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 was valued at 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-powered cooling optimization systems analyze thousands of sensor readings every five minutes in Saudi data centers, dynamically adjusting temperature controls and reducing cooling energy consumption through predictive algorithms that anticipate thermal loads before they materialize.
- Machine learning models enable predictive maintenance by continuously monitoring equipment performance data, detecting subtle wear patterns and anomalies weeks before failures occur, reducing unplanned downtime and extending infrastructure lifespan across Saudi facilities.
- Deep learning algorithms optimize workload distribution and resource allocation in real-time, analyzing usage patterns to consolidate computing tasks efficiently, minimizing energy waste while maximizing data center capacity utilization and performance.
- AI-driven energy management platforms forecast power consumption with remarkable accuracy by processing historical usage data and environmental conditions, enabling Saudi operators to plan capacity efficiently, reduce grid strain during peak periods, and lower operational costs significantly.
- Intelligent automation systems leverage neural networks to create self-healing data center environments, automatically diagnosing infrastructure issues, implementing corrective actions without human intervention, and ensuring continuous service reliability across mission-critical operations.
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How Vision 2030 is Transforming Saudi Arabia Data Center Services Industry
Saudi Arabia’s Vision 2030 is revolutionizing the data center services industry by prioritizing digital transformation, AI infrastructure development, and technological leadership amid economic diversification goals. The initiative drives demand for hyperscale data centers, cloud services, and AI-ready facilities, integrating cutting-edge technologies to position the Kingdom as a regional digital hub. This transformation aligns with the Saudi Data and Artificial Intelligence Authority’s National Strategy aiming to place the Kingdom among top global AI nations by 2030, with over USD 14.9 billion in AI investments announced at LEAP 2025 technology conference in Riyadh. Government investments through the Public Investment Fund establishing a USD 40 billion AI fund in 2024, potentially partnering with venture capital firms like Andreessen Horowitz, demonstrate unprecedented state-sponsored commitment to AI infrastructure. The PIF’s USD 100 billion semiconductor fund further signals the Kingdom’s resolve to build a robust technological ecosystem supporting data center expansion. Strategic initiatives including Humain, the PIF-owned AI firm targeting 6.6 gigawatts of data center capacity by 2034 with ambitions to become the world’s third-largest AI provider, create continuous demand for sophisticated data center services. In February 2025, DataVolt and NEOM signed a landmark agreement for USD 5 billion initial investment developing a fully sustainable AI data center with 1.5-gigawatt capacity in Oxagon, operational by 2028 and powered entirely by renewable energy. Major hyperscaler investments from Google (partnership with PIF for USD 10 billion AI hub in May 2025), Microsoft (USD 60 billion global AI and cloud infrastructure including Eastern Province facilities launching 2026), AWS (new Saudi cloud region launching 2026), and Oracle (Riyadh region 2024) establish the Kingdom as essential infrastructure. As of 2025, Saudi Arabia hosts 33 existing data centers with 42 additional facilities under development, collectively projected to add approximately 2.2 gigawatts IT load capacity. Ultimately, Vision 2030 elevates the data center services sector as foundational infrastructure for digital economy transformation, supporting the market’s projected growth from USD 1.33 billion in 2024 to USD 3.9 billion by 2030 and positioning Saudi Arabia as the Middle East’s premier technology hub.
Saudi Arabia Data Center Services Market Trends & Drivers:
Saudi Arabia’s data center services market is experiencing robust growth, driven by significant investments in artificial intelligence and data center infrastructure establishing the Kingdom as a regional technological hub. In 2025, Saudi firm DataVolt invested USD 5 billion to build a fully sustainable AI data center with 1.5-gigawatt capacity in NEOM, aligned with Vision 2030’s economic diversification plan. The Saudi Public Investment Fund announced a USD 40 billion AI fund potentially partnering with venture capital firms, representing one of the world’s largest state-sponsored programs in the AI sector. The PIF’s USD 100 billion semiconductor fund demonstrates the Kingdom’s resolve to build a robust technological ecosystem, with capital flow in AI and data center projects spurring digital infrastructure development. Data center projects in Riyadh and NEOM alone account for nearly 70% of total upcoming data center capacity in Saudi Arabia, with significant rise in big data center projects such as Oxagon NEOM and Pure Data Centres indicating shift toward large-scale cloud and hosting infrastructure. As of Q1 2025, Saudi Arabia had an estimated total IT power capacity of 222 MW, with plans to add an additional 760 MW by 2030, representing 29% compound annual growth rate through the forecast period. Humain, the PIF-owned firm, coordinates major AI infrastructure projects targeting 6% of the world’s AI workload, with planned data centers near Riyadh and Dammam potentially delivering 6.6 gigawatts capacity by 2034.
The expansion of cloud services and hyperscale data centers is significantly boosting market demand. Google, in partnership with Aramco, launched a cloud and data center region in Saudi Arabia in November 2023, providing local businesses easier access to advanced cloud facilities with scalability and innovation capabilities. Saudi Arabia’s data center industry was worth approximately USD 2.1 billion in 2024 and is expected to grow to USD 7.7 billion by 2033, representing growth rate of approximately 15.6% annually. The market expansion is supported by encouraging government regulations including reduced electricity bills for cloud computing firms at 4.8 cents per kilowatt-hour intended to stimulate investment. In November 2024, ICS Arabia officially commenced construction on the Desert Dragon data center through joint venture with China Mobile International and Shanghai-based Lumaotong Group, representing USD 1.90 billion investment with total capacity of 187 MW across Riyadh, Jeddah, Dammam, and NEOM. The first phase, a 65 MW Tier III data center in Riyadh, is expected operational by March 2026, with the second phase, a 50 MW facility in Jeddah, beginning construction February 2025 with completion in late 2026. Microsoft announced plans for USD 60 billion global investment in AI and cloud infrastructure in 2024, with data centers in Saudi Arabia’s Eastern Province launching 2026. AWS announced plans to build a new Saudi cloud region scheduled to launch 2026, providing cloud services to businesses and government agencies locally.
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.
Recent News and Developments in Saudi Arabia Data Center Services Market
- February 2025: DataVolt and NEOM signed a landmark agreement to develop a large-scale sustainable data center in Oxagon northwest Saudi Arabia, with phase one funded by initial investment expected operational by 2028, marking significant milestone in expanding the Kingdom’s digital infrastructure as regional data hub.
- July 2024: Saudi Data and Artificial Intelligence Authority announced new data center project in Riyadh, designed to improve operational efficacy and capacity of data centers across the region, supporting Vision 2030 digital transformation objectives and AI infrastructure development throughout the Kingdom.
- October 2024: DataVolt data center developer partnered with Center3 to sign a memorandum of understanding for collaboration on data center maintenance and operations in Saudi Arabia, combining resources and knowledge to improve how data centers are run and enhance service delivery capabilities.
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