Saudi Arabia Data Center Services Market Size To Exceed USD 6.6 Billion By 2034 | CAGR of 14.67%

Saudi Arabia Data Center Services Market Overview

Market Size in 2025: USD 1.9 Billion

Market Size in 2034: USD 6.6 Billion

Market Growth Rate 2026-2034: 14.67%

According to IMARC Group's latest research publication, "Saudi Arabia Data Center Services Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia data center services market size reached USD 1.9 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 6.6 Billion by 2034, exhibiting a CAGR of 14.67% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Data Center Services Market

● AI-Optimized Infrastructure Development: Artificial intelligence is revolutionizing data center design and operations across Saudi Arabia, with specialized AI-ready facilities incorporating advanced GPU clusters, high-density computing racks, and innovative cooling technologies to support machine learning workloads, large language model training, and real-time AI inference processing for hyperscalers and enterprises.

● Intelligent Energy Management and Sustainability: AI-powered systems are transforming energy efficiency in Saudi data centers through predictive analytics for power consumption, automated cooling optimization, and smart resource allocation, enabling operators to reduce Power Usage Effectiveness (PUE) ratios while supporting the Kingdom's renewable energy integration goals and net-zero commitments aligned with Vision 2030.

● Automated Operations and Predictive Maintenance: Machine learning algorithms are streamlining data center operations through automated monitoring systems, predictive maintenance protocols, and intelligent capacity planning, reducing downtime by identifying potential equipment failures before they occur and optimizing resource utilization across colocation and managed hosting environments throughout the Kingdom.

● Enhanced Security and Compliance Monitoring: AI-driven security systems deployed in Saudi data centers utilize behavioral analytics, anomaly detection, and automated threat response mechanisms to protect critical infrastructure, ensure compliance with local data sovereignty regulations, and safeguard sensitive information for government, financial services, and healthcare sector clients.

● Smart Workload Distribution and Edge Computing: Artificial intelligence is enabling sophisticated workload management across distributed data center networks in Saudi Arabia, optimizing data placement between hyperscale facilities and edge computing nodes to support 5G applications, smart city initiatives, and latency-sensitive IoT deployments across Riyadh, Jeddah, Dammam, and emerging technology hubs like NEOM.

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Saudi Arabia Data Center Services Market Trends & Drivers:

Saudi Arabia's data center services market is experiencing unprecedented growth driven by massive hyperscaler investments and government-backed digital transformation initiatives under Vision 2030. Global technology leaders including Microsoft, AWS, Google Cloud, and Oracle are establishing multi-billion dollar cloud regions across the Kingdom, with Microsoft completing three Azure availability zones in the Eastern Province scheduled for full operational launch in 2026 as part of its USD 2.1 billion investment commitment. Amazon Web Services plans to launch its Saudi Arabia region in 2026 with an investment exceeding USD 5.3 billion, while Oracle has expanded its Riyadh cloud region to support enterprise and government digitization programs. These hyperscale deployments are creating robust demand for colocation services, managed hosting infrastructure, and Tier III and Tier IV facilities capable of supporting mission-critical workloads with guaranteed uptime and advanced redundancy features.

The Kingdom's ambitious artificial intelligence initiatives are reshaping data center infrastructure requirements and driving capacity expansion across major cities. Saudi Arabia's Public Investment Fund-backed HUMAIN has partnered with DataVolt to develop multi-gigawatt AI data centers nationwide, while DataVolt separately signed a landmark agreement with NEOM in February 2025 to construct the region's first net-zero AI factory campus in Oxagon with an initial USD 5 billion investment, targeting 1.5 gigawatt capacity and expected operational launch in 2028. In May 2025, DataVolt announced a USD 20 billion multi-year partnership with Supermicro to deploy ultra-dense GPU platforms and rack systems for hyperscale AI campuses. Additionally, HUMAIN awarded Al Moammar Information Systems a contract worth approximately SR 1.88 billion to design and construct a private AI-focused data center with advanced infrastructure supporting up to 1 gigawatt of power capacity, demonstrating the Kingdom's commitment to becoming a regional AI hub.

Strategic infrastructure projects and regulatory frameworks are accelerating data center market growth across Saudi Arabia's key technology corridors. The Saudi Authority for Industrial Cities and Technology Zones (MODON) has facilitated major data center developments, with DataVolt securing land lease agreements in February 2025 to develop AI-ready facilities on 55,000 square meter plots within Riyadh's First Technology Park. ICS Arabia's Desert Dragon Data Centers project represents a joint venture with China Mobile International totaling USD 1.90 billion investment across three years, delivering 187 MW capacity through phased deployments in Riyadh (65 MW operational by March 2026), Jeddah (50 MW completing late 2026), and Dammam/NEOM (72 MW). The National Data Management Office (NDMO) regulation mandating data localization for public sector and certain commercial applications is compelling organizations to adopt in-country colocation and cloud services, while the Cloud Computing Regulatory Framework enforces strict data protection standards, driving demand for compliant infrastructure solutions across BFSI, healthcare, retail, manufacturing, and IT/telecom sectors throughout Northern Central, Western, Eastern, and Southern regions of the Kingdom.

Saudi Arabia Data Center Services Industry Segmentation:

The report has segmented the market into the following categories:

Service Type Insights:

● Managed Hosting Services
● Colocation Service

Data Center Type Insights:

● Tier-I and II
● Tier-III
● Tier-IV

End User Industry Insights:

● BFSI
● Health Care
● Retail
● Manufacturing
● IT and Telecom
● Others

Breakup by Region:

● 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.

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Recent News and Developments in Saudi Arabia Data Center Services Market

● February 2025: DataVolt signed landmark agreements with NEOM to develop a sustainable, net-zero AI factory campus in Oxagon with an initial investment of USD 5 billion, and separately secured land lease with MODON to develop AI-ready data center facilities on 55,000 square meter plot within Riyadh's First Technology Park.

● November 2025: HUMAIN and DataVolt signed strategic partnership to build network of multi-gigawatt AI data centers across the Kingdom, marking one of the largest planned infrastructure efforts to support artificial intelligence workloads in the region.

● December 2025: HUMAIN awarded Al Moammar Information Systems contract exceeding SR 1.88 billion to design and construct private AI-focused data center with infrastructure capable of supporting up to 1 gigawatt of power capacity.

● January 2026: ICS Arabia's Desert Dragon Data Centers project advanced with first phase 65 MW Tier III facility in Riyadh scheduled for operational launch by March 2026, as part of USD 1.90 billion joint venture with China Mobile International.

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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