Saudi Arabia Public Cloud Market Size, Share, Trends and Forecast by Service, Enterprise Size, End Use, and Region, 2026-2034

Saudi Arabia Public Cloud Market Summary:

The Saudi Arabia public cloud market size was valued at USD 2.34 Billion in 2025 and is projected to reach USD 7.36 Billion by 2034, growing at a compound annual growth rate of 13.56% from 2026-2034.

The Saudi Arabia public cloud market is experiencing robust expansion driven by the Kingdom's ambitious digital transformation initiatives and government-led modernization programs. Growing enterprise demand for scalable computing solutions, rising adoption of artificial intelligence applications, and expanding data center infrastructure are accelerating cloud service deployment. Enhanced regulatory frameworks supporting data residency and sovereign cloud requirements are strengthening business confidence and investment across sectors.

Key Takeaways and Insights:

• By Service: Infrastructure as a Service (IaaS) dominates the market with a share of 43% in 2025, owing to its scalability, cost-efficiency, and ability to support enterprise workloads. Organizations are increasingly leveraging virtualized computing resources to enhance operational agility and reduce capital expenditure on physical infrastructure.
   
• By Enterprise Size: Large enterprises lead the market with a share of 60% in 2025. This dominance is driven by complex digital transformation requirements, substantial IT budgets, and the need for enterprise-grade security and compliance features that facilitate large-scale cloud migration initiatives.
   
• By End Use: IT and telecom represent the biggest segment with a market share of 22% in 2025, reflecting the sector's pioneering role in cloud adoption for network virtualization, service delivery platforms, and digital customer experience enhancement across the telecommunications landscape.
   
• By Region: Northern and Central Region is the largest region with 34% share in 2025, driven by the concentration of government ministries, financial institutions, and technology enterprises in Riyadh, alongside the presence of major hyperscaler data center facilities.
   
• Key Players: Key players drive the Saudi Arabia public cloud market by expanding local infrastructure, enhancing data sovereignty capabilities, and developing AI-powered service offerings. Their investments in regional data centers, workforce development programs, and strategic partnerships with government entities boost adoption, accelerate digital transformation, and ensure compliance with regulatory requirements across diverse industry verticals.

The Saudi Arabia public cloud market is advancing as enterprises and government entities increasingly embrace scalable, secure cloud computing solutions to modernize operations and enhance service delivery. Digital transformation mandates embedded within the Kingdom's economic diversification strategy are compelling organizations across sectors to migrate from legacy on-premise systems to flexible cloud architectures. The growing emphasis on artificial intelligence integration, machine learning workloads, and advanced analytics is driving demand for high-performance cloud infrastructure capable of supporting computationally intensive applications. Enhanced internet connectivity, including widespread deployment of high-speed mobile networks, is improving accessibility and reducing latency for cloud-based services. Financial institutions, healthcare providers, retailers, and manufacturers are leveraging cloud platforms to improve customer engagement, streamline operations, and gain competitive advantages. The establishment of special economic zones dedicated to cloud computing is attracting foreign investment and fostering innovation ecosystems. Rising awareness among small and medium enterprises about the cost benefits and operational efficiencies of cloud adoption is further broadening market participation and driving sustained Saudi Arabia public cloud market share expansion.

Saudi Arabia Public Cloud Market Trends:

Sovereign Cloud Adoption Gaining Momentum

Organizations across Saudi Arabia are increasingly prioritizing sovereign cloud solutions that ensure sensitive data remains within national borders and complies with local regulatory frameworks. Government entities and enterprises handling critical information are seeking cloud environments that offer enhanced data residency controls, local encryption key management, and compliance with national cybersecurity standards. This trend reflects growing awareness of data sovereignty requirements and the strategic importance of maintaining control over digital assets within the Kingdom's jurisdiction, particularly among financial services, healthcare, and public sector organizations implementing cloud-first strategies.

Integration of Artificial Intelligence and Cloud Infrastructure

The convergence of artificial intelligence capabilities with cloud platforms is transforming how enterprises deploy and consume computing resources. Organizations are leveraging AI-powered cloud services for predictive analytics, natural language processing, computer vision applications, and intelligent automation workflows. Cloud providers are embedding advanced machine learning models directly into their service offerings, enabling businesses to access sophisticated AI tools without requiring specialized infrastructure investments. This integration is accelerating innovation across industries including energy, logistics, retail, and manufacturing, contributing to Saudi Arabia public cloud market growth.

