MARKET INSIGHTS

The Saudi Arabia data center market size will witness investments of USD 2.08 billion by 2028, growing at a CAGR of 7.98% from 2022-2028. Saudi Arabia is among the second top data center market in the Middle East region. Some data center operators operating in the country include Saudi Telecom Company(stc), Mobily, NourNet, GO Telecom (Etihad Atheeb Telecom Company), Gulf Data Hub, and others. The high internet and social media penetration across the country driven by COVID-19, deployment of 5G services, better and improved inland connectivity, and others make the Saudi Arabia data center market attractive to investors.

Introducing the Personal Data Protection Law (PDPL) in the country will protect the citizens' confidentiality and personal data, boosting the market. Further, developing Special Economic Zones (SEZs), Free Trade Zones (FTZs), and smart city investments will also boost the Saudi Arabia 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 and expect to generate over 50% of the energy from renewable energy by 2030.

KEY HIGHLIGHTS

• Saudi Arabia has over 20 operational colocation data centers. Riyadh is the primary location for investment in the Saudi Arabia data center market, followed by Jeddah, Dammam, and other cities. Neom is the new smart city that will attract new investments over the forecast period.
• Significant deployment and adoption of 5G services and the development of smart cities in Saudi Arabia will fuel data traffic and further grow the demand for more data centers in the country. For instance, Amazon Web Services announced the availability of AWS Outposts. This fully managed service offers AWS services and AWS infrastructure for a full virtual experience of a data center colocation space.
• The country is also witnessing improvement in submarine and inland connectivity. For instance, 2Africa, the longest subsea cable, will be deployed to connect Saudi Arabia with other countries such as India, the UAE, Spain, the UK, Oman, and others.
• Gulf Data Hub is among the top colocation operator in the country that is currently developing a new data center facility in Dammam and has further planned several facilities across Riyadh, Jeddah, and Dammam.
• Adopting a cloud-first strategy by the government and public sectors is likely to boost cloud adoption and market in the country. Global cloud companies such as Google, Microsoft, Oracle, and Alibaba Cloud have entered the Saudi Arabia data center market.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Saudi Arabia colocation market revenue.
• An assessment of the data center investment in Saudi Arabia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Saudi Arabia data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Saudi Arabia
  • Facilities Covered (Existing): 21
  • Facilities Identified (Upcoming): 40
  • Coverage: 6 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Saudi Arabia
  • Colocation Market Revenue & Forecast (2022-2028)
  • Wholesale vs. Retail Colocation Revenue (2022-2028)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Saudi Arabia market investments are classified into IT, power, cooling, 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 industry.

VENDOR LANDSCAPE

• Some of the key colocation investors in the Saudi Arabia data center market in 2022 are Saudi Telecom Company (stc), Gulf Data Hub, Damac Data Centres (EDGNEX), ZeroPoint DC, and others.
• Quantum Switch Tamasuk (QST), the joint venture between Quantum Switch and Tamasuk, aims to develop six facilities across Jeddah, Riyadh, Dammam, and Neom with a power capacity of around 300 MW by 2026.
• The hyperscale operator Google announced its plan to develop a cloud and data center region in Saudi Arabia in partnership with Aramco and three availability zones likely to be online in the next 2-3 years.
• Microsoft has also announced its entry into the Saudi Arabia data center market. In addition, Oracle Cloud has also planned to open a new cloud region in Riyadh with one availability zone.
• The country is also witnessing an increase in the adoption of cloud services. Oracle, Huawei Cloud, Microsoft, and Google are developing their cloud regions in the country.
• Enrogen, the UK-based diesel generator company, signed a deal with a cloud company currently developing its cloud region, tentatively Google, to provide 30 MW diesel generators.
• Telecom operators such as Saudi Telecom Company (stc), Mobily, and Zain are the major telecom operators that have deployed 5G technology in some cities on a trial basis.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Riyadh
  • Jeddah
  • Dammam
  • Other Cities
• 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
  • 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
  • Dammam
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo, and NetApp.
• Data Center Construction Contractors & Sub-Contractors: ALEC Data Center Solutions, Al-Latifia Trading and Contracting, Ashi & Bushnag, Atkins, Aurecon, Capitoline, Critical Facilities Consulting & Services, DC PRO BV, Dar Group, Edarat Group, EGEC, HATCO, ICS Nett, INT’LTEC Group, JAMED, Linesight, RED, SANA Creative Systems, and UBIK.
• Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Canovate, Caterpillar, Cummins, Eaton, Enrogen, Grundfos, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: Gulf Data Hub, Mobily, Oracle, and Saudi Telecom Company (stc).
• New Entrants: Agility, Damac Data Centres (EDGNEX), Google, Microsoft, Quantum Switch Tamasuk (QST), and ZeroPoint DC.