Market Size of saudi arabia data center Industry
|
Study Period | 2017 - 2029 |
|
Market Volume (2024) | 345.3 MW |
|
|
Market Volume (2029) | 854.8 MW |
|
Largest Share by Tier Type | Tier 3 |
|
|
CAGR (2024 - 2029) | 19.88 % |
|
|
Fastest Growing by Tier Type | Tier 4 |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Market Analysis
The Saudi Arabia Data Center Market size is estimated at 345.3 MW in 2024, and is expected to reach 854.8 MW by 2029, growing at a CAGR of 19.88%. Further, the market is expected to generate colocation revenue of USD 5,287.1 Million in 2024 and is projected to reach USD 13,577.6 Million by 2029, growing at a CAGR of 20.76% during the forecast period (2024-2029).
USD 5,287.09 Million
Market Size in 2024
USD 13,557.5 Million
Market Size in 2029
6.2%
CAGR (2017-2023)
20.8%
CAGR (2024-2029)
IT Load Capacity
345.3 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 855 MW by 2029. About 93% of Saudi Arabian smartphone users browse advertisements on their phones it would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 1.38 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 3.4 million sq. ft by 2029. The construction of smart cities in Saudi Arabia may boost the demand for data centers to store more data.
Installed Racks
69,063
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 170,963 units by 2029. Riyadh is expected to house the maximum number of racks by 2029 owing to the construction of new large data center facilities.
# of DC Operators & DC Facilities
15 and 39
Volume, DC Facilities, 2024
There are 39 colocation data center facilities in Saudi Arabia. Some factors contributing to the growth of the data center in the country are the adoption of 5G, smartphone penetration, and growing digitization.
Leading Market Player
51.8%
Market Share, Etihad Etisalat Company (Mobily) , 2023
Etihad Etisalat Company (Mobily) was the leading player in the Saudi Arabian market during the historical period. The company rolled out eight data centers with a capacity of 168.3 MW.
Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period
- The tier 3 data center segment is projected to reach an IT load capacity of 224.87 MW in 2023 in the Saudi Arabian market. It is expected to have a capacity of 483.43 MW by 2029, representing a CAGR of 13.61%. Tier 4 data center in the Saudi Arabian market is projected to reach an IT load capacity of 134.65 MW in 2023. It is expected to register a CAGR of 18.44% to reach a capacity of 371.64 MW by 2029.
- In comparison to other tier types, tier 3 is projected to increase fastest in 2029. This is a result of the majority of facilities achieving Tier 3 certification. Tier 4 is projected to increase rapidly in the next few years. This is due to the establishment of a digital economy in the country and the incorporation of significant multinational corporations. Additionally, digital infrastructures like data centers are essential for 5G applications. The expansion of business continuity services 24/7 has led to an increase in the choice of tier 3 and tier 4 data centers due to the increasing number of worldwide companies.
- Due to the rigorous laws regarding data storage and protection in this market, data is a vital component of BFSI companies. Additionally, the BFSI segment adopted digitization. As more people use different banking applications, banking and financial services data grows exponentially. BFSI also manages thousands of physical servers and virtual computers. For instance, Saudi Arabia had 16,544 ATMs in 2021. Therefore, the industry is classified as tier 3 to handle such a volume of data.
Saudi Arabia Data Center Industry Segmentation
Riyadh are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- The tier 3 data center segment is projected to reach an IT load capacity of 224.87 MW in 2023 in the Saudi Arabian market. It is expected to have a capacity of 483.43 MW by 2029, representing a CAGR of 13.61%. Tier 4 data center in the Saudi Arabian market is projected to reach an IT load capacity of 134.65 MW in 2023. It is expected to register a CAGR of 18.44% to reach a capacity of 371.64 MW by 2029.
- In comparison to other tier types, tier 3 is projected to increase fastest in 2029. This is a result of the majority of facilities achieving Tier 3 certification. Tier 4 is projected to increase rapidly in the next few years. This is due to the establishment of a digital economy in the country and the incorporation of significant multinational corporations. Additionally, digital infrastructures like data centers are essential for 5G applications. The expansion of business continuity services 24/7 has led to an increase in the choice of tier 3 and tier 4 data centers due to the increasing number of worldwide companies.
- Due to the rigorous laws regarding data storage and protection in this market, data is a vital component of BFSI companies. Additionally, the BFSI segment adopted digitization. As more people use different banking applications, banking and financial services data grows exponentially. BFSI also manages thousands of physical servers and virtual computers. For instance, Saudi Arabia had 16,544 ATMs in 2021. Therefore, the industry is classified as tier 3 to handle such a volume of data.
| Hotspot | |
| Riyadh | |
| Rest of Saudi Arabia |
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
|
Saudi Arabia Data Center Market Size Summary
The Saudi Arabia data center market is experiencing significant growth, driven by the increasing demand for digital infrastructure to support the country's burgeoning digital economy. The market is characterized by a robust expansion in data center capacity, particularly in tier 3 and tier 4 segments, which are essential for accommodating the rising data traffic and supporting 5G applications. The proliferation of mobile devices and the expansion of 5G networks have further fueled the demand for data centers, as more consumers engage with digital services and applications. The banking, financial services, and insurance (BFSI) sector, in particular, is a major contributor to this growth, as it increasingly adopts digitization to manage the exponential growth of data generated by banking applications and services.
The market is moderately consolidated, with key players such as ETIHAD ATHEEB TELECOMMUNICATION COMPANY, Etihad Etisalat Company (Mobily), HostGee Cloud Hosting Inc., Saudi Telecom Company, and SHABAKAH INTEGRATED TECHNOLOGY leading the charge. These companies are actively expanding their data center capabilities to meet the growing demand, as evidenced by significant projects like Saudi Telecom Company's multