MARKET INSIGHTS

The Saudi Arabia data center market is estimated to cross USD 1.77 billion by 2027, growing with a CAGR of 10.16% from 2022-2027. Saudi Arabia data center market ranks second in the Middle East region. Some operators operating in the country include Saudi Telecom Company (STC), Mobily, NourNet, GO Telecom (Etihad Atheeb Telecom Company), and Gulf Data Hub, among others. Developing Special Economic Zones (SEZs), Free Trade Zones (FTZs), and smart city investments will boost the Saudi Arabia data center market.

The high internet and social media penetration across the country, driven by COVID-19, deployment of 5G services, and improved inland connectivity, among other factors, makes the Saudi Arabia data center market an attractive industry for investors. Introducing the Personal Data Protection Law in the country will protect the confidentiality of the citizen's personal data, further boosting the data center market. The National Renewable Energy Program (NREP) under Vision 2030 and the King Salman Renewable Energy Initiative have been initiated to maximize renewable energy. Saudi Arabia expects to generate over 50% of its renewable energy by 2030.

KEY HIGHLIGHTS

• Saudi Arabia has over 20 operational colocation data centers. Most colocation centers are being developed according to Tier III standards. For instance, Saudi Telecom Company (STC) opened two Tier III facilities in Jeddah and Al-Madina.
• The COVID-19 impact, leading to remote working, has increased local data generation. In addition, migration from on-premises to colocation, cloud, and managed services will boost the Saudi Arabia data center market.
• Saudi Telecom Company (STC) is among the top and largest data center operators in the country that has planned to develop data centers across the country with around 125 MW of power capacity.
• The country is also witnessing improvement in submarine and inland connectivity. For instance, 2Africa subsea cables will connect Saudi Arabia with other countries such as India, the UAE, Spain, the UK, Oman, and other countries.
• Significant deployment and adoption of 5G services and the development of smart cities in the region will fuel data traffic and further grow the demand for more data centers in the country.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and the Saudi Arabia colocation market revenue.
• An assessment of the investment in Saudi Arabia by colocation and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across locations in the country.
• During the forecast period, a detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the Saudi Arabia data center market size.
• Snapshot of existing and upcoming third-party data center facilities in Saudi Arabia
  • Facilities Covered (Existing): 21
  • Facilities Identified (Upcoming): 22
  • Coverage: 7 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Saudi Arabia
  • Market Revenue & Forecast (2021-2027)
  • Wholesale vs. Retail Revenue & Forecast (2021-2027)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Saudi Arabia market landscape investments are classified into IT, power, cooling, rack cabinets and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• Saudi Telecom Company (STC), Gulf Data Hub, and others are some key colocation operators in the Saudi Arabia data center market.
• The hyperscale operator Google has announced its plan to develop a cloud region in Saudi Arabia in partnership with Aramco, with three availability zones, likely to be online in the next 2-3 years.
• EDGNEX has announced the commencement of construction work on its Riyadh data center facility, which will have a power capacity of around 20 MW.
• The country is also witnessing an increase in the adoption of cloud services. Oracle, Huawei Technologies, and IBM have a strong presence in the country. Oracle is currently developing its new cloud region in Neom, which will likely be operational in 2022.
• Enrogen, the UK-based diesel generator company, has signed a deal with a cloud company that is currently developing its cloud region, tentatively Google, to supply 30 MW diesel generators.
• Telecom operators such as Saudi Telecom Company (STC), Mobily, and Zain are the major telecom operators who have either deployed 5G technology in some cities on a trial basis or are in the process of launching commercial 5G services across the country.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Riyadh
  • Other Cities (Al Ahsa, Al Qassim, Neom, Dammam, Al Khobar, and Al Madinah)
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Saudi Arabia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Riyadh
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, and NetApp
• Data Center Construction Contractors & Sub-Contractors: Ashi & Bushnag, Al-Latifia Trading and Contracting, Atkins, Capitoline, DC PRO BV, Edarat Group, EGEC, Gensler, HATCO, ICS Arabia, ICS Nett, IDP Engineering, Environment and Architecture, INT’LTEC Group, JAMED, Linesight, RED and SANA
• Support Infrastructure Providers: ABB, Alfa Laval, Canovate, Caterpillar, Cummins, Eaton, Enrogen, Grundfos, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv
• Data Center Investors:  Google, Gulf Data Hub, and Saudi Telecom Company (STC)
• New Entrants:  EDGNEX, Google, Quantum Switch and Zeropoint DC (NEOM)