Saudi Arabia Data Center Market Overview
Market Size in 2025: USD 2.43 Billion
Market Forecast in 2034: USD 8.49 Billion
Market Growth Rate 2026-2034: 14.93%
According to IMARC Group's latest research publication, "Saudi Arabia Data Center Market Size, Share, Trends and Forecast by Data Center Size, Tier Type, Absorption, and Region, 2026-2034" The Saudi Arabia data center market size was valued at USD 2.43 Billion in 2025 and is projected to reach USD 8.49 Billion by 2034, growing at a compound annual growth rate of 14.93% from 2026-2034.
How AI and Digital Transformation is Reshaping the Future of Saudi Arabia Data Center Market
AI amps up Saudi data centers through Vision 2030's 15 billion SAR IT fund, fueling colocation growth and smart infrastructure for better efficiency.
Humain's $1.2 billion financing deal expands AI-driven data centers to 250 MW, partnering with STC for cutting-edge operations nationwide.
DataVolt's $5 billion sustainable AI center in NEOM uses green tech, aligning with Vision 2030 to attract global firms and boost capacity.
PIF's $40 billion AI fund powers hyperscale data centers, drawing NVIDIA and Qualcomm for advanced computing and innovation sovereignty.
SDAIA's frameworks optimize data center ops with AI, where 75% of entities reach proficient readiness for secure, efficient digital ecosystems.
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Saudi Arabia Data Center Market Trends & Drivers:
Saudi Arabia's data center market is exploding thanks to Vision 2030's massive digital push, funneling billions into cloud infrastructure and turning the Kingdom into a regional tech powerhouse. Right now, the sector boasts over 222 MW of IT power capacity, with plans for another 760 MW in new builds across Riyadh and Dammam to handle surging data from 5G networks and smart cities. Hyperscalers like AWS, Google, and Oracle are pouring in investments, with Oracle already live in center3's Riyadh facility supporting AI workloads for banks and telcos. Real-world wins include NEOM's edge setups crunching IoT data for real-time energy management, while data localization rules keep sovereign info onshore. Government land grants and fast-track permits make it a no-brainer for operators, creating thousands of high-tech jobs and drawing global talent.
AI and cloud adoption are supercharging growth, as enterprises ditch old servers for hyperscale power amid exploding data volumes from e-commerce and streaming. Large data centers grab 32 percent of the market, powering AI training that needs dense racks and liquid cooling to stay efficient in desert heat. Microsoft and Google regions in Jeddah handle petabytes for regional clients, cutting latency for apps like telemedicine in remote areas. Stats show colocation revenues hitting $315 million currently, fueled by telecoms like Mobily expanding fiber backbones. The National Digital Transformation Program mandates cloud-first strategies, spurring banks to migrate workloads securely. In practice, retailers use these hubs for personalized shopping AI, boosting sales while Gulf Data Hub's 320 MW pipeline ensures capacity keeps pace with demand.
Sustainability drives the next wave, with operators chasing green energy to match Vision 2030's net-zero goals amid power-hungry AI trends. Facilities incorporate solar backups and free-air cooling, slashing energy use in a market valued over $2 billion. Oxagon's 1 GW AI data center project blends renewables with hyperscale tech for industrial digital twins. center3's expansions feature low-water systems perfect for arid zones, while incentives like tax breaks reward PUE under 1.4. Real applications shine in oil firms running simulations on eco-friendly racks, cutting emissions. With 34 live sites and counting, this focus attracts content giants and CDNs, positioning Saudi as a low-carbon digital gateway for MENA and beyond.
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
February 2026: Saudi Arabia broke ground on the massive Hexagon data center in Riyadh, a 480MW Tier IV facility touted as the world's largest government-owned site, spanning over 30 million square feet to bolster national data sovereignty and power AI-driven government operations under Vision 2030.
January 2026: NEOM announced its pivot to become a premier data center hub with cutting-edge water-cooled infrastructure powered by renewables, leveraging vast land reserves to attract hyperscalers and support AI for industrial IoT in line with the Kingdom's smart city ambitions.
December 2025: center3 completed a 9.6MW expansion at its Riyadh Khurais facility featuring liquid cooling for high-density AI racks, partnering with Oracle to host its public cloud region and enabling low-latency services for regional banks and telcos.
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