Saudi Arabia Data Center Market Size To Reach $7.7 Billion By 2033, At A CAGR Of 15.6%

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, IMARC Group expects the market to reach USD 7.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.6% during 2025-2033.

Growth Factors in the Saudi Arabia Data Center Market

• Digital Transformation & Cloud Adoption

Saudi Arabia's data center industry is being propelled by a sweeping digital transformation across government and private sectors. The government's Cloud First policy pushes organizations to prioritize cloud solutions for new IT projects, which is bringing unprecedented demand for agile and secure data center infrastructure. To bolster this shift, the government established a special cloud economic zone with flexible regulations and attractive incentives, aiming to spark innovation and draw global players. Thanks to these efforts, public cloud spending is climbing fast, generating an estimated $109 billion boost to the national economy and supporting nearly 148,600 new jobs. Additionally, over 30 registered cloud service providers are now active in the country, creating a robust competitive environment. Organizations, including government offices, are rapidly migrating to unified cloud platforms, making scalable, secure, and efficient data center facilities a must.

• Strategic Investments & Mega-Project Initiatives

A massive wave of strategic investment is fueling the rapid expansion of Saudi Arabia's data center landscape. The Kingdom is channeling more than $18 billion into large-scale projects, targeting over 1,300 MW of new data center capacity in the coming years. Standout developments include a 1 GW facility in Oxagon as part of the visionary NEOM project and DataVolt's $5 billion net-zero AI data center campus. Both national champions and international giants-like Microsoft, AWS, Google, and Equinix-are ramping up investments and forming partnerships to support this explosion of digital activity. The Ministry of Communications and Information Technology is coordinating with local and global firms to drive these mega-projects, ensuring world-class standards for sustainability, scalability, and technological innovation. This concerted push secures Saudi Arabia's status as a premier regional hub for digital infrastructure.

• Government Vision & Regulatory Support

Saudi Arabia's Vision 2030 and its ambitious digital goals provide a strong foundation for data center growth. Vision 2030 calls for a diversified, innovation-driven economy, supported by targeted investments in digital infrastructure, smart cities, and renewable energy. Initiatives like the National Transformation Program and Smart City developments-most notably NEOM-are shaping a future where secure, high-capacity data centers are central. The government's regulatory framework, including the Cloud Computing Regulatory Framework (CCRF) and Personal Data Protection Law (PDPL), ensures a business-friendly environment with strong privacy safeguards and pragmatic guidelines for operators. These policies encourage both domestic innovation and foreign direct investment, igniting competition and making it easier for international players to establish a presence in the Kingdom.

Key Trends in the Saudi Arabia Data Center Market

• Hyperscale & Mega Data Centers

A growing appetite for cloud and AI applications is driving a tangible shift toward hyperscale and mega data centers across Saudi Arabia. Market leaders and new entrants alike are building ultra-large facilities, with several projects surpassing hundreds of megawatts in scale. For example, EDGNEX plans to roll out 500 MW of future data center capacity, while DataVolt collaborates with NEOM on a net-zero, 1.5 GW AI-focused campus. These state-of-the-art data centers cater to hyperscalers like AWS, Google, and Microsoft, who are all in the process of launching dedicated cloud regions in the country. The presence of these hyperscale operators ensures not just greater storage and processing power, but also a new standard for security, efficiency, and global connectivity.

• Sustainability & Renewable Energy Integration

Sustainability is quickly becoming a non-negotiable feature of the Saudi data center sector. Many new developments are integrating renewable energy sources such as solar and wind, aligning with the Kingdom's goal to power half the nation with clean energy by 2030. Projects like the DataVolt campus in NEOM leverage advanced energy-efficient designs, including green hydrogen and cutting-edge cooling technologies, to minimize environmental impact. Driven by regulatory pressure and corporate ESG commitments, operators are setting targets for carbon neutrality and actively tracking resource consumption. These green initiatives not only reduce costs in the long term but also enhance Saudi Arabia's appeal to global partners and environmentally conscious clients seeking low-carbon digital infrastructure.

• Intensified Regional Connectivity & Data Sovereignty

Saudi Arabia's unique geographic location and growing network of international subsea and fiber-optic cables are turning it into the Middle East's primary digital crossroads. With connections reaching APAC, Europe, and Africa, data can be delivered to a third of the world's population in under 25 milliseconds from Saudi soil. At the same time, strict data sovereignty and localization regulations are compelling international companies to physically establish facilities within the country. This trend is opening new opportunities for local players, joint ventures, and global brands looking to comply while tapping into booming data-driven markets. Investments in connectivity and strategic partnerships-such as ServiceNow's $500 million expansion-are setting a new standard for speed, security, and regulatory alignment.

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

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

Future Outlook

Looking ahead, Saudi Arabia is shaping up as the region's go-to hub for digital infrastructure, fueled by relentless investment, bold public policy, and surging demand for advanced technologies. As hyperscale data centers launch and AI-driven services take off, businesses across sectors will find it easier to scale, innovate, and serve both domestic and international clients. Expect ongoing regulatory reforms to attract even more global players, while sustainability initiatives keep green technology at the forefront of new developments. The rise of smart cities, AI, and cloud-native solutions will only intensify the need for resilient, scalable facilities. In this ongoing race to lead the digital revolution, Saudi Arabia's data center market is primed for dynamic and sustainable growth, offering real opportunity for investors and operators willing to innovate.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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

MENAFN30072025004122016232ID1109860435