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Saudi Arabia Data Center Construction Market Size (2024 - 2029)

The Saudi Arabia data center construction market is projected to experience significant growth over the forecast period, with a substantial increase in market size. This expansion is driven by the development of IT load capacity, raised floor space, and the installation of a large number of racks, particularly concentrated in Riyadh. Additionally, the market is set to benefit from the planned submarine cables, enhancing connectivity and infrastructure capabilities.

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Market Size of Saudi Arabia Data Center Construction Industry

Saudi Arabia Data Center Construction Market
Study Period 2024 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 1.22 Billion
Market Size (2030) USD 6.37 Billion
CAGR (2024 - 2030) 31.79 %
Market Concentration Medium

Major Players

Saudi Arabia Data Center Construction Market 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 1.22 billion in 2024, and is expected to reach USD 6.37 billion by 2030, growing at a CAGR of 31.79% during the forecast period (2024-2030).

  • 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 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 Size Summary

The Saudi Arabia data center construction market is poised for significant growth, driven by the country's ambitious Vision 2030 initiative, which aims to modernize and automate the economy. The market is experiencing a surge in demand due to the rapid expansion of IT infrastructure, fueled by the increasing adoption of 5G networks and the digital transformation of key sectors such as cloud, telecom, and BFSI. Riyadh stands out as the primary hub for data centers, benefiting from its strategic location and well-connected infrastructure, which facilitates investment and connectivity between Asia, Africa, the GCC, and Europe. The city's focus on digital sustainability and talent development further enhances its position as a leading ICT center in the Kingdom.

The market landscape is fairly consolidated, with major players like Johnson Controls International Plc, AECOM, Arup, Daikin Industries Ltd, and Mitsubishi Electric playing pivotal roles. Significant projects, such as those undertaken by Saudi Telecom Company (STC), are underway to expand data center facilities across multiple cities, including Riyadh, Jeddah, and Medina. These developments are expected to substantially increase the country's IT load capacity and raised floor space, supporting the growing demand for data center services. The strategic deployment of submarine cables and the expansion of WiFi6 spectrum availability underscore the nation's commitment to enhancing its digital infrastructure, positioning Saudi Arabia as a leader in the region's data center market.

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Saudi Arabia Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By Infrastructure

      1. 1.1.1 By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic & Smart - Metered & Switched solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-Voltage

            2. 1.1.1.1.3.2 Medium-Voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Other Power Distribution Solutions

        2. 1.1.1.2 Power Backup Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design & Consulting, Integration, and Support & Maintenance

      2. 1.1.2 By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-To-Chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-Row and In-Rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 By Tier Type

      1. 1.2.1 Tier 1 and 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

Saudi Arabia Data Center Construction Market Size FAQs

The Saudi Arabia Data Center Construction Market size is expected to reach USD 1.22 billion in 2024 and grow at a CAGR of 31.79% to reach USD 6.37 billion by 2030.

In 2024, the Saudi Arabia Data Center Construction Market size is expected to reach USD 1.22 billion.

Saudi Arabia Data Center Construction Market Report Snapshots

Saudi Arabia Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024-2030)