Saudi Arabia Data Center Colocation Market - Supply & Demand Analysis 2025-2030

SAUDI ARABIA DATA CENTER COLOCATION DEMAND AND SUPPLY HIGHLIGHTS

The Saudi Arabia data center colocation market size was valued at USD 315 million in 2024 and is expected to reach USD 1.80 billion by 2030, growing at a CAGR of 33.71% during the forecast period. The country is one of the major colocation data center hubs in the Middle East, which consists of 34 operational colocation data center facilities as of December 2024. In terms of data center development, Riyadh has emerged as a major location in recent years and witnessed the addition of data center space from operators such as Mobily, center3, DAMAC Digital, among others.

Saudi Arabia is aligning AI growth with green energy targets through sustainable hyperscale builds. For instance, in November 2024, Oxagon (NEOM) announced plans for a 1GW AI-powered data center, integrating renewable energy and advanced cooling technologies to support sustainable industrial AI operations. This project highlights Saudi Arabia’s commitment to environmentally responsible digital infrastructure.

Saudi Arabia’s cloud computing market is expanding rapidly, driven by government initiatives, foreign partnerships, and private sector interest. For instance, in February 2025, Tencent Cloud announced its first Middle East cloud region in Saudi Arabia at LEAP 2025, featuring two availability zones and set to become operational in 2025. The company will invest over USD 150 million to support digital transformation in sectors such as gaming, media, finance, and tourism. Furthermore, in 2024, the cloud & IT sector emerged as the dominant driver of Saudi Arabia data center colocation market, capturing 50% of the market share. This leadership stems from the rapid adoption of cloud-native applications, hybrid cloud platforms, and SaaS models.

center3 led Saudi Arabia’s IT power capacity with a 49.4% market share in 2024, reflecting its strong investment in large-scale, energy-efficient facilities, positioning it to meet hyperscale and cloud demand growth. Furthermore, according to our findings, the revenue per MW will vary based on the type of colocation – retail, wholesale, or hybrid. The average revenue generated by the colocation operators in Saudi Arabia is likely to be around $2–$3 million per MW.

WHAT'S INCLUDED?

1. Transparent research methodology and insights on the industry's colocation of demand and supply.
2. The market size is available in terms of utilized white floor area, IT power capacity, and racks.
3. The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy %.
4. The study of the existing Saudi Arabia data center market landscape and insightful predictions about industry size during the forecast period.
5. An analysis of the current and future colocation demand in Saudi Arabia by several industries.
6. The impact of AI on the data center industry in the market.
7. Study on the sustainability status in the country
8. Analysis of current and future cloud operations in the country.
9. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the country.
10. Snapshot of existing and upcoming third-party data center facilities in Saudi Arabia
11. Facilities Covered (Existing): 34
12. Facilities Identified (Upcoming): 30
13. Coverage: 10 Cities
14. Existing vs. Upcoming (White Floor Area)
15. Existing vs. Upcoming (IT Load Capacity)
16. Data Center Colocation Market in Saudi Arabia
17. Colocation Market Revenue & Forecast (2024-2030)
18. Retail Colocation Revenue (2024-2030)
19. Wholesale Colocation Revenue (2024-2030)
20. Retail Colocation Pricing along with Addons
21. Wholesale Colocation Pricing along with the pricing trends
22. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the Saudi Arabia data center colocation market.
23. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
24. The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.