The Saudi Arabia data center services market size reached USD 1.67 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.35 Billion by 2033, exhibiting a growth rate (CAGR) of 14.82% during 2025-2033. Rising cloud adoption, increasing digital transformation, government initiatives like Vision 2030, growing demand for colocation services, hyperscale investments, strong 5G rollout, cybersecurity needs, and smart city projects are driving the growth of Saudi Arabia's data center services market.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 1.67 Billion |
Market Forecast in 2033 | USD 6.35 Billion |
Market Growth Rate (2025-2033) | 14.82% |
Significant Investments in Artificial Intelligence (AI) and Data Center Infrastructure
Saudi Arabia's significant investment in artificial intelligence and data center infrastructure helps boost its economy and establish itself as a regional technological hub. In 2025, Saudi firm DataVolt invested $5 billion to build a fully sustainable AI data center with a 1.5-gigawatt capacity in the futuristic city of NEOM. This initiative is aligned with the kingdom's Vision 2030 plan, which aims to diversify oil revenues through the advancement of technological advancements. The Saudi Public Investment Fund (PIF) also stated it would set up a $40 billion AI fund that might partner with venture capital companies like Andreessen Horowitz. The fund is one of the biggest state-sponsored programs globally in the AI sector. In addition, the PIF announced a $100 billion semiconductor fund, indicating the kingdom's resolve to build a robust technological ecosystem. The investments are expected to propel the data center services market in Saudi Arabia to a significant extent. The capital flow in AI and data center projects is expected to spur the country's digital infrastructure, attract international technology firms to the nation, and create an ecosystem that will foster innovation and technological growth.
Expansion of Cloud Services and Hyperscale Data Centers
The demand for cloud services in Saudi Arabia is rising rapidly, fueled by digital transformation initiatives across multiple industries. To meet this demand, hyperscale data centers in the kingdom are being invested in by global technology leaders. For instance, Google, in partnership with Aramco, launched a cloud and data center region in Saudi Arabia in November 2023. This investment provides local businesses with easier access to advanced cloud facilities, with scalability and innovation being simpler. Saudi Arabia's data center industry was worth around $2.1 billion in 2024 and is expected to grow to $7.7 billion by 2033. This represents a growth rate of about 15.6% annually between 2025 and 2033. It's also supported by encouraging government regulations such as reduced electricity bills for cloud computing firms at 4.8 cents per kilowatt-hour intended to stimulate investment in data centers and cloud computing services. The expansion in cloud services and hyperscale data centers not only reinforces the country's digital infrastructure but is also attracting global tech giants to establish operations in the country. This will continue, making Saudi Arabia a serious player in the global market for data center services.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on service type, data center type, and end user industry.
Service Type Insights:
The report has provided a detailed breakup and analysis of the market based on the service type. This includes managed hosting service and colocation service.
Data Center Type Insights:
A detailed breakup and analysis of the market based on the data center type have also been provided in the report. This includes tier-I and II, tier-III, and tier-IV.
End User Industry Insights:
The report has provided a detailed breakup and analysis of the market based on the end user industry. This includes BFSI, health care, retail, manufacturing, IT and telecom, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Service Types Covered | Managed Hosting Service, Colocation Service |
Data Center Types Covered | Tier-I and II, Tier-III, Tier-IV |
End User Industries Covered | BFSI, Health Care, Retail, Manufacturing, IT and Telecom, Others |
Regions Covered | Northern and Central Region, Western Region, Eastern Region, Southern Region |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: