Saudi Arabia Power Market Size to Surpass 104.4 GW by 2033, At CAGR 2.76% | Demand & Outlook

Saudi Arabia Power Market Overview

Market Size in 2024: 81.7 GW
Market Forecast in 2033: 104.4 GW
Market Growth Rate 2025-2033: 2.76%

According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2025-2033", The Saudi Arabia power market size was valued at 81.7 GW in 2024. Looking forward, IMARC Group estimates the market to reach 104.4 GW by 2025-2033, exhibiting a CAGR of 2.76% from 2025-2033.

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How AI is Reshaping the Future of Saudi Arabia Power Market

● Saudi Arabia's AI push is powered by nearly $1 trillion in sovereign wealth, with Humain leading AI data center projects that plan to deploy up to 6 gigawatts of power nationwide, accelerating AI infrastructure growth.

● AI-driven predictive maintenance is widely adopted by Aramco and other energy firms, enhancing operational efficiency and cutting costs across over 120 industrial sites.

● The government's AI strategy includes training thousands of Saudis in data science and machine learning, ensuring a skilled workforce to support AI-powered energy and smart grid advancements.

● Partnerships with global AI giants like Nvidia, Qualcomm, AWS, and Cisco empower Saudi Arabia's AI ecosystem with cutting-edge cloud services and computing power.

● AI helps optimize renewable energy management under extreme climate conditions, boosting solar and wind efficiency while supporting grid stability and sustainability goals.

Saudi Arabia Power Market Trends & Drivers:

Three major factors are currently driving the growth of the Saudi Arabia power market. First is the soaring electricity demand driven by rapid urbanization, population growth, and industrial expansion. Energy consumption saw a sharp increase of around 10% in the first half of this year alone, fueled mainly by the growing industrial sector and residential needs linked with economic diversification efforts. The government's keen focus on upgrading power infrastructure to support this demand is evident in multibillion-dollar investments in new substations and grid modernization projects, which ensure reliable transmission and distribution across the kingdom, including remote areas and smart cities like NEOM.​

The second major driver is the aggressive governmental push towards renewable energy under Vision 2030, prioritizing solar and wind power to reduce dependence on oil-based electricity. The National Renewable Energy Program (NREP) has awarded projects totaling over 4.5 GW in recent solar and wind tenders alone, with companies like ACWA Power investing billions in these initiatives. The kingdom aims to generate half of its electricity from renewables, and recent deals have locked in record-low tariffs for solar and wind projects, alongside ambitious energy storage targets of gigawatt-hours scale to ensure grid stability and reliability.​

Lastly, comprehensive sector reforms and smart grid technologies are transforming Saudi Arabia's power landscape. The government is actively restructuring the electricity sector to boost private sector participation and promote sustainability, including privatizing generation companies and localizing manufacturing. Investments in smart grid technologies, advanced transformers with digital monitoring, and automation reduce transmission losses and improve grid resilience. These efforts underpin the transition to a more efficient, automated power system that supports expanding renewables and enhances service reliability-key to the kingdom's economic and energy ambitions.​

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Saudi Arabia Power Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Generation Source:

● Thermal
● Hydro
● Renewable
● Others

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

● Saudi Electricity Company (SEC)
● National Grid SA
● Acwa Power
● Kepco
● SPPC

Recent News and Developments in Saudi Arabia Power Market

● Oct 2025: Saudi Arabia awards 4.5 GW of renewable projects, including cutting-edge solar and wind farms, pushing the kingdom toward a sustainable energy future.

● Sep 2025: Aramco partners with Humain to invest heavily in AI data centers, integrating smart energy management and enhancing grid efficiency across power operations.

● Aug 2025: The Ministry of Energy launches advanced smart grid initiatives using AI and IoT, reducing transmission losses by over 15% and boosting power reliability nationwide.

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.

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