Multi-Cloud and Hybrid Deployment Strategies

Enterprises are increasingly adopting multi-cloud and hybrid deployment models to optimize performance, enhance resilience, and avoid vendor dependency. Organizations are distributing workloads across multiple cloud environments based on specific application requirements, cost considerations, and regulatory compliance needs. Hybrid architectures combining private cloud infrastructure with public cloud services enable seamless integration between on-premise systems and scalable cloud resources. This approach provides flexibility for managing sensitive workloads locally while leveraging public cloud capabilities for variable computing demands and innovation initiatives.

How Vision 2030 is Transforming the Saudi Arabia Public Cloud Market:

Vision 2030 serves as the foundational catalyst reshaping the Saudi Arabia public cloud market by embedding digital transformation as a core pillar of national economic diversification. The ambitious strategic framework mandates cloud-first approaches for government IT investments, compelling ministries and public sector entities to migrate legacy systems to modern cloud architectures. This policy-driven adoption creates substantial foundational demand while establishing precedents that accelerate private sector cloud migration. The initiative prioritizes developing domestic digital infrastructure, attracting global hyperscalers to establish local data centers, and nurturing homegrown technology capabilities. Regulatory frameworks supporting data sovereignty and cybersecurity have emerged alongside dedicated special economic zones for cloud computing, fostering innovation ecosystems. Workforce development programs aligned with Vision 2030 objectives are addressing talent gaps by training professionals in cloud technologies. The comprehensive approach ensures sustained government commitment, policy stability, and investment prioritization that collectively position cloud computing as essential infrastructure for achieving economic transformation goals across all sectors of the Kingdom.

Market Outlook 2026-2034:

The Saudi Arabia public cloud market outlook remains highly favorable as digital transformation initiatives continue accelerating across public and private sectors. Government policies promoting cloud-first approaches for IT investments are establishing strong foundational demand from ministries and agencies. Enterprise adoption is expected to intensify as organizations seek competitive advantages through advanced cloud services encompassing artificial intelligence, big data analytics, and Internet of Things platforms. The market generated a revenue of USD 2.34 Billion in 2025 and is projected to reach a revenue of USD 7.36 Billion by 2034, growing at a compound annual growth rate of 13.56% from 2026-2034. Expanding hyperscaler presence through new regional data centers will enhance service availability and reduce latency. Growing investments in smart city infrastructure, healthcare digitization, and financial technology innovation will create sustained demand for scalable cloud solutions throughout the forecast period.

Saudi Arabia Public Cloud Market Report Segmentation:

Service Insights:

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• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

Infrastructure as a Service (IaaS) dominates with a market share of 43% of the total Saudi Arabia public cloud market in 2025.

Infrastructure as a Service (IaaS) represents the foundational layer of cloud computing, providing organizations with virtualized computing resources including servers, storage, and networking capabilities delivered on-demand over the internet. Enterprises across Saudi Arabia are increasingly adopting IaaS solutions to eliminate the substantial capital expenditure associated with maintaining physical data center infrastructure. In March 2024, Amazon Web Services announced plans to invest over USD 5.3 Billion to establish a new infrastructure region in Saudi Arabia, scheduled for launch in 2026, demonstrating the significant demand for locally hosted IaaS capabilities.

The growing preference for IaaS solutions reflects organizational priorities around operational flexibility, disaster recovery capabilities, and the ability to rapidly scale computing resources based on fluctuating workload demands. Government entities and large enterprises are leveraging IaaS platforms to support digital transformation initiatives, artificial intelligence deployments, and big data analytics applications. The availability of multiple hyperscaler cloud regions within the Kingdom enables organizations to maintain data residency compliance while accessing enterprise-grade infrastructure services with enhanced security and reliability features.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises

Large enterprises lead with a share of 60% of the total Saudi Arabia public cloud market in 2025.

Large enterprises constitute the dominant force in cloud adoption, driven by their complex digital transformation requirements, substantial IT budgets, and need for enterprise-grade security and compliance capabilities. Major corporations, government ministries, and multinational organizations operating in Saudi Arabia are systematically migrating mission-critical workloads to cloud environments. Leading global technology providers have established local data center presence within the Kingdom, reflecting substantial enterprise demand for locally available cloud services that meet data residency requirements. These organizations require scalable infrastructure capable of supporting geographically distributed operations and workforce collaboration across multiple locations.

