Saudi Arabia Data Center Construction Market Overview

Market Size in 2024 : USD 226 Million

Market Size in 2033: USD 1,311 Million

Market Growth Rate 2025-2033: 21.6%

According to IMARC Group's latest research publication,"Saudi Arabia Data Center Construction Market Report by Construction Type (Electrical Construction, Mechanical Construction), Data Center Type (Small-Scale Data Center, Medium-Scale Data Center, Large-Scale Data Center), Tier Standards (Tier I and II, Tier III, Tier IV), Vertical (Public Sector, Oil and Energy, Media and Entertainment, IT and Telecommunication, Banking, Financial Services and Insurance (BFSI), Healthcare, Retail, and Others), and Region 2025-2033", Saudi Arabia data center construction market size reached USD 226 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,311 Million by 2033, exhibiting a growth rate (CAGR) of 21.6% during 2025-2033.

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Three Growth Factors Driving the Saudi Arabia Data Center Construction Industry

• Vision 2030 and Government Investment

Saudi Arabia’s Vision 2030 is a game-changer, pushing the country to diversify beyond oil and embrace a digital economy. The government, through the Public Investment Fund (PIF), is pouring billions into digital infrastructure, with data centers at the heart of this transformation. Over $6 billion in new investments is expected to flow into upcoming data centers by 2027, fueling projects like NEOM’s smart city. This massive funding supports the construction of 40 upcoming facilities across cities like Riyadh and Jeddah. The Ministry of Communications and Information Technology is also driving initiatives to make Saudi Arabia a global tech hub, attracting companies like Microsoft and Google to build cloud regions. This government-backed push is creating a surge in demand for advanced data center infrastructure to support AI and cloud services.

• Rising Demand for Cloud and AI Services

Businesses in Saudi Arabia are racing to adopt cloud computing and AI, spiking the need for robust data centers. With 36 existing and 40 upcoming facilities, the market is expanding to handle massive data loads. For example, Microsoft’s recently completed cloud region in Saudi Arabia will go live in 2026, supporting AI-driven platforms like the Saudi Data and Artificial Intelligence Authority’s ALLaM model. Companies like DataVolt are investing over $5 billion to develop 300MW of data center capacity, driven by the demand for AI-ready infrastructure. This growth is fueled by both local firms and global giants like AWS and Oracle, who see Saudi Arabia as a key digital hub. The appetite for cutting-edge tech is reshaping the data center landscape.

• Urbanization and Digital Transformation

Saudi Arabia’s fast-growing population and urban boom are driving the need for modern digital infrastructure. With cities like Riyadh and Jeddah expanding, there’s a pressing demand for data centers to support smart city projects and digital services. NEOM alone accounts for nearly 50% of upcoming data center power capacity, with projects like a 1.5GW campus in its Oxagon industrial zone. The government’s focus on smart cities, backed by over $100 billion in AI and digital investments, is pushing companies like Tonomus to launch facilities for 5G and fiber connectivity. This urban-digital synergy is creating a robust pipeline of construction projects, as businesses and public services rely on data centers to power everything from e-commerce to remote education platforms.

Three Key Trends Saudi Arabia Data Center Construction Market

• Green Data Center Solutions

Sustainability is reshaping how data centers are built in Saudi Arabia, aligning with global eco-friendly goals. Developers are adopting energy-efficient designs, like advanced cooling systems and renewable energy integration, to cut costs and environmental impact. For instance, Zscaler’s expanded data centers in the Kingdom prioritize energy-efficient infrastructure to meet regulatory standards. Over 150 global data centers, including those in Saudi Arabia, use Zero Trust architecture to reduce operational complexity while maintaining eco-conscious designs. Companies are also exploring modular data centers, which allow scalable, low-waste construction. These green practices not only meet government mandates but also attract investors who value sustainability, making them a cornerstone of the industry’s evolution.

• Edge Computing Adoption

Edge computing is gaining traction as businesses demand faster data processing closer to users. In Saudi Arabia, this trend is evident in projects like NEOM’s data center, designed to support 5G and real-time applications. With 36 existing facilities and plans for 40 more, edge-focused data centers are being built to handle low-latency needs for smart cities and IoT devices. For example, Tonomus’s new facility in NEOM’s Oxagon district integrates edge computing for seamless connectivity. This shift reduces reliance on centralized cloud systems, improving performance for applications like autonomous vehicles and e-commerce platforms. The trend is driven by the need for real-time data in urban hubs like Riyadh, where digital services are booming.

• Partnerships and Global Investment

Collaboration between local and global players is a major trend, with companies like Alfanar Global Development investing $1.4 billion in new data centers. International giants like Equinix and DataVolt are partnering with Saudi firms to build AI-ready facilities, such as DataVolt’s 1.5GW campus in NEOM. The government’s Vision Invest is backing these efforts, ensuring a steady flow of capital. Notably, Humain, a Saudi AI company, is seeking U.S. partners to expand its 6.6GW data center plans by 2034. These partnerships bring expertise, technology, and funding, positioning Saudi Arabia as a global digital hub. The influx of foreign direct investment, with 3,800 construction licenses issued in 2024, underscores this collaborative momentum.

IMARCs report provides a deep dive into the Saudi Arabia data center construction market analysis, outlining the current trends, underlying market demand, and growth trajectories.

Saudi Arabia Data Center Construction Industry Segmentation:

The report has segmented the market into the following categories:

Construction Type Insights:

• Electrical Construction
• Mechanical Construction

Data Center Type Insights:

• Small-Scale Data Center
• Medium-Scale Data Center
• Large-Scale Data Center

Tier Standards Insights:

• Tier I and II
• Tier III
• Tier IV

Vertical Insights:

• Public Sector
• Oil and Energy
• Media and Entertainment
• IT and Telecommunication
• Banking, Financial Services and Insurance (BFSI)
• Healthcare
• Retail
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Future Outlook

The Saudi Arabia data center construction market is poised for explosive growth, driven by Vision 2030’s ambitious digital agenda. With over $6 billion in investments expected by 2027, the market will see 40 new facilities, particularly in tech-forward regions like NEOM and Riyadh. The focus on AI, cloud services, and smart cities will keep demand high, with companies like Microsoft and DataVolt leading the charge. Green technologies and edge computing will dominate designs, ensuring efficiency and speed. However, challenges like a projected shortage of 663,000 skilled workers could cause delays and raise costs. Despite this, global partnerships and government support will likely keep the momentum going, positioning Saudi Arabia as a leading digital infrastructure hub in the Middle East and beyond.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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