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

The Saudi Arabia Data Center Power Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and substantial investments from domestic players. This expansion is reflected in the anticipated rise in IT load capacity, raised floor space, and the number of racks to be installed, with Riyadh expected to be a central hub. Additionally, the development of submarine cable systems is set to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Saudi Arabia Data Center Power Industry

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Saudi Arabia Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 211.70 Million
Market Size (2029) USD 455.90 Million
CAGR (2024 - 2029) 16.50 %
Market Concentration Medium

Major Players

Saudi Arabia Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Saudi Arabia Data Center Power Market Analysis

The Saudi Arabia Data Center Power Market size is estimated at USD 211.70 million in 2024, and is expected to reach USD 455.90 million by 2029, growing at a CAGR of 16.5% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

  • Under construction IT load capacity: The upcoming IT load capacity of the Saudi Arabian data center rack market is expected to reach 850 MW by 2029. Saudi Arabia's electricity consumption increased by 4.23% Y-o-Y to 301,600 gigawatt hours (GWh) in 2021, compared to 289,330 GWh in 2020.
  • Under construction raised floor space: The country's construction of raised floor area is expected to increase to 3.4 million sq. ft by 2029.
  • Planned racks: The country's total number of racks to be installed is expected to reach 1,70,000 units by 2029. Riyadh is expected to house the maximum number of racks by 2029.
  • Planned submarine cables: There are more than 10 submarine cable systems connecting Saudi Arabia, and many are under construction.

Saudi Arabia Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions, tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The Saudi Arabian data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Power Infrastructure
Electrical Solution
UPS Systems
Generators
Power Distribution Solutions
PDU
Switchgear
Critical Power Distribution
Transfer Switches
Remote Power Panels
Others
Service
End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End Users
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Saudi Arabia Data Center Power Market Size Summary

The Saudi Arabian data center power market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is expected to expand considerably over the forecast period, supported by advancements in digital infrastructure and connectivity initiatives under Saudi Vision 2030. The country's focus on digital transformation through e-commerce, digital education, and smart cities is further propelling the demand for data centers. The introduction of the Personal Data Protection Act and the expansion of 5G services are also contributing to the market's attractiveness, encouraging foreign investment and the adoption of innovative technologies like AI and IoT.

The competitive landscape of the Saudi Arabian data center power market is characterized by the presence of major players such as ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc. These companies are actively engaging in partnerships and acquisitions to enhance their product offerings and maintain a sustainable competitive edge. Recent developments, such as Vertiv's plans to double its manufacturing capacity and Eaton Corporation's launch of a new Rack PDU, highlight the dynamic nature of the market. Additionally, initiatives like the use of hydrogen fuel cells for backup power solutions reflect the industry's shift towards eco-friendly and reliable energy sources, aligning with global sustainability trends.

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Saudi Arabia Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Others

      2. 2.1.2 Service

    2. 2.2 End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End Users

Saudi Arabia Data Center Power Market Size FAQs

The Saudi Arabia Data Center Power Market size is expected to reach USD 211.70 million in 2024 and grow at a CAGR of 16.5% to reach USD 455.90 million by 2029.

In 2024, the Saudi Arabia Data Center Power Market size is expected to reach USD 211.70 million.

Saudi Arabia Data Center Power Market Report Snapshots

Saudi Arabia Data Center Power Market Size and Share Analysis - Growth Trends and Forecasts (2024 - 2029)