Saudi Arabia Data Center Server Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 -2030)

Saudi Arabia Data Center Server Market Size

Saudi Arabia Data Center Server Market Trends & Growth Drivers

Increasing Digitalization and Improving Internet Infrastructure Is Key Trend in Market

• The rise of faster and cheaper internet services has led to an increase in the number of internet users. Digital payments are becoming more popular, and social media usage is increasing significantly.
• Numerous internet exchanges have been established globally to improve connectivity between data centers.
• The internet has become essential in day-to-day life, as people have become connected globally, generating a large amount of data, which must be secured.
• Data center servers are being upgraded to enhance data processing.

Expansion of 5G Coverage, Increase in Online Purchases, and Digital Applications Propel Market

• According to Ericsson, the average mobile data usage per smartphone globally is expected to increase from 21 GB in 2023 to 56 GB in 2029.
• Mobile data traffic has increased since 2022, following the advent of 5G technology.
• In Q4 2020, 5G services were expanded in Saudi Arabia to include seven additional cities and provinces. This brings the total to 51 cities and provinces in Saudi Arabia.
• Integrating IoT into a range of consumer, healthcare, and industrial products, as well as the growth of online shopping and payments, generates significant amounts of data.
• Digital applications, such as Snapchat and YouTube, generate significant amounts of data.

Data Security Is Concern

• Significant concerns have been raised over the privacy of stored data.
• Data breaches pose a risk, resulting in the exposure, theft, or compromise of the data of internet users around the world.
• Measures should be taken to identify potential security threats and develop solutions for them.

Saudi Arabia Data Center Server Market Analysis

Type Insights

• The rack category is the largest, holding a share of 45% in 2024. This is primarily due to the ability of rack servers to meet the demands of high-tech applications.
• Rack servers are equipped with internal fans, which provide better airflow and are easier to work with, as they are more compact and integrated into racks.
• These servers are best suited when more than one server (but less than about 10) is needed because they do not require a massive chassis.
• This makes them a suitable choice for many SMEs, considering their lower installation cost.
• Tower is the fastest-growing category, advancing at a CAGR of 10.0% in the forecast years.
• Tower servers are more cost-effective for enterprises of all sizes than rack servers. These servers can cool down quickly and are easy to upgrade.
• These servers have extremely infrequent overheating issues.

The types covered in the report include:

• Rack (Largest Category)
• Tower (Fastest-Growing Category)
• Blade
• Micro

Application Insights

• BFSI is the largest category, holding a share of 35% in 2024. This is due to the growing trend of cloud-based solutions, which improve reliability, scalability, and robustness.
• In the banking industry, there is a crucial need to use, manage, and monitor bank customers’ personal and financial information for transactions, account openings, and other applications.
• Healthcare is the fastest-growing category, advancing at a CAGR of 10.3% in the forecast years.
• Since the emergence of healthcare wearables, smart bands, and watches, a large amount of data has been generated. Healthcare data is quite sensitive and should be stored with utmost security.

Geographical Analysis

Al-Riyadh dominates the market with a share of 40% in 2024. Saudi Arabia now has 24 data center servers, 14 of which are located in Riyadh, making it the largest region in terms of data center servers. Dammam is the next largest region, with five data centers.

The provinces analyzed in this report include:

• Riyadh (Largest and Fastest-Growing Region)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern region
• Aseer
• Tabuk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baba
• Al-Jouf

Saudi Arabia Data Center Server Market Share

The Saudi Arabian data center server market is consolidated in nature, as many players operate in the country. They cater to diverse applications, such as cloud storage, web hosting, artificial intelligence, and machine learning.

Several strategies are being used by the major players, such as mergers and acquisitions, partnerships, and collaborations, to expand their presence. Numerous companies are investing in R&D to expand their service portfolio, and to meet the growing demand of private and government enterprises.

Saudi Arabia Data Center Server Industry News

• In April 2022, Saudi Telecom Company (STC) signed an MoU to deliver 16 facilities with 17,000 storage units serving eight parallel sites across six cities.
• In February 2022, Saudi Telecom Company (STC) decided to separate its data center business into a new wholly owned subsidiary.