Saudi Arabia Data Center Market Investment Analysis Report 2026-2031 Featuring Alibaba, DAMAC Digital, Google, Gulf Data Hub, Mobily, Oracle, Quantum Switch, Sahayeb Data Centers, center3, TONOMUS
Dublin, March 11, 2026 (GLOBE NEWSWIRE) -- The "Saudi Arabia Data Center Market - Investment Analysis & Growth Opportunities 2026-2031" report has been added to ResearchAndMarkets.com's offering.
The Saudi Arabia Data Center Market was valued at USD 2.08 Billion in 2025, and is projected to reach USD 6.16 Billion by 2031, rising at a CAGR of 19.84%
This report analyses the Saudi Arabia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, cooling systems, general construction, and Tier standards. It discusses market sizing and investment estimation for different segments.
Saudi Arabia consists of approximately 40 operational colocation data centers, of which 10 facilities are located in Dammam alone. Most of the data center facilities in Saudi Arabia have been designed to meet Tier III standards of the Uptime Institute. The Kingdom is witnessing the development of around 27 colocation data centers, which are either in the planning or under construction stages.
Saudi Arabia's National Data Center Strategy aims to increase the nation's data center capacity by 1.5 GW by 2030 to strengthen the Kingdom's digital infrastructure and position Saudi Arabia as one of the prominent digital hubs in the Middle East region.
The data center operations in Saudi Arabia are regulated by Communications, Space, and Technology Commission (CST) by requiring data center companies to register their services with CST, comply with defined technical standards for power, cooling, and security maintenance, ensure continuous service availability through redundancy and disaster recovery planning, establish strong data protection measures to support secure and reliable data center operations, aligning with Vision 2030
The investments for the development of Artificial Intelligence (AI) ready data centers in expected to increase significantly in Saudi Arabia in the forthcoming years owing to the rapid surge in demand for processing artificial intelligence workloads. For instance, in December 2025, center3, a subsidiary of stc signed a Memorandum of Understanding with HUMAIN to develop multiple AI-ready data centers across Saudi Arabia.
Initially, the companies have planned to add around 250 MW of data center capacity in Saudi Arabia, which will be increased to over 1 GW in the forthcoming years. The demand for AI-ready data centers, which are equipped with clusters of Graphics Processing Units (GPUs), liquid cooling technologies, high-density racks, and increased power capacities, is expected to rise significantly over the next five years.
Several enterprises across diverse sectors in Saudi Arabia are transitioning towards cloud platforms by prioritizing to host their IT infrastructure and workloads in cloud platforms. For example, in October 2025, Saudi Awwal Bank revealed its plan to migrate the company's procurement processes to SAP Business Network, a cloud-based trading platform, to enhance Saudi Awwal Bank's operational efficiency. The surge in enterprise cloud migration is expected to increase significantly during the forecast period.
SAUDI ARABIA DATA CENTER MARKET VENDOR LANDSCAPE
WHY SHOULD YOU BUY THIS RESEARCH?
KEY QUESTIONS ANSWERED
Key Attributes:
INVESTMENT OPPORTUNITIES
VENDOR LANDSCAPE
IT Infrastructure Providers
Data Center Construction Contractors & Sub-Contractors
Support Infrastructure Providers
Data Center Investors
NEW ENTRANTS
EXISTING VS. UPCOMING DATA CENTERS
Existing Facilities in the region (Area and Power Capacity)
List of Upcoming Facilities in the region (Area and Power Capacity)
REPORT COVERAGE
IT Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
General Construction
Tier Standard
Geography
For more information about this report visit https://www.researchandmarkets.com/r/3ocx99
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