The Saudi Arabia data center market will gain around $1 billion worth of investments by 2026, growing at a CAGR of over 7.85% from 2020−2026. Among the key drivers and trends fueling this market’s growth include the surge in big data and IoT, increased adoption of renewable energy resources, and migration from on-premises infrastructure to colocation & managed services.
Huawei Technologies, Atos, and Cisco Systems are among the leading IT infrastructure providers within KSA’s data center market. As per Arizton’s data, there are 19 existing and 8 upcoming data centers facilities in Saudi Arabia.
Being one of the most significant data center colocation markets in the Middle East region, the Saudi Ministry of Communications and Information Technology (MCIT) is currently working with local players to develop a network of hyperscale colocation data centers in the country. It follows this strategy to attract $18 billion from investors by 2030. To be specific, Riyadh houses around 50% of the region's total facilities.
Furthermore, telecom service providers are likely to get more involved during the forecast period with Mobily, stc, and Salam (Integrated Telecom Company) already dominating the colocation market in Saudi Arabia.
There is also increased investment in the country by cloud service providers such as Google and Oracle, creating massive investment opportunities in cloud computing and the incorporation of IoT technologies in the market (accelerated by 5G).