The Saudi Arabia Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Cooling Systems, By General Construction, & By Tier Standard.

Saudi Arabia Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

SAUDI ARABIA DATA CENTER MARKET SIZE & OUTLOOK

The Saudi Arabia data center market size was valued at USD 2.08 billion in 2025 and is expected to reach USD 6.17 billion by 2031, growing at a CAGR of 19.84% during the forecast period. Saudi Arabia is one of the well-established and developed data center markets in the Middle East region that is experiencing rapid data center development year-on-year, driven by various growth factors, such as, increasing adoption of Artificial Intelligence (AI), rapid surge in digitalization, advancements in smart city projects, adoption of sustainability initiatives, surge in submarine cables and inland connectivity, increasing adoption of cloud computing services, and other factors. The cumulative data center power capacity of the Saudi Arabia data center market is expected to reach to approximately 1,429 MW from 2026 to 2031, owing to the rapid surge in demand for data center infrastructure and the development of large-scale data center campuses across the country.

Dammam is one of the most attractive destinations for the development of data centers in Saudi Arabia because of its strong fiber connectivity, reliable power infrastructure, and proximity to major industrial hubs. However, owing to the rapid surge in demand for digital infrastructure across the country, various Saudi Arabian cities, such as Riyadh, Jeddah, Neom, Makkah, Madinah, Al Qassim, Al Ahsa, Neom, and other cities are also gaining traction for the development of data centers.

Saudi Arabia’s Personal Data Protection Law (PDPL) is contributing to increasing data center investments in the country by increasing the confidence of enterprises to host their workloads in data centers and cloud platforms as enterprises across both the public and private sectors prioritize data sovereignty, complying with strict privacy requirements. This law also regulates cross-border data transactions by mandating companies to obtain legal approval from data owners for all cross-border transactions to enhance data security.

The Saudi Green Initiative is a national sustainability program aligned with Vision 2030 that aims to reduce carbon emissions, expand afforestation, protect Saudi Arabia's natural ecosystems, and achieve net-zero greenhouse gas emissions by 2060. Data center operators in Saudi Arabia support Saudi Green Initiative's objectives by adopting energy-efficient infrastructure, increasing the use of renewable energy, minimizing water consumption, and deploying low-carbon cooling solutions.

SAUDI ARABIA DATA CENTER MARKET - KEY HIGHLIGHTS

1. Saudi Arabia consists of approximately 40 operational colocation data centers, of which 10 facilities are located in Dammam alone. Most of the data center facilities in Saudi Arabia have been designed to meet Tier III standards of the Uptime Institute. The Kingdom is witnessing the development of around 27 colocation data centers, which are either in the planning or under construction stages.
2. Saudi Arabia’s National Data Center Strategy aims to increase the nation’s data center capacity by 1.5 GW by 2030 to strengthen the Kingdom’s digital infrastructure and position Saudi Arabia as one of the prominent digital hubs in the Middle East region.
3. The data center operations in Saudi Arabia are regulated by Communications, Space, and Technology Commission (CST) by requiring data center companies to register their services with CST, comply with defined technical standards for power, cooling, and security maintenance, ensure continuous service availability through redundancy and disaster recovery planning, establish strong data protection measures to support secure and reliable data center operations, aligning with Vision 2030
4. The investments for the development of Artificial Intelligence (AI) ready data centers in expected to increase significantly in Saudi Arabia in the forthcoming years owing to the rapid surge in demand for processing artificial intelligence workloads. For instance, in December 2025, center3, a subsidiary of stc signed a Memorandum of Understanding with HUMAIN to develop multiple AI-ready data centers across Saudi Arabia. Initially, the companies have planned to add around 250 MW of data center capacity in Saudi Arabia, which will be increased to over 1 GW in the forthcoming years. The demand for AI-ready data centers, which are equipped with clusters of Graphics Processing Units (GPUs), liquid cooling technologies, high-density racks, and increased power capacities, is expected to rise significantly over the next five years.
5. Several enterprises across diverse sectors in Saudi Arabia are transitioning towards cloud platforms by prioritizing to host their IT infrastructure and workloads in cloud platforms. For example, in October 2025, Saudi Awwal Bank revealed its plan to migrate the company’s procurement processes to SAP Business Network, a cloud-based trading platform, to enhance Saudi Awwal Bank’s operational efficiency. The surge in enterprise cloud migration is expected to increase significantly during the forecast period.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and the Saudi Arabia colocation market revenue.
2. An assessment of the data center investment in Saudi Arabia by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Saudi Arabia data center market landscape, an in-depth industry analysis, and insightful predictions about the Saudi Arabian data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Saudi Arabia
6. Facilities Covered (Existing): 40
7. Facilities Identified (Upcoming): 27
8. Coverage: 10+ Locations
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Saudi Arabia
12. Colocation Market Revenue & Forecast (2022-2031)
13. Retail & Wholesale Colocation Revenue (2022-2031)
14. Retail & Wholesale Colocation Pricing
15. Saudi Arabia data center landscape market investments are classified into IT, power, cooling, and general construction services, with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.

