| Study Period | 2024 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 1.61 Billion |
| Market Size (2031) | USD 8.42 Billion |
| CAGR (2025 - 2031) | 31.79 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Construction Market Analysis
The Saudi Arabia Data Center Construction Market size is estimated at USD 1.61 billion in 2025, and is expected to reach USD 8.42 billion by 2031, at a CAGR of 31.79% during the forecast period (2025-2031).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Saudi data center construction market is expected to reach more than 1000 MW by 2030
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to reach more than 7 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach around 139,604 units by 2030. Riyadh is expected to house the maximum number of racks in 2030.
- Planned Submarine Cables: There are close to four submarine cables named Middle East North Africa (MENA) Cable System/Gulf Bridge International, Gulf Bridge International Cable System (GBICS)/Middle East North Africa (MENA) Cable System, Tata TGN-Gulf, Saudi Arabia-Sudan-2 (SAS-2) with landing points Jeddah, Saudi Arabia, Rønne, Denmark, Tejn, Denmark, Al Khobar, Saudi Arabia, Al Khobar, Saudi Arabia, and Jeddah, Saudi Arabia.
Saudi Arabia Data Center Construction Market Trends
IT and Telecom Contributing Significant Market Share
- The Saudi Ministry of Communications and Information Technology (MCIT) announced an ambitious initiative, allocating a staggering USD 18 billion to establish a network of large-scale data centers across the country. The government aims to position Saudi Arabia as the central data hub in the region. To achieve this, the country is actively engaging both local and international investors. This strategic move aligns with the nation's expanding international relationships, further fueling the growth of the data center industry. For instance, Tencent Holding, a prominent Chinese internet services company, is gearing up to bolster its cloud services in Saudi Arabia. The company’s initial focus will be on offering cloud storage solutions to local gaming companies. Subsequently, the company plans to delve into AI computing, with a specific emphasis on developing an Arabic language model.
- The telecom industry is poised for continued dominance, driven by the rising adoption of 5G networks by users. By 2030, the speed of 5G mobile data is projected to surge to 921 Mbps.
- This underscores the rising demand for data center servers. The surge in smartphone adoption, coupled with the rapid growth of 4G and 5G networks, is notably propelling Saudi Arabia's data center market. Furthermore, the country's ambitious Vision 2030, aimed at modernizing and automating its economy, underscores the pivotal role of 5G mobile services in this transformation.
- The disruptive potential of 5G enables the emergence of innovative applications. Saudi Arabia, as per the CITC, is set to lead as the first nation in Europe, Africa, and the Middle East to open up the entire 6 GHz frequency range for Wi-Fi utilization.
- Saudi Arabia has significantly boosted the free airwaves for the upcoming Wi-Fi networks, marking a 150% increase. The country has allocated a substantial 2,035 MHz of spectrum, with a notable 1,200 MHz earmarked specifically for Wi-Fi 6, surpassing all other nations globally. This move has spurred a surge in demand for new data centers in Saudi Arabia as the nation grapples with mounting data processing needs.
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Tier 3 Contributing Significant Share
- In 2023, tier 3 was set to claim a substantial market share, driven by a surge in tier 3 certifications across numerous facilities. Meanwhile, tier 4 is poised for rapid growth in the coming years.
- In the upcoming years, tier 1 and tier 2 facilities are expected to experience diminishing demand and slower growth rates, mainly due to frequent and unpredictable outages. As a result, a considerable number of users are projected to migrate toward tier 3 and 4 facilities. This transition is driven by the increasing demand for more reliable data storage, enhanced processing, and advanced analytical capabilities.
- As of 2023, Saudi Arabia boasted approximately 38 data centers holding tier 3 certification, with an additional 40 in various stages of construction. Notably, Riyadh emerged as the primary hub for these data centers. The surge in demand for tier 3 data centers in the nation is predominantly fueled by their reliability and affordability.
- The rise of tier 3 data centers is fueled by the country's pivot toward a digital economy and the influx of major multinational corporations. Furthermore, with the growing importance of data centers for 5G applications, the country is prioritizing digital infrastructures, including data centers. The surge in smartphone adoption and data traffic per device has further underscored the necessity of data centers. Notably, as businesses increasingly demand 24/7 continuity services, there is a discernible trend toward opting for tier 3 and tier 4 data centers, a choice favored by a rising number of global enterprises.
- The surge in cloud computing and digital transformation drives an escalating demand for data centers. Customers prioritize data security and adherence to local regulations. Thus, this heightened demand necessitates the construction of additional data centers in the country.
