Saudi Arabia Data Center Market Growth Accelerates amid Cloud Adoption and Vision 2030 Push (2025-2033)

Saudi Arabia Data Center Market Overview

Market Size in 2024: USD 2.1 Billion
Market Forecast 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

● AI-optimized cooling and energy management systems in Saudi data centers use real-time analytics and digital twins to cut cooling-related power use by up to 30%, keeping AI workloads efficient and sustainable.​

● At NEOM's Oxagon, a net-zero AI data center backed by about 5 billion dollars and 1.5 gigawatts of capacity will run entirely on renewable energy, purpose-built for large AI and HPC clusters.​

● Investors have pledged over 22 billion dollars at AI-focused events like LEAP, with a big share directed to AI-ready data centers, high-density racks, and sovereign AI infrastructure across the Kingdom.​

● Saudi developers are rolling out immersion-cooled "desert-proof" facilities, where dielectric fluid systems slash energy consumption by roughly 45% while supporting ultra-dense 100 kilowatt-per-rack AI servers in harsh climates.​

● AI itself is embedded into DC operations, automatically shifting workloads, predicting failures, and fine-tuning power usage effectiveness to near 1.2, unlocking higher uptime and better economics for hyperscalers and enterprises.

Saudi Arabia Data Center Market Trends & Drivers:

One of the biggest forces pushing Saudi Arabia's data center market forward is the sheer scale of capital flowing into digital infrastructure tied to AI and cloud. At the LEAP tech conference, commitments worth around 22-23 billion dollars were announced for AI and data centers in just a couple of days, with plans that collectively target more than 1.3 gigawatts of capacity across the Kingdom. A single KKR-Gulf Data Hub program alone is sized at up to 300 megawatts, while broader strategies led by the Ministry of Communications and SDAIA aim to attract roughly 18 billion dollars to hyperscale facilities. This level of funding is turning Saudi Arabia into a serious regional hub for cloud, AI, and high‐performance computing workloads.​

A second major growth driver is the rapid build-out of cloud regions and sovereign cloud offerings by global hyperscalers working with national telecom champions. Oracle has committed multi‐billion‐dollar investment into several Saudi cloud regions, with two regions already live in Jeddah and Riyadh and another planned for NEOM, while stc is rolling out a sovereign cloud based on Oracle Alloy to host over 100 cloud infrastructure services locally for public and private clients. At the same time, center3, an stc subsidiary, is pushing to reach 300 megawatts of installed capacity on the way to a one‐gigawatt footprint, reinforcing Saudi Arabia's role as a landing point for subsea cables and a neutral carrier hub. All of this keeps hyperscale demand anchored inside the Kingdom and pulls enterprise workloads into domestic data centers rather than overseas.​

The third powerful trend is how tightly Saudi Arabia is linking data center expansion with renewable energy, sustainability, and AI‐intensive workloads from giga‐projects like NEOM. Industry trackers estimate that announced and under‐construction sites could lift national data center power demand to around 1.6 gigawatts, with roughly 55% of capacity clustering around Riyadh and about 500 megawatts designed to run fully on renewable energy, including NEOM and Oxagon campuses. One flagship net‐zero AI data center in NEOM alone has a budget of about 5 billion dollars and is engineered to operate entirely on green power using a mix of solar, wind, and green hydrogen. This energy advantage, paired with efficient liquid cooling and desert-optimized designs, gives operators a cost and ESG edge that resonates strongly with hyperscalers, banks, and global cloud customers.

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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: ICS Arabia's Desert Dragon project is showcased at DCCI Saudi, positioning its sustainable, scalable data center ecosystem as a core platform for the Kingdom's digital future.

● July 2025: XDS and ICS Arabia announce a landmark 10 megawatt immersion-cooled data center in Riyadh and Jeddah, with rack densities reaching up to 368 kilowatts for AI workloads.

● February 2025: UK-based XDS Datacentres signs a 15-year deal to host 10 megawatts of AI workloads in Saudi's Desert Dragon facilities, targeting ultra-high-density GPU environments.

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