Saudi Arabia Data Center Market Size to Hit $USD 7.7 Billion by 2033 | With a CAGR of 15.6%

Saudi Arabia Data Center Market Overview

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 Size, Share, Trends and Forecast by Data Center Size, Tier Type, Absorption, 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.

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How Digital Technology Reshaping the Future of Saudi Arabia Data Center Market

● Government-led digital transformation under Vision 2030 is accelerating AI adoption across public sectors, with projects like NEOM and Smart Medina requiring scalable data center infrastructure worth $13.3 billion in investments by 2025.

● Cloud service adoption is revolutionizing Saudi Arabia's IT landscape, with Google Cloud and PIF partnering to build a global AI hub, driving demand for local data center infrastructure.

● 5G network deployment and IoT proliferation are fueling exponential data growth, with the Saudi Arabia 5G infrastructure projected to reach USD 4.81 billion by 2033, requiring advanced data processing capabilities.

● Data localization regulations enforced by the Saudi Data and AI Authority (SDAIA) are mandating critical data storage within the Kingdom, driving domestic data center construction.

● Hyperscale cloud vendors and colocation firms are investing heavily in Riyadh, Jeddah, and Dammam, establishing high-capacity, carrier-neutral facilities with advanced cooling and power redundancy.

Saudi Arabia Data Center Market Trends & Drivers:

● The rapid expansion of digital transformation initiatives under Saudi Arabia's Vision 2030 is a major factor driving the data center market. Government sectors are increasingly adopting cloud computing, smart city technologies, and AI-powered services to enhance efficiency and citizen engagement. Projects such as NEOM and the Smart Medina initiative are incorporating digital infrastructure that demands scalable, energy-efficient data centers. The Ministry of Investment projects digital transformation investments to reach $13.3 billion by 2025, growing at 17.2% annually, creating substantial demand for data storage and processing capabilities.

● Cloud computing adoption is revolutionizing Saudi Arabia's digital landscape as businesses migrate from traditional IT infrastructures to cloud-based solutions. This transition is driven by demands for flexibility, cost-effectiveness, and scalability in managing IT workloads. International cloud providers are establishing local data centers or partnerships to meet growing demand. Google Cloud and the Public Investment Fund announced plans to build a global AI hub in Saudi Arabia, highlighting the Kingdom's strategic importance in cloud infrastructure development.

● The accelerated rollout of 5G networks is creating exponential growth in data consumption and IoT applications. Telecom operators are expanding 5G infrastructure nationwide to support real-time communications, low-latency services, and massive IoT connectivity. Smart city initiatives combine thousands of IoT devices requiring decentralized computing and storage facilities. IMARC Group predicts the Saudi Arabia 5G infrastructure market will reach USD 4.81 billion by 2033, driving continuous investment in data center infrastructure.

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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

Recent News and Developments in Saudi Arabia Data Center Market

● September 2025: Government expands AI infrastructure investments under Vision 2030, with major data center projects announced in Riyadh and NEOM economic zones.

● August 2025: Google Cloud and PIF partnership advances with groundbreaking for new hyperscale data center facility to support regional AI and cloud services.

● July 2025: Saudi Data and AI Authority implements enhanced data localization requirements, accelerating domestic data center construction across multiple regions.

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.

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