Saudi Arabia Data Center Services Market

Saudi Arabia Data Center Services Market Overview:

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.

Saudi Arabia Data Center Services Market Trends:

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.

Saudi Arabia Data Center Services Market Segmentation:

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:

• Managed Hosting Services
• Colocation Service

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:

• Tier-I and II
• Tier-III
• Tier-IV

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:

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

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:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

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.

Competitive Landscape:

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.

Saudi Arabia Data Center Services Market News:

• October 2024: DataVolt, a data center developer in Saudi Arabia, teamed up with Center3 to sign a memorandum of understanding (MoU). They plan to work together on data center maintenance and operations in Saudi Arabia. By combining their resources and knowledge, they aim to improve how data centers are run.
• July 2024: Saudi Data and Artificial Intelligence Authority (SDAIA) announced a new data center project in Riyadh. These projects are designed to improve the operational efficacy as well as the capacity of data centers across the region.

Saudi Arabia Data Center Services Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia data center services market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia data center services market on the basis of service type?
• What is the breakup of the Saudi Arabia data center services market on the basis of data center type?
• What is the breakup of the Saudi Arabia data center services market on the basis of end user industry?
• What are the various stages in the value chain of the Saudi Arabia data center services market? 
• What are the key driving factors and challenges in the Saudi Arabia data center services market?
• What is the structure of the Saudi Arabia data center services market and who are the key players?
• What is the degree of competition in the Saudi Arabia data center services market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia data center services market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia data center services market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia data center services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.