Saudi Arabia Data Center Market Set to Surge to USD 8.49 Billion by 2034 at 14.93% CAGR

Saudi Arabia Data Center Market Overview
Market Size in 2025: USD 2.43 Billion
Market Forecast in 2034: USD 8.49 Billion
Market Growth Rate 2026-2034: 14.93%

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, 2026-2034", the Saudi Arabia data center market size was valued at USD 2.43 Billion in 2025 and is projected to reach USD 8.49 Billion by 2034, growing at a compound annual growth rate of 14.93% from 2026-2034.

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

● AI is fueling massive investments in Saudi Arabia's data centers through Vision 2030, with the Public Investment Fund committing $40 billion to build AI hubs and advanced infrastructure, boosting digital economy growth and innovation across sectors.

● Partnerships like HUMAIN's $10 billion deal with NVIDIA are transforming data centers into AI factories, enabling high-performance computing for local models and attracting global talent to the kingdom's tech scene.

● Government schemes such as SDAIA's national AI strategy are optimizing data centers with over $5.3 billion from AWS, focusing on cloud regions that support secure, efficient AI workloads for businesses and public services.

● The push for AI-ready data centers is evident in projects like the Google Cloud-PIF collaboration, investing $10 billion to create specialized facilities that handle massive datasets and drive economic diversification beyond oil.

● Emerging trends include sustainable AI data centers with 1.9 gigawatts capacity planned by HUMAIN, backed by Qualcomm partnerships, enhancing energy efficiency and positioning Saudi Arabia as a regional leader in tech infrastructure.

Saudi Arabia Data Center Market Trends & Drivers:

Saudi Arabia's data center market is booming thanks to Vision 2030, the massive government push turning the Kingdom into a digital powerhouse. This initiative pours billions into digital infrastructure, with projects like NEOM and smart cities demanding huge computing power for everything from AI analytics to real-time IoT sensors. Riyadh already holds 26.68% of the nation's installed capacity, acting as the central hub for banks and government ops, while Dammam surges ahead in the east, fueled by energy giants diversifying into tech. Big players like STC and Mobily are expanding Tier 3 facilities there, supporting data localization rules that keep sensitive info onshore. Hyperscalers such as AWS, Google, and Microsoft are jumping in with cloud regions, drawn by cheap energy and fiber backbones-Riyadh's proximity to ministries makes it perfect for low-latency enterprise needs. It's not just talk; these builds handle AI workloads for healthcare records and fintech transactions, making Saudi a MENA data gateway. Overall, Vision 2030 isn't optional-it's the engine propelling reliable, sovereign infrastructure that businesses crave.

Another key factor is the exploding demand for AI and cloud services, as businesses and the government ramp up digital transformation. With AI expected to add significant value to the GDP, investments are pouring in, like the $5.3 billion from Amazon Web Services to expand cloud regions and data centers across the KSA. Companies are leveraging this for real applications, such as smart city projects in NEOM that rely on high-performance computing for IoT and big data analytics. Statistics show a 30% spike in cloud service usage thanks to government digital initiatives, driving the need for scalable storage and processing. It's all about handling the surge in data from e-commerce and 5G networks, where low-latency edge computing is becoming essential, helping sectors like healthcare and finance operate smoother and innovate quicker.

AI workloads and 5G rollout are the hot new trends exploding demand, with nationwide fiber and edge nodes handling massive traffic spikes from smart apps. AI needs high-density racks-think training models for oil exploration or personalized banking-and Saudi's energy abundance keeps costs low, drawing giants like Google for dedicated zones. Dammam's 15.50% capacity jump ties into eastern industrial AI pilots, where Pure Data Centres builds for renewable-tied grids. Real-world wins? LEAP events showcase Mobily's AI platforms crunching healthcare data for faster diagnostics. Plus, 5G backbones boost edge facilities for low-latency gaming and autonomous vehicles in Riyadh trials. Regulations now favor green cooling tech, aligning with diversification goals. This combo positions Saudi as the region's AI hub, where startups plug into hyperscaler pipes for instant scale-it's practical innovation meeting real business needs head-on.

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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

● February 2026: Neom megaproject shifts focus to become a major data center hub with water-cooled infrastructure, leveraging renewable energy and land advantages to attract AI investors and support industrial applications amid Vision 2030 goals.

● January 2026: Saudi Arabia breaks ground on the Hexagon data center in Riyadh, a 480MW Tier IV facility spanning over 30 million square feet, claimed as the world's largest government-owned data center to strengthen national data sovereignty and AI capabilities.

● January 2026: HUMAIN and partners advance AI data center builds, including up to 250MW capacity financing from Infra, targeting GPU-dense setups for high-performance AI workloads and positioning the kingdom as a global AI infrastructure leader.

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