Saudi Arabia Cloud Services Market Projected to Reach USD 13.9 Billion by 2034 Surge at 12.69% CAGR

Saudi Arabia Cloud Services Market Overview
Market Size in 2025: USD 4.5 Billion
Market Forecast in 2034: USD 13.9 Billion
Market Growth Rate 2026-2034: 12.69%

According to IMARC Group's latest research publication, "Saudi Arabia Cloud Services Market Report by Deployment (Public Cloud, Private Cloud), End Use Industry (Oil, Gas, and Utilities, Government and Defense, Healthcare, Financial Services, Manufacturing and Construction, and Others), and Region 2026-2034", the Saudi Arabia cloud services market size reached USD 4.5 Billion in 2025. The market is projected to reach USD 13.9 Billion by 2034, exhibiting a growth rate (CAGR) of 12.69% during 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia Cloud Services Market

● Saudi Arabia's National Data Center Strategy, rolled out by MCIT and SDAIA, targets 1.5 gigawatts of capacity to supercharge cloud for AI workloads, aligning perfectly with Vision 2030's push for digital leadership and drawing in big U.S. partnerships like DataVolt's $20 billion deal with Supermicro.

● Businesses in the Kingdom are pouring cash into AI, with over 25% of enterprises dropping more than $50 million each on initiatives, fueled by hyperscalers like Microsoft and Google building local cloud regions for sovereign data handling.

● The government just committed $14.9 billion alongside giants like Google Cloud and Alibaba to ramp up AI and cloud tech, positioning Saudi as a global AI powerhouse through massive infrastructure and talent boosts.

● SDAIA leads the charge in Vision 2030 by embedding AI into public services like e-governance and healthcare via cloud platforms, sparking enterprise use in oil, retail, and finance for smarter analytics and automation.

● SentinelOne just launched its AI-driven Singularity Platform on Google Cloud right in Saudi Arabia, ensuring data stays local while delivering real-time cyber protection to match the exploding demand for secure cloud AI.

Saudi Arabia Cloud Services Market Trends & Drivers:

One huge driver for the Saudi Arabia cloud services market is the government's Vision 2030 push, which is all about shifting away from oil and embracing tech to revamp everything from healthcare to finance. They've rolled out the Cloud First Policy, mandating that public agencies prioritize cloud solutions, and poured about $1.8 billion into digital upgrades to make operations smoother and more efficient. This has sparked real-world action, like NEOM's smart city setups relying on cloud for IoT and data analytics to manage everything from traffic to energy. Stats show around 70% of businesses are bumping up their cloud spending to keep pace, while hyperscalers like AWS and Microsoft are setting up local data centers to handle the surge. It's creating a buzz, turning the Kingdom into a tech hub where even small firms can scale up without massive upfront costs. Companies are loving it for the flexibility in handling big data loads during peak times.

Another key factor is the boom in e-commerce and remote work, with nearly 99% of folks having high-speed internet access, making cloud essential for seamless online shopping, virtual meetings, and data storage. Think about how banks are using cloud for secure transactions, or retailers like those in Riyadh malls tapping into it for inventory tracking that cuts waste by up to 20%. The market's sitting at roughly USD 4.8 billion, fueled by these everyday applications that keep businesses agile. On the company front, Google just expanded its cloud region here, partnering with locals to offer tailored services that comply with data rules. It's not just tech giants; smaller players are jumping in too, using hybrid setups to mix on-site and cloud for better control. This trend feels organic, as more Saudis go digital in their daily lives, pushing demand for reliable, scalable services that adapt to growing needs without breaking the bank.

An emerging trend that's really taking off is the integration of AI into cloud platforms, where firms are using it to crunch massive datasets for smarter decisions, like predictive maintenance in oil fields or personalized shopping recommendations. With over USD 21 billion in foreign investments flowing into data centers, it's enabling low-latency AI tools that boost efficiency by 15-20% in sectors like manufacturing. Government schemes are backing this too, with the National Center for AI teaming up with cloud providers for training programs that upskill thousands. In practice, this means healthcare apps spotting diseases faster via cloud-hosted AI models, or finance firms detecting fraud in real time. Companies like Oracle are making waves with new AI-optimized services tailored for the region, ensuring data stays local for privacy. It's exciting because it's not just hype-it's solving real problems, making Saudi businesses more competitive on the global stage while keeping things secure and innovative.

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Saudi Arabia Cloud Services Industry Segmentation:

The report has segmented the market into the following categories:

Deployment Insights:

● Public Cloud
● Software-as-a-Service (SaaS)
● Platform-as-a-Service (PaaS)
● Infrastructure-as-a-Service (IaaS)
● Private Cloud

End Use Industry Insights:

● Oil, Gas, and Utilities
● Government and Defense
● Healthcare
● Financial Services
● Manufacturing and Construction
● Others

Regional Insights:

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

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Cloud Services Market

● January 2026: Cloud registrations hit 3,200 across Saudi cities like Riyadh and Makkah, up 33% from last year, as global hyperscalers like Google and Tencent ramp up sovereign cloud models for AI-driven operations.

● January 2026: SentinelOne rolls out its Singularity Platform on Google Cloud Marketplace in Saudi Arabia, delivering AI-powered cyber defense with sovereign data residency for secure enterprise cloud use.

● December 2025: SUSE launches operations in Riyadh, powering open-source cloud for data sovereignty and Vision 2030 digital goals.

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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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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This release was published on openPR.