The preference of large enterprises for public cloud services stems from strategic imperatives including enhanced business agility, improved collaboration capabilities, and access to cutting-edge technologies. Organizations in banking, telecommunications, energy, and healthcare sectors are leveraging cloud platforms to modernize legacy applications, implement advanced analytics solutions, and enhance customer experience initiatives. Enterprise cloud adoption is further accelerated by the availability of hybrid deployment options that enable seamless integration between on-premise infrastructure and public cloud resources while maintaining governance and compliance requirements. The growing emphasis on artificial intelligence and machine learning capabilities is further driving enterprise investments in advanced cloud solutions.

End Use Insights:

• BFSI
• IT and Telecom
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Healthcare
• Media and Entertainment
• Government and Public Sector
• Others

IT and Telecom exhibit a clear dominance with a 22% share of the total Saudi Arabia public cloud market in 2025.

The IT and telecommunications sector maintains leadership in cloud adoption, leveraging public cloud services to enhance network virtualization, optimize service delivery platforms, and support the proliferation of digital services. Telecom operators are increasingly migrating core network functions to cloud environments, enabling greater operational efficiency and faster deployment of innovative services. In February 2025, stc Group announced a strategic collaboration with Amazon Web Services to accelerate cloud adoption and artificial intelligence-driven innovation across healthcare, finance, education, and government sectors.

Telecommunications companies are utilizing cloud infrastructure to support the deployment of next-generation mobile networks and associated edge computing capabilities. The sector's cloud consumption encompasses a wide range of services including content delivery networks, real-time communications platforms, customer relationship management systems, and advanced analytics solutions. Growing demand for streaming services, mobile applications, and digital entertainment is driving telecommunications providers to expand their cloud infrastructure investments to ensure service quality and scalability during peak usage periods. The convergence of telecommunications and cloud technologies is creating new revenue opportunities while enabling operators to deliver enhanced connectivity solutions across the Kingdom.

Regional Insights:

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

Northern and Central Region represents the leading segment with a 34% share of the total Saudi Arabia public cloud market in 2025.

The Northern and Central Region, anchored by the capital city Riyadh, dominates the Saudi Arabia public cloud market due to the concentration of government ministries, financial institutions, and major corporate headquarters. The region benefits from superior digital infrastructure, including multiple hyperscaler data center facilities and the Cloud Computing Special Economic Zone inaugurated in April 2023 to attract technology investments. Oracle launched its second cloud region in Riyadh in 2024, complementing its existing Jeddah region and enabling enterprises to access locally hosted cloud services with enhanced compliance capabilities.

Riyadh's position as the Kingdom's economic and administrative center ensures sustained cloud demand from diverse sectors including government services, banking, telecommunications, and professional services. The region's advanced telecommunications infrastructure, characterized by extensive high-speed connectivity and leading mobile network coverage, facilitates seamless cloud service delivery. Ongoing development of technology parks and innovation districts within the region is attracting cloud-native enterprises and fostering an ecosystem conducive to continued public cloud market expansion throughout the forecast period.

Market Dynamics:

Growth Drivers:

Why is the Saudi Arabia Public Cloud Market Growing?

Government-Led Digital Transformation Initiatives

The Saudi Arabia public cloud market is experiencing substantial growth due to comprehensive government programs prioritizing digital transformation across all sectors of the economy. National strategies emphasizing cloud-first approaches for government IT investments are establishing robust foundational demand and setting precedents for private sector adoption. Public sector entities are systematically migrating services to cloud platforms to enhance citizen engagement, improve operational efficiency, and reduce infrastructure maintenance costs. The establishment of dedicated regulatory frameworks governing cloud computing has created clarity for both service providers and enterprise customers regarding compliance requirements and data handling protocols. Government cloud adoption spans diverse applications including e-government services, digital identity management, healthcare information systems, and educational platforms. Strategic investments in developing local cloud infrastructure are attracting global technology providers while simultaneously nurturing domestic capabilities. The alignment of cloud adoption with broader economic diversification objectives ensures sustained policy support and investment prioritization for digital infrastructure development throughout the Kingdom.

