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, the market is expected to reach USD 7.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.6% during 2025-2033.
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How AI and Digital Transformation is Reshaping the Future of Saudi Arabia Data Center Market
- Cloud-first strategies and hybrid infrastructure deployments accelerate enterprise digital transformation, reducing IT infrastructure costs by 30-40% while supporting Vision 2030's digital economy initiatives and National Transformation Program goals.
- 5G network rollout and IoT proliferation drive massive data generation and processing requirements, increasing data center capacity demand by 50-60% while enabling smart city infrastructure across NEOM, Riyadh, and other major urban developments.
- AI and machine learning workloads require specialized high-performance computing infrastructure, boosting demand for GPU-enabled servers and edge computing facilities by 45-55% to support autonomous systems and intelligent city services.
- Government digitization initiatives and e-government services expansion create substantial demand for secure, compliant data center infrastructure, increasing public sector IT spending by 35-45% while enhancing citizen digital services delivery.
- Hyperscale cloud providers' regional expansion strategies drive construction of large-scale data center facilities, attracting foreign investment worth billions of dollars while positioning Saudi Arabia as a regional digital hub for Middle East and North Africa markets.
Saudi Arabia Data Center Market Trends & Drivers:
Saudi Arabia data center market growth is largely fueled by the government's aggressive digital transformation efforts under Vision 2030. The National Data Center Strategy, backed by the Ministry of Communications and Information Technology and the Saudi Data and AI Authority, aims to build up to 1.5 gigawatts of data center capacity. This drive includes partnerships with global hyperscalers like AWS, Microsoft, and Google, who are establishing cloud regions and sovereign cloud zones compliant with local data regulations. These initiatives are enabling the Kingdom to become a regional hub for AI, cloud computing, and large-scale digital services.
Investment and infrastructure development stand out as a key trend. Major players such as Public Investment Fund-backed Humain and DataVolt are investing billions in AI-powered and energy-efficient data center campuses, including a 1.5 gigawatt net-zero AI data center in NEOM’s Oxagon industrial zone. Cutting-edge cooling technologies and renewable energy integration improve sustainability and attract tech companies seeking green certifications. This infrastructure boost is complemented by advancements in fiber-optic and submarine cable networks, significantly enhancing connectivity and performance across Saudi Arabia’s leading cities and smart city projects.
The third factor driving growth is the regulatory environment encouraging advanced, carrier-neutral data centers with strong energy management and transparency mandates. The Communications, Space, and Technology Commission's Data Centre Services Regulations help ensure quality, security, and sustainability standards, making the market attractive for global investments. Additionally, incentives like the Cloud Computing Special Economic Zone (CCSEZ) provide tax benefits and a flexible operating framework, spurring competition and innovation. These measures support a robust ecosystem for local colocation providers, hyperscalers, and managed service firms in Riyadh, Jeddah, and emerging hubs like Dammam.
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
Recent News and Developments in Saudi Arabia Data Center Market
- August 2025: Major hyperscale cloud providers announce multi-billion dollar investments in new data center facilities across Riyadh and Jeddah to support regional expansion strategies.
- July 2025: Launch of edge computing infrastructure deployment program to support 5G network expansion and smart city applications across major urban centers.
- June 2025: Government establishes new data center security and compliance standards aligned with international best practices to attract foreign investment and ensure data sovereignty.
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