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Saudi Arabia Data Center Construction Industry Overview
The Saudi data center construction market features key players like Alfanar Group and Linesight, among others, leading to a slightly fragmented landscape. Notably, major data center corporations are intensifying their investments in Saudi Arabia, with a primary focus on expansion and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
For instance, in February 2023, the Damac Group announced a USD 600 million investment to bolster its data centers in Riyadh and Dammam, Saudi Arabia. This initiative is a pivotal component of the company's broader USD 1 billion data center expansion plan spanning Africa, Asia, and the Middle East. The facilities are set to kick off with 5 megawatts of IT capacity each, with an additional 5 megawatts slated for 2024. By 2025, these centers are projected to collectively offer a substantial 55 megawatts of IT capacity.
Saudi Arabia Data Center Construction Market Leaders
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Alfanar Group
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Linesight
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ICS Arabia
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SALFO S.A.
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ALEC Engineering and Contracting LLC
- *Disclaimer: Major Players sorted in no particular order
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Saudi Arabia Data Center Construction Market News
- January 2023: Quantum Switch Tamasuk (QST), based in Saudi Arabia, partnered with the Ministry of Communications & Information Technology (MCIT) to kick off the initial stage of their ambitious 300 MW data center project. This initiative involves establishing six 50 MW data centers strategically placed in Riyadh, Dammam, Jeddah, and NEOM. The blueprint outlines a phased approach, aiming to add 60 MW of data center capacity annually, with the goal of reaching the full 300 MW by 2026. According to MEED, the total budget for this endeavor is projected to exceed USD 2 billion.
- May 2023: PIF has made a strategic investment in DigitalBridge's latest digital infrastructure initiative, focusing on the Gulf nations. This move is designed to not only bring advanced technologies to the region but also to facilitate knowledge sharing. The ultimate goal is to establish and manage hyperscale data centers and database servers, primarily in Saudi Arabia and across the broader GCC region.
Saudi Arabia Data Center Construction Industry Overview
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The Saudi Arabian data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power backup solution (UPS, generators), service – design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services & insurance, it and telecommunications, government & defense, healthcare, and other end users). The market sizes and forecasts are provided in USD value for all the above segments.
| By Infrastructure | By Electrical Infrastructure | Power Distribution Solution | PDU - Basic & Smart - Metered & Switched solutions | |
| Transfer Switches | Static | |||
| Automatic (ATS) | ||||
| Switchgear | Low-Voltage | |||
| Medium-Voltage | ||||
| Power Panels and Components | ||||
| Other Power Distribution Solutions | ||||
| Power Backup Solutions | UPS | |||
| Generators | ||||
| Service - Design & Consulting, Integration, and Support & Maintenance | ||||
| By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | ||
| Direct-To-Chip Cooling | ||||
| Rear Door Heat Exchanger | ||||
| In-Row and In-Rack Cooling | ||||
| Racks | ||||
| Other Mechanical Infrastructure | ||||
| General Construction | ||||
| By Tier Type | Tier 1 and 2 | |||
| Tier 3 | ||||
| Tier 4 | ||||
| By End User | Banking, Financial Services, and Insurance | |||
| IT and Telecommunications | ||||
| Government and Defense | ||||
| Healthcare | ||||
| Other End Users | ||||
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Saudi Arabia Data Center Construction Market Research Faqs
How big is the Saudi Arabia Data Center Construction Market?
The Saudi Arabia Data Center Construction Market size is expected to reach USD 1.61 billion in 2025 and grow at a CAGR of 31.79% to reach USD 8.42 billion by 2031.
What is the current Saudi Arabia Data Center Construction Market size?
In 2025, the Saudi Arabia Data Center Construction Market size is expected to reach USD 1.61 billion.
Who are the key players in Saudi Arabia Data Center Construction Market?
Alfanar Group, Linesight, ICS Arabia, SALFO S.A. and ALEC Engineering and Contracting LLC are the major companies operating in the Saudi Arabia Data Center Construction Market.
What years does this Saudi Arabia Data Center Construction Market cover, and what was the market size in 2024?
In 2024, the Saudi Arabia Data Center Construction Market size was estimated at USD 1.10 billion. The report covers the Saudi Arabia Data Center Construction Market historical market size for years: 2024. The report also forecasts the Saudi Arabia Data Center Construction Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
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Saudi Arabia Data Center Construction Industry Report
Statistics for the 2025 Saudi Arabia Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Data Center Construction analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
