivity ensuring low-latency data transfer and making it ideal for global enterprises. For example, center3, a global data center operator, provides data storage and processing capabilities to international clients due to the connectivity offered, thereby positioning the Kingdom as a regional center for data storage and processing. Investment is actively growing in facilities located in Riyadh, Jeddah, and Dammam.
Key Trends in the Saudi Arabia Data Center Market
- Rise of Energy-Efficient Technologies
The emergence of energy-efficient technologies is very evident in Saudi Arabia’s data center market with the region's extreme temperatures and sustainability aspects driving its popularity. For example, STC (Saudi Telecom Company) includes some sort of green initiatives in its data center designs to align with the Saudi Green Initiative. New, more energy-efficient cooling technologies are following suit, implementing new liquid cooling and advanced air-cooling technologies that focus on reducing energy consumption. These energy efficient measures also drop operational costs and meet parts of important environmental initiatives critical to Vision 2030, making energy-efficient data centers an appealing aspect for operators when appealing to this type of eco-sensitive customer.
- Growth of Colocation Services
Colocation services are becoming popular as organizations explore flexible, cost-effective data storage and management options. While many organizations built in-house data centers, colocation facilities provide organizations a solution to leasing space and sharing infrastructure that reduces capital expenditure. Operators like Gulf Data Hub and Mobily are expanding their colocation services for companies such as banking and telecom. Mobily's Malga 1 facility in Riyadh provides customized colocation services for their customers to engage a quality infrastructure without the hassle of building their data centres, thus expanding the market.
- Increased Focus on Cybersecurity
Considering the increasingly complex cyber threat landscape, the data centers in Saudi Arabia are focused on implementing sophisticated cybersecurity strategies. The Gulf region is subject to strict data privacy regulations, and the BFSI (banking, financial services, and insurance) industries have even more sensitive data security concerns. Examples of this commitment to improved security include a new Dammam Data Center (center3), which is a Tier III data center that incorporates firewalls and encryption. In all cases, this commitment to security is significant, as businesses depend on data centers for secure cloud services and IoT deployment, while also ensuring their applications are compliant with local regulations and trusting their data centers to follow best practices.
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Saudi Arabia Data Center Industry Segmentation:
The report has segmented the market into the following categories:
Breakup by Data Center Size:
- Large
- Massive
- Medium
- Mega
- Small
Breakup by Tier Type:
- Tier 1 and 2
- Tier 3
- Tier 4
Breakup by Absorption:
- Non-Utilized
- Utilized
Breakup by Region:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
- Detecon Al Saudia DETASAD Co. Ltd.
- Electronia
- Gulf Data Hub
- Mobily
- NashirNet
- NourNet
- Sahara Net
- Shabakah Integrated Technology
- Systems of Strategic Business Solutions
This report highlights Saudi Arabia data center market key players 2024 including all above mentioned leading companies, contributing to the country's digital transformation through major infrastructure investments and strategic partnerships.
Future Outlook
The data center market in Saudi Arabia is on the verge of a major growth trajectory bolstered by continuous digital transformation and capital investment. Activities like LEAP Riyadh 2025 that encourage technology innovation and other initiatives make the Kingdom of Saudi Arabia well-positioned to evolve into a global digital hub. Future-oriented projects like NEOM, which will be the world's first smart city, will create even more demand for sophisticated data centers in order to cover advanced AI, IoT, and cloud services deployment. New corporate entrants like DataVolt and Pure Data Centres are joining existing providers like Gulf Data Hub in expanding data center facilities to accommodate new demand. Critical challenges such as developing a skilled workforce and ensuring sustainable energy use must be solved in order to sustain this momentum, thereby establishing Saudi Arabia as a leader in the global digital economy.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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