Saudi Arabia Cloud Services Market Poised for Explosive Growth to USD 13.9 Billion by 2034 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

● With AI reshaping everything, Saudi cloud services see big boosts from over five billion dollars invested in an AI zone by AWS and HUMAIN partners.

● Government programs are easing cloud use for AI applications by training more than one hundred thousand public sector staff in essential cloud and AI skills.

● Companies like STC are partnering with AWS to deliver cutting-edge cloud and AI services in sectors from healthcare to finance and energy.

● The launch of impressive projects like the Hexagon data center, the world's largest Tier Four government facility, is elevating Saudi cloud capabilities for AI workloads.

● Cloud-focused special economic zones attract top global players, featuring Google's Dammam region and Microsoft's local cloud services to boost AI innovation across the kingdom.

Saudi Arabia Cloud Services Market Trends & Drivers:

One major force behind the Saudi cloud services market right now is the government's push to digitize the economy under Vision 2030, backed by clear policies and real money on the table. The national Cloud First Policy requires government entities to prefer cloud solutions, which has triggered large scale migrations across ministries, healthcare, education and municipal services. Trade sources indicate that public cloud spending in the Kingdom is already in the billions of dollars, supported by a dedicated Cloud Computing Special Economic Zone that offers incentives to global providers and local players. On the ground, this shows up in cloud based citizen services, digital identity, e health platforms and smart city control rooms, all of which need reliable local cloud infrastructure. For vendors, this policy backbone reduces risk and creates a predictable, fast growing demand pipeline.

Another big driver is the surge in hyperscale and telecom led cloud investments that are turning Saudi Arabia into a regional cloud hub rather than just a consumer market. Global providers like AWS, Google Cloud, Microsoft, Oracle, Alibaba Cloud and Huawei Cloud are all building or expanding local regions and data centers, with one AWS plan alone tied to more than 5 billion dollars of investment in Saudi infrastructure and AI capacity. These players are partnering with national champions such as stc to roll out edge locations, hybrid cloud offerings and sector specific solutions for finance, energy and government. At the same time, domestic data center spending has crossed the billion dollar mark, supported by strict data localization rules and rising expectations for low latency digital services. This investment wave is locking in long term cloud capacity and drawing in regional SaaS and platform providers.

The third factor is the rapid adoption of cloud for AI, IoT and data heavy applications across sectors that want to move faster without building huge in house IT. Recent industry reports note that around three out of four Saudi enterprises are either already on the cloud or actively migrating, with financial services, healthcare and e commerce among the most intensive users. Data usage in the Kingdom is expected to reach tens of exabytes, fueled by smart city projects, connected industry and millions of IoT devices, which simply cannot be handled efficiently without scalable cloud backends and edge computing. Government programs like Monsha'at and Fintech Saudi are nudging SMEs to use SaaS for core functions such as CRM, HR and accounting, lowering barriers to sophisticated digital tools. In parallel, cloud providers are embedding AI and analytics capabilities into their platforms, giving Saudi organizations a straight path into use cases like predictive maintenance, personalized banking and real time logistics optimization.

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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

● February 2026: Microsoft confirms its Saudi Arabia East Azure region featuring three availability zones with independent power, cooling, and networking for secure low-latency cloud and AI workloads.

● February 2026: NEOM teams with DataVolt on a five-billion-dollar hyperscale data center delivering 1.5 gigawatt renewable-powered capacity and advanced cooling for high-density AI computing.

● February 2026: HUMAIN invests three billion dollars in xAI to develop a 500-megawatt AI data center and deploy Grok models strengthening local cloud and high-performance infrastructure.

● January 2026: Google Cloud opens a new region in Dammam, focusing on low-latency workloads and data sovereignty, aligning with the Cloud First Policy to accelerate enterprise cloud migration and secure sensitive data.

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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This release was published on openPR.