Expansion of Hyperscaler Infrastructure and Local Data Centers

The proliferation of major cloud provider infrastructure within Saudi Arabia is significantly accelerating market growth by addressing critical enterprise requirements around data residency, latency, and regulatory compliance. Global hyperscalers are committing substantial investments to establish cloud regions and data center facilities across the Kingdom, recognizing the strategic importance and growth potential of the Saudi market. The availability of locally hosted cloud services enables organizations to maintain sensitive data within national boundaries while accessing enterprise-grade computing resources and advanced service capabilities. Multiple cloud regions distributed across different geographic locations within the country provide enhanced disaster recovery options and improved service reliability. The competitive dynamics among major providers are driving innovation in service offerings, pricing optimization, and customer support capabilities. Local data center presence also facilitates more effective engagement with government customers and regulated industries that require stringent data sovereignty assurances. The infrastructure expansion creates a virtuous cycle attracting additional enterprises to cloud adoption while encouraging further provider investment.

Rising Enterprise Demand for Artificial Intelligence and Advanced Analytics

Organizations across Saudi Arabia are increasingly leveraging public cloud platforms to access sophisticated artificial intelligence, machine learning, and advanced analytics capabilities that would be prohibitively expensive or technically challenging to develop internally. Cloud-based AI services enable enterprises to implement predictive maintenance solutions, customer behavior analytics, fraud detection systems, and intelligent automation workflows without substantial upfront infrastructure investments. The national focus on establishing leadership in artificial intelligence is driving substantial investment in cloud infrastructure capable of supporting computationally intensive AI workloads including large language model training and inference. Enterprises in energy, financial services, healthcare, and retail sectors are deploying AI-powered applications to enhance operational efficiency, improve customer experiences, and gain competitive advantages. Cloud platforms provide the scalability necessary to handle variable AI workload demands while offering access to continuously updated algorithms and pre-trained models. The integration of generative AI capabilities into cloud service offerings is creating new use cases and accelerating enterprise adoption across industries seeking to harness emerging technologies for business transformation.

Market Restraints:

What Challenges the Saudi Arabia Public Cloud Market is Facing?

Data Sovereignty and Regulatory Compliance Complexities

Organizations face significant challenges navigating complex data sovereignty requirements and evolving regulatory frameworks governing cloud computing in Saudi Arabia. Enterprises handling sensitive information must ensure compliance with national cybersecurity standards, data localization mandates, and sector-specific regulations. The complexity of maintaining compliance across multiple regulatory domains creates operational overhead and may delay cloud migration initiatives for risk-averse organizations. Uncertainty regarding future regulatory developments can complicate long-term cloud strategy planning.

Shortage of Skilled Cloud Computing Professionals

The Saudi Arabia public cloud market faces constraints due to a significant shortage of professionals with specialized cloud computing expertise including architecture design, security implementation, and DevOps practices. Organizations struggle to recruit and retain talent capable of effectively managing cloud environments, optimizing resource utilization, and ensuring security compliance. The talent gap necessitates reliance on external consultants and managed services, increasing operational costs and potentially slowing the pace of cloud adoption among enterprises lacking internal technical capabilities.

Security Concerns and Cybersecurity Risks

Persistent concerns regarding data security, privacy protection, and cybersecurity vulnerabilities continue to restrain cloud adoption among certain enterprise segments. Organizations remain cautious about entrusting sensitive business information and customer data to external cloud environments despite security assurances from providers. The evolving threat landscape and increasing sophistication of cyberattacks create ongoing anxiety about potential data breaches, service disruptions, and reputational damage. Industries handling highly confidential information may prefer maintaining on-premise infrastructure for critical workloads.

Competitive Landscape:

The Saudi Arabia public cloud market is characterized by intensifying competition among global hyperscalers, regional service providers, and emerging local players seeking to capture market share in the Kingdom's rapidly expanding cloud ecosystem. Competitive differentiation increasingly centers on local infrastructure presence, data sovereignty capabilities, Arabic language support, and alignment with national digital transformation objectives. Service providers are investing substantially in regional data centers, workforce development programs, and strategic partnerships with government entities and major enterprises. The competitive landscape features collaboration between global technology leaders and local telecommunications companies to deliver integrated cloud solutions tailored to Saudi market requirements. Innovation in artificial intelligence services, industry-specific solutions, and managed service offerings represents key battlegrounds for competitive positioning. Pricing strategies, service level agreements, and customer support quality significantly influence enterprise vendor selection decisions. The market structure continues evolving as new entrants establish local presence and existing players expand service portfolios.

Saudi Arabia Public Cloud Market Report Coverage: