Market Size of Saudi Arabia Data Center Server Industry
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.63 Billion |
| Market Size (2030) | USD 2.82 Billion |
| CAGR (2024 - 2030) | 9.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Server Market Analysis
The Saudi Arabia Data Center Server Market size is estimated at USD 1.63 billion in 2024, and is expected to reach USD 2.82 billion by 2030, growing at a CAGR of 9.60% during the forecast period (2024-2030).
The Saudi Arabia data center server market reached a value of USD 715 million in the previous year, and it is further projected to register a CAGR of 9.6% during the forecast period. 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 Arabia data center rack market is expected to reach 855 MW by 2030.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 3.4 million sq. ft by 2030.
Planned Racks: The country's total number of racks to be installed is expected to reach above 1,70,000 units by 2030. Riyadh is expected to house the maximum number of racks by 2030.
Planned Submarine Cables: There are close to 4 submarine cable systems connecting Saudi Arabia, and many are under construction. In August 2022, STC announced the opening of the Saudi Vision Cable, the Red Sea's first high-speed cable, via a landing station in Jeddah.
Saudi Arabia Data Center Server Industry Segmentation
A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.
The Saudi Arabia data center server market is segmented by form factor (blade server, rack server, and tower server) and by 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) for all the above segments.
| Form Factor | |
| Blade Server | |
| Rack Server | |
| Tower Server |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-User |
Saudi Arabia Data Center Server Market Size Summary
The Saudi Arabia data center server market is experiencing 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 characterized by a shift towards advanced technologies such as blade servers, which offer reduced power consumption and high processing power, making them an attractive option for industry players. The rise in e-commerce and digital payment methods is further fueling the demand for data centers, as more data needs to be processed and stored to support the growing online transactions. The government's digital transformation initiatives, including the development of smart cities and e-government services, are also contributing to the expansion of the data center market, as they require robust digital infrastructure to support these advancements.
The market is moderately competitive, with major players like Dell Inc., IBM Corporation, Hewlett Packard Enterprise, Lenovo Group Limited, and Cisco Systems Inc. dominating the landscape. These companies are continuously innovating to meet the evolving needs of data centers, as evidenced by recent product launches and updates. The adoption of cloud-based technologies is accelerating, supported by investments from global cloud providers such as Google and Oracle, which are enhancing the capabilities of data centers in the region. The deployment of 5G networks and the rapid growth of the fixed Internet market are also contributing to the market's expansion, as they enable faster and more reliable data transmission, essential for supporting the increasing digital activities in Saudi Arabia.
Saudi Arabia Data Center Server Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Number of Smartpone Users
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1.2.2 Fiber Connectivity Network Expansion
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1.3 Market Restraints
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1.3.1 Increasing number of Data Security Breaches
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Form Factor
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2.1.1 Blade Server
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2.1.2 Rack Server
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2.1.3 Tower Server
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-User
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Saudi Arabia Data Center Server Market Size FAQs
How big is the Saudi Arabia Data Center Server Market?
The Saudi Arabia Data Center Server Market size is expected to reach USD 1.63 billion in 2024 and grow at a CAGR of 9.60% to reach USD 2.82 billion by 2030.
What is the current Saudi Arabia Data Center Server Market size?
In 2024, the Saudi Arabia Data Center Server Market size is expected to reach USD 1.63 billion.
