Saudi Arabia's Data Center Market Booms with New Investments and Projects

Strategic Insights -

Saudi Arabia is poised for significant growth in the data center market, driven by new investments and projects that will more than triple the country's existing data center capacity by 2027. Neom, a key development in Saudi Arabia, is leading the charge with its 1.5 GW Oxagon project, accounting for nearly 55% of the total planned power capacity. The existing data center capacity in Saudi Arabia currently stands at around 340 MW, while the upcoming capacity is projected to exceed 2.7 GW, marking an 8x growth.

Key Takeaways:

  • Neom's Oxagon project dominates the upcoming data center market in Saudi Arabia, accounting for nearly 55% of the total planned power capacity with its 1.5 GW project.
  • Over $70 billion in new investments is expected to flow into upcoming data centers in Saudi Arabia by 2027, led by hyperscale developments in Neom and Riyadh.
  • The existing data center capacity in Saudi Arabia stands at around 340 MW, while the upcoming capacity is projected to exceed 2.7 GW, marking an 8x growth.
  • Nearly 500 MW of additional capacity is anticipated to come online by the end of 2025, primarily driven by projects from Gulf Data Hub, Sahayeb, and Ezditek.
  • The Saudi Arabia data center market is expected to attract new entrants, consultants, and government agencies, driving growth and development in the sector.
  • Major operators and investors covered in this report include Agility, Alfnar project, DataVolt, Desert Dragon Data Center, Detecon, Al Saudia Co. Ltd., EDGNEX, Data Centres by DAMAC, Equinix, Ezditek, Gulf Data Hub, Mobily, NourNet, Oxagon (DataVault), Pure Data Centres and Dune Vaults, Quantum Switch, Tamasuk, MCIT, Sahayeb Data centers (Al Moammar Information Systems), Saudi Telecom Company (center3), and TONOMUS.

Statistics:

  • Existing data center capacity in Saudi Arabia: 340 MW
  • Upcoming data center capacity in Saudi Arabia: 2.7 GW
  • Growth rate of data center capacity in Saudi Arabia by 2027: 8x
  • New investments expected in data centers in Saudi Arabia by 2027: $70 billion
  • White floor space in upcoming data centers in Saudi Arabia: 24 facilities with a combined area of [insert area]
  • IT load capacity of existing data centers in Saudi Arabia: [insert capacity]
  • Future capacity additions in data centers in Saudi Arabia from 2025-2029: [insert capacity]
  • Retail colocation pricing in Saudi Arabia: Quarter Rack (1/4) pricing: [insert pricing]; Half Rack Cabinets (1/2) pricing: [insert pricing]; Full Rack Cabinet (42U/45U/47U/etc.) pricing: [insert pricing]
  • Wholesale colocation pricing in Saudi Arabia: pricing per kW: [insert pricing]

Sources:

  • ResearchAndMarkets.com, "Saudi Arabia Existing & Upcoming Data Center Portfolio" database.