Saudi Arabia: According to Arizton Advisory & Intelligence, Saudi Arabia data center market was valued at $2.08 B in 2025 and is expected to reach $6.17 B by 2031, growing at a CAGR of 19.84 %. The market is entering a strong growth phase, supported by rising demand for hyperscale facilities, cloud services, and AI infrastructure.
Sustainability is becoming a key investment driver. Operators are focusing on low-carbon solutions, including renewable energy use, liquid cooling systems, and a gradual move away from diesel generators towards HVO alternatives.
This transition is supported by broader energy changes, with renewables making up around 5 % of Saudi Arabia’s electricity generation in 2024, largely driven by solar and wind power.
At the same time, demand for AI-ready infrastructure is rising quickly. New facilities are being designed for high-performance computing, including GPU clusters, high-density racks, and advanced cooling systems. In December 2025, center3 and HUMAIN signed an MoU to develop AI-focused data centres, starting with around 250 MW and scaling beyond 1 GW.
While Dammam remains a leading hub due to strong fibre connectivity, reliable power, and its location near key industrial areas, demand is now spreading across the country. Cities including Riyadh, Jeddah, NEOM, Makkah, Madinah, Al Qassim, and Al Ahsa are increasingly attracting new projects, signalling a shift towards a more distributed national digital infrastructure.
Overall, Saudi Arabia’s digital transformation is moving from planning to execution, driven by Vision 2030 and growing investments in cloud, IoT, and AI, strengthening its position as a key regional digital infrastructure market.
The key IT infrastructure providers include NVIDIA, Microsoft, Amazon Web Services, Google, Equinix, Schneider Electric, Cisco, Hewlett Packard Enterprise, Dell Technologies, and Huawei Technologies, among others.
Source: Open PR
