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. 

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-data-center-market/requestsample

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 experiencing unprecedented growth driven by the kingdom's comprehensive digital transformation agenda under Vision 2030. The National Transformation Program emphasizes building a robust digital infrastructure to support the transition to a knowledge-based economy, creating massive demand for enterprise-grade data center facilities. Government initiatives including the establishment of the Saudi Data and AI Authority (SDAIA) and substantial investments in smart city projects like NEOM are generating significant requirements for scalable, secure data processing and storage capabilities across multiple sectors.

The rapid expansion of 5G networks and Internet of Things (IoT) deployments is fundamentally reshaping data center requirements in Saudi Arabia. Telecommunications operators are investing heavily in edge computing infrastructure to support ultra-low latency applications, autonomous vehicles, and smart city services. The proliferation of connected devices, sensors, and real-time data analytics requirements is driving demand for distributed data center architectures that can process and analyze data closer to end users, reducing latency and improving service quality.

Cloud adoption acceleration and hyperscale provider expansion are key market drivers transforming the Saudi Arabia data center trends. Major global cloud service providers are establishing regional presence to serve growing enterprise demand for cloud services, data sovereignty requirements, and regulatory compliance needs. The government's cloud-first policy for public sector digital services, combined with private sector digital transformation initiatives, is creating substantial demand for colocation services, managed hosting, and hybrid cloud infrastructure solutions that support both on-premises and cloud-based workloads.

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.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:  

IMARC Group 

134 N 4th St. Brooklyn, NY 11249, USA 

Email: sales@imarcgroup.com 

Tel No:(D) +91 120 433 0800 

United States: +1-201971-6302