SAUDI ARABIA DATA CENTER MARKET VENDOR LANDSCAPE

1. In Saudi Arabia, the colocation companies contribute for majority of the data center investments. Some of the prominent colocation firms operating in Saudi Arabia include DAMAC Digital, Gulf Data Hub, Mobily, Quantum Switch, Sahayeb Data Centers, center3, TONOMUS, among others.
2. The presence of global cloud service providers in Saudi Arabia further drives data center investments in the Kingdom. The global cloud companies, including Alibaba Group, Google, and Oracle, have a strong presence in Saudi Arabia, and Amazon Web Services, Microsoft, and Tencent are also investing to expand their cloud service offerings in the country. The cloud market in Saudi Arabia is expected to continue experiencing significant growth in the forecast period. For example, in May 2025, Oracle revealed its plans to invest over $14 billion to expand cloud and artificial intelligence infrastructure in Saudi Arabia.
3. The data center companies rely on IT infrastructure providers increasingly to procure core infrastructure, including servers, storage systems, and networking equipment. Some of the prominent IT infrastructure providers in the Kingdom of Saudi Arabia include Arista Networks, Atos, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur Group, Lenovo, NetApp, NVIDIA and Supermicro.
4. The companies like Axelerated Solutions, Al Latifia Trading & Contracting Co., Alfanar Projects, Ashi & Bushnag Co. (ABC) for Contracting, AtkinsRéalis, Aurecon, Azura Consultancy, Capitoline Data Centre Consultants, Dar, Edarat Group, HATCO for Trading & Contracting W.L.L., ICS Arabia, JAMED, Linesight, Manens KSA, Omrania, RED Engineering Design, SANA Control Systems, SAUDI TAAB CONTRACTING COMPANY, UBIK, and others offer wide range of construction, installation, commissioning, designing, architectural, and engineering services for the construction of data centers in Saudi Arabia
5. Saudi Arabia is experiencing the entry of several new entrants as the demand for digital infrastructure is increasing significantly in the country. Some of the new entrants include Agility Logistics Parks, Amazon Web Services, DataVolt, Desert Dragon Data Centers, Equinix, ezditek, HUMAIN, Microsoft, Pure Data Centres Group, Tencent, and Khazna Data Centers.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the region (Area and Power Capacity)
2. Dammam
3. Other Cities
4. List of Upcoming Facilities in the region (Area and Power Capacity)
5. Dammam
6. Other Cities

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, cooling systems, general construction, and Tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV
31. Geography
32. Dammam
33. Other Cities

VENDOR LANDSCAPE

1. IT INFRASTRUCTURE PROVIDERS: Arista Networks, Atos, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur Group, Lenovo, NetApp, NVIDIA, and Supermicro.
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: ABL TECHNICAL SERVICES, Axelerated Solutions, Al Latifia Trading & Contracting Co., ALEC Data Center Solutions, Alfanar Projects, Ashi & Bushnaq Co. (ABC) for Contracting, AtkinsRéalis, Aurecon, Azura Consultancy, Capitoline Data Centre Consultants, Critical Group, Dar, Edarat Group, EGEC, HATCO for Trading and Contracting, W.L.L., Hyundai Engineering & Construction, ICEM, ICS Arabia, ICS Nett Inc., Inteltec Emirates, JAMED, Linesight, Manens KSA, Omrania, RED Engineering Design, SALFO & ASSOCIATES SA., SANA Control Systems, SAUDI TAAB CONTRACTING COMPANY, and UBIK.
3. SUPPORT INFRASTRUCTURE PROVIDERS: ABB, Aggreko, Airedale, Alfa Laval, Baudouin, Canovate Group, Caterpillar, CHINT, Cummins, Delta Electronics, Eaton, Enrogen, GE Vernova, GRUNDFOS, Hitachi Energy, Honeywell, Legrand, Mitsubishi Electric, Rehlko, Rittal, Rolls Royce, Schneider Electric, Siemens, STULZ, Toshiba Corporation, The Chemours Company, and Vertiv.
4. DATA CENTER INVESTORS: Alibaba Group, DAMAC Digital, Google, Gulf Data Hub, Mobily, Oracle, Quantum Switch, Sahayeb Data Centers, center3, and TONOMUS.
5. NEW ENTRANTS: Agility Logistics Parks, Amazon Web Services, DataVolt, Desert Dragon Data Centers, Equinix, ezditek, HUMAIN, Microsoft, Pure Data Centres Group, Tencent, and Khazna Data Centers.