Saudi Arabia Data Center Market to Surpass USD 3.9 Billion by 2030, Fueled by Digital Infrastructure

The Data center market in Saudi Arabia is expected to witness lucrative growth owing to the growing inclination of companies towards cost-effective, effortlessly scalable, and offering accessibility. Additionally, the rapid growth of e-commerce has played a crucial role in Saudi Arabia Data Center Market.

Saudi Arabia Data Center Market Outlook 2025-30

According to the latest report published by Markntel Advisors, the Saudi Arabia Data Center Market size was valued at around USD 1.9 billion in 2024 and is projected to reach USD 3.9 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 13% during the forecast period, i.e., 2025-30. This flourishing growth is further attributed to the growing shift towards hyper-scale and mega data centers.

Saudi Arabia Data Center Market Segmentation Analysis 2025

The industry is further bifurcated into:

Based on Data Center Size:

• Large,
• Massive,
• Medium,
• Mega,
• Small

Based on Tier Type:

• Tier I and II,
• Tier III,
• Tier IV

Based on Absorption:

• Non-Utilized,
• Utilize (Colocation type, End user)

Based on Region:

• North
• South
• East
• WestS

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Saudi Arabia Data Center Market Growth Drivers

Key factors driving the growth of Saudi Arabia’s data center market include:

• Vision 2030 Initiatives: The government has allocated USD 18 billion to establish hyperscale data centers, positioning Saudi Arabia as a regional digital hub.
• Rising Data Demand: Increased adoption of IoT devices, cloud services, and social media platforms has created substantial demand for data storage and processing.
• 5G Network Expansion: The proliferation of 5G technology enhances connectivity and drives demand for advanced data center infrastructure.
• Smart Cities Development: Projects like NEOM incorporate cutting-edge data center facilities to support urban digitization.
• Favorable Policies: Reduced electricity rates for cloud providers and tax incentives encourage investment in data centers.

Competitive Landscape: Leading Companies in Saudi Arabia Data Center Market

Key players shaping Saudi Arabia data center market include:

• DETASAD Gornatha,
• NourNET,
• Mobily Malga 1,
• EDGNEX Riyadh RUH-1,
• GO Datacenter,
• Quantum Switch DMM-A,
• Center3 Jeddah203,
• Gulf Data Hub KAUST 1,
• DataVolt,
• Salam Khobar CLS,
• Gateway Gulf DC Dammam, and others

Market Challenges & Opportunities

Challenges:

• High Energy Consumption: Data centers require significant power resources, posing sustainability challenges.
• Cybersecurity Risks: Increasing reliance on digital infrastructure heightens vulnerability to cyber threats.

Opportunities:

• Green Data Centers: Investments in renewable energy-powered facilities align with global sustainability goals.
• Edge Computing Expansion: Rising demand for localized data processing creates opportunities for edge data centers.
• Global Partnerships: Collaborations with international tech companies enhance infrastructure capabilities.

FAQs Section

Q1: What is the projected CAGR for Saudi Arabia data center market?

A: The market is expected to grow at a CAGR of 13% between 2025 and 2030.

Q2: How much is the market expected to be worth by 2030?

A: The market is forecasted to reach USD 3.9 billion by 2030.

Q3: What role does Vision 2030 play in this market?

A: Vision 2030 drives investments in hyperscale facilities and digital infrastructure, positioning Saudi Arabia as a regional computing powerhouse.

Q4: Who are the major players in this industry?

A: Key players include ACWA Power, Etihad Etisalat Company (Mobily), Oracle, Gulf Data Hub, and Huawei.

Conclusion

With the growing trends the industry is projected to grow and expand during the forecasting years i.e., 2025-30 as the above-stated factors are changing the market landscape and opening doors to the market players. Market players can enhance their market size & revenue by meeting the changing market dynamics and evolving consumer expectations. Additionally, market players with the help of SWOT analysis can adjust their existing settings regarding the evolving market trends, which would ultimately augment the size & volume of the entire industry at the national level.

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