| Study Period | 2019 - 2032 |
| Market Size in 2024 | USD 1.6 Billion |
| Market Size in 2025 | USD 1.8 Billion |
| Market Size by 2032 | USD 5.3 Billion |
| Projected CAGR | 16.3% |
| Largest Region | Northern & Central |
| Fastest Growing Region | Eastern |
| Market Structure | Fragmented |
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The Saudi Arabian data center market size was worth USD 1.6 billion in 2024, and it will grow by 16.3% during 2025–2032, to reach USD 5.3 billion by 2032.
The market growth is primarily ascribed to the kingdom's digital transformation initiative under Vision 2030 to minimize economic dependence. The funding of USD 18 billion by the Saudi government aims to create 1,300 MW of large data capacity by 2030. Additionally, the reduced power tariffs for cloud platform providers, increasing uptake of digital technologies in sectors such as banking and healthcare, and the rising investment in cloud services, AI ecosystem, and hyperscale data centers further fuel the market growth.
The NEOM and LEAP Riyadh are increasing the need for data infrastructure to support digital information and smart technologies. These strategies revolve around smart cities and depend on advanced digital systems, which creates a strong demand for secure data storage and optimized processing capabilities. Furthermore, global companies, such as Google and ASW, are expanding their presence in the kingdom.
The colocation category held the largest market share, of 30%, in 2024, as it helps businesses rent facilities from third parties, thus minimizing capital investment and process inefficiencies. These facilities create affordable, adaptable, and trusted data center solutions.
The cloud/hyperscale category will have the highest CAGR, of 17%, due to The rising demand for cloud services, AI, and advanced data analysis. These facilities are made to manage a large volume of data efficiently.
The data center types analyzed in this report are:
The IT infrastructure category held the largest market share, of 45%, in 2024, due to the rising demand for storage, servers, and telecommunication equipment. The nation's digital transformation initiatives under Vision 2030 drive the number of initiatives revolving around AI and cloud computing. Businesses are shifting their existing on-premises resources to well-equipped data centers to enable better data management, as data analysis has become central to business growth as well as public good. In this regard, the concerns related to the efficient storage and privacy of data continue to propel the setup of IT infrastructure.
The mechanical infrastructure category will have the highest CAGR, of 17.5%. This is because large data centers need an effective cooling system to remove massive amounts of heat continuously. These cooling systems also help reduce utility costs and support clean energy goals.
The infrastructures analyzed in this report are:
The IT & telecom category held the largest market share, of 35%, in 2024, due to the rising usage of cloud services and other digital technologies across industries. The development of smart cities under Vision 2030 increases the growth potential of this sector. Additionally, the rising investments by global companies in the IT infrastructure of the kingdom drive this category.
The BFSI category will have the greatest CAGR, of 17.8%, because of the growing demand for digital services in banking areas. Riyad Bank has implemented cloud-based approaches in its operations of late. The government initiatives for digital transformation increase competitiveness and process efficiencies in smart data center infrastructure. Additionally, the development of fintech services drives the market growth.
The end users analyzed in this report are:
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The Northern & Central region held the largest market share, of 45%, in 2024, because Riyadh houses major industries, such as telecommunications and government services. Moreover, the high economic growth rate, technological infrastructure, and various strong government initiatives under Vision 2030 propel market growth in this region.
The Eastern region will have the highest CAGR, of 18%, due to its strategic location near subsea cable routes, which boosts international data transmission. Additionally, the growing expenditure in renewable energy and investment hubs under Vision 2030 propel the regional data center market.
The regions analyzed in this report are:
The market is fragmented in nature owing to many local and international players providing various products and services. These facilities require distinct products, such as servers, storage systems, network switches, computers, HVAC systems, access control systems, fire alarms, and CCTVs, apart from general construction services. Most companies specialize in a single aspect of data center deployment, which prohibits any one from holding a major share.
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