Saudi Arabia Data Center Market: Industry Size, Trends, Investment Analysis & Outlook 2025-2033

Saudi Arabia Data Center Market Overview

Market Size in 2024: USD 2.1 Billion

Market Forecast 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's data center market is surging thanks to Vision 2030 and the fresh National Data Center Strategy launched in June 2025 by the Ministry of Communications and Information Technology alongside SDAIA. These pushes aim to ramp up capacity to 1.5 gigawatts, drawing over $18 billion in investments to make the Kingdom a Middle East powerhouse for cloud and AI services. Government mandates like the "Cloud First" policy from 2019 are speeding up digital shifts in healthcare, finance, and smart cities, with current IT power hitting 222 megawatts and Riyadh leading as the top hub for new builds. Mega projects in NEOM and expansions by local champs like center3 and Mobily are pulling in global players, fueling a boom that's diversifying the economy beyond oil.​

AI investments are supercharging growth, with state-backed Humain teaming up with xAI for a massive 500-megawatt facility powered by Nvidia chips, announced just weeks ago. This fits into broader plans for 1.9 gigawatts by 2030 to handle seven percent of global AI training workloads, backed by partnerships with AMD, AWS, and Cisco. Equinix is dropping $1 billion on a 100-megawatt site, while Alfanar commits $1.4 billion across four centers in Riyadh and Dammam for AI-driven cloud needs. These moves aren't just talk— they're creating real-world apps like LEAP Riyadh events showcasing scalable infrastructure for enterprises and startups.​

A big trend now is sustainable cooling and green energy, tackling the desert heat head-on with liquid cooling, free cooling, and solar-powered systems slashing energy use. Operators are weaving in renewables to hit low PUE scores, like Oxagon's 1-gigawatt AI center blending efficiency with eco goals under Vision 2030. Colocation is exploding too, with 34 facilities live and Riyadh adding space via Mobily and DAMAC Digital, valued at $674.8 million to support hyperscalers without massive upfront costs. This smart pivot keeps operations lean and planet-friendly amid skyrocketing data demands.​

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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