Saudi Arabia’s data and artificial intelligence authority, SDAIA, has recently made significant strides in expanding data center projects in Riyadh, the capital city of the Kingdom. Dr. Abdullah Al-Ghamdi, the President of SDAIA, unveiled a series of new technical infrastructure projects and data centers during a recent event attended by various leaders and officials from the organization.
These new data centers, described as the first of their kind in Saudi Arabia, boast an impressive electrical capacity of up to 65 kilowatts per cabin. While the exact number of new data centers or the total capacity being developed remains unknown, the initiatives are aimed at bolstering the capacity and efficiency of data centers throughout the Kingdom.
The overarching goal of these projects aligns with SDAIA’s strategy to establish sustainable data centers that meet global standards set by the UPTIME Institute. This institute is renowned for its evaluation and classification of data centers, ensuring that the facilities adhere to best practices in the industry.
As of 2023, Saudi Arabia has emerged as the fastest-growing data center market in the MENA region, with nearly twenty data centers already in operation. Major global and regional players like Gulf Data Hub, GO Datacenter, NourNET, and Mobily have established a presence in the country, contributing to the market’s rapid expansion.
The surge in investments by technology giants such as Oracle, Google, Microsoft, and Huawei in 2023 has further fueled the growth of Saudi Arabia’s data center market. This trend is supported by the government’s digital initiatives under Saudi Vision 2030, a comprehensive plan aimed at diversifying the economy, attracting foreign investments, and developing cutting-edge infrastructure in key business and leisure hubs.
Additionally, Saudi Arabia’s Cloud First policy underscores the country’s commitment to embracing cloud technologies and driving digital transformation across various sectors. These efforts have positioned the Kingdom as a hub for innovation and technological advancement in the region.
Looking ahead, market research indicates a promising outlook for the Saudi Arabia Data Center Market, with an estimated size of 345.31 MW in 2024. By 2029, this figure is projected to reach 854.81 MW, reflecting a compound annual growth rate of 19.88% during the forecast period. This forecast underscores the continued expansion and evolution of the data center industry in Saudi Arabia, driven by ongoing investments and strategic initiatives aimed at fostering a robust digital infrastructure.
