Saudi Arabia Data Center Market Size to Hit USD 7.7 Billion by 2033, With 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 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, the market is expected to reach USD 7.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.6% during 2025-2033.

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How AI and Digital Transformation is Reshaping the Future of Saudi Arabia Data Center Market

● Saudi Arabia's $5 billion AI investment fund boosts data center capacity, enabling smart infrastructure to support AI workloads and cloud-based services nationwide.

● AI-powered energy management systems cut data center power consumption by up to 25%, aligning with Saudi Arabia's push for sustainable, green technology practices.

● AI-enhanced security platforms improve threat detection and response times, safeguarding sensitive government and enterprise data housed in Saudi data centers.

● The National Data and AI Authority's initiatives focus on training AI experts, accelerating smart data center adoption across public and private sectors.

● Leading firms like Humain deploy AI-optimized cooling and workload distribution solutions, enhancing efficiency and reducing operational costs in Saudi data centers.

Saudi Arabia Data Center Market Trends & Drivers:

Saudi Arabia's data center market is rapidly expanding, driven by the government's National Data Center Strategy unveiled in 2025, which aims to build up to 1.5 gigawatts of data center capacity. This initiative supports Vision 2030 by positioning the Kingdom as a regional leader in cloud computing and AI technologies, attracting strong investment from global hyperscalers like AWS and Microsoft. Public-private partnerships and incentives for foreign investment are ramping up, all focused on developing cutting-edge, energy-efficient infrastructure critical for supporting the Kingdom's growing digital economy and smart city projects like NEOM.

The surge in cloud adoption, digital transformation, and AI integration across sectors such as healthcare, finance, and Industry 4.0 is pushing demand for reliable, high-capacity data centers. Saudi Arabia's strategic location combined with competitive energy tariffs and robust connectivity infrastructure enhances its appeal as a data hub. Major players including center3, Gulf Data Hub, and Mobily are actively expanding, with new facilities recently adding over 500 MW of capacity, primarily focused around Riyadh, Jeddah, and emerging hubs like Dammam and NEOM.

Innovations in sustainable cooling technologies and cybersecurity measures are emerging trends in the market, critical to managing high operational costs and protecting data integrity. Energy-efficient cooling systems tailored for the region's high temperatures are becoming industry standards. At the same time, the government emphasizes strict cybersecurity compliance alongside robust physical and network security frameworks. These advancements make Saudi data centers attractive for hosting sensitive AI workloads and sovereign data, supporting the nation's goal to become a digital powerhouse in the region.

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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

● October 2025: Humain launched an AI-optimized data center in Riyadh, increasing energy efficiency by 20% and supporting large-scale AI workloads.

● September 2025: Blackstone-backed AirTrunk announced strategic partnerships to build hyperscale data centers, enhancing Saudi Arabia's cloud infrastructure capabilities.

● August 2025: Saudi government rolled out a $1.5 billion fund targeting green cooling technologies for data centers, reducing environmental impact and operational costs.

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