Insights Into Saudi Arabia's $1.5 Billion Cloud Data Centers Market, 2025-2030: Growth Prospects And Investment Opportunities

(MENAFN- GlobeNewsWire - Nasdaq) Rising AI and IoT adoption boosts demand for extensive data processing & storage, positioning cloud service providers to capitalize on these expanding sectors

Dublin, Dec. 11, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Cloud Data Centers Market" has been added to ResearchAndMarkets's offering.

The Saudi Arabia Cloud Data Centers Market, valued at USD 1.5 billion, continues its robust growth, primarily propelled by the increasing demand for digital transformation, e-commerce expansion, and the government's push towards a knowledge-based economy. The surge in cloud services and data storage needs are key contributors to this market's development.

Strategically positioned cities like Riyadh, Jeddah, and Dammam lead the market due to their advantageous locations, substantial infrastructure, and major telecommunications presence. Riyadh serves as a central hub for governmental and business activities, while Jeddah and Dammam excel in logistics and trade, enhancing their appeal for cloud data center investments.

In 2023, the Saudi government enacted the "Cloud Computing Regulatory Framework," setting foundational guidelines for data protection, privacy, and security in cloud services to bolster trust and attract investments in the sector.

Industry Analysis

• Growth Drivers: The government has committed roughly $1.5 billion to digital transformation, catalyzing a 30% projected increase in cloud service use. Investments in smart city projects like NEOM and widespread internet infrastructure further drive demand, enhancing market growth.
• Challenges: The high initial financial barriers, with facility costs exceeding $10 million, alongside regulatory hurdles such as compliance with stringent data protection laws, can pose challenges to market entrants and expansion.

Market Segmentation

• By Type: The market diversifies into Colocation Data Centers, Managed Hosting Services, Cloud Infrastructure Services, Hybrid Cloud Solutions, Edge Data Centers, among others. Colocation Data Centers dominate the market, favored for secure, scalable solutions, particularly among SMEs and large enterprises. Managed Hosting Services also experience growth, aligned with businesses seeking to outsource IT operations efficiently.
• By End-User: Key segments include IT and Telecommunications, Government, Healthcare, Financial Services, and Retail. The IT and Telecommunications sector leads, driven by a need for high-speed connectivity and advanced data processing. The sector's expansion is fueled by rising cloud-based application demands. Government adoption enhances service delivery, while Healthcare and Financial Services pursue secure compliance-oriented solutions.

Competitive Landscape

The landscape features a dynamic array of regional and international players such as STC Cloud, Mobily, Zain KSA, Oracle Cloud, Microsoft Azure, AWS, IBM Cloud, and others, stimulating innovation and service expansion.

Future Outlook

The market looks promising, with shifts towards hybrid cloud solutions and a growing emphasis on sustainability and data sovereignty. E-commerce growth, projected at $13 billion, and rising AI and IoT technology adoption, with investments reaching $7 billion, present valuable opportunities for cloud service providers to expand and adapt their offerings.

A selection of companies mentioned in this report includes, but is not limited to:

• STC Cloud
• Mobily
• Zain KSA
• Oracle Cloud
• Microsoft Azure
• Amazon Web Services (AWS)
• IBM Cloud
• Alibaba Cloud
• Gulf Data Hub
• NTT Communications
• Equinix
• DigitalOcean
• Rackspace Technology
• VIRTUS Data Centres
• Khazna Data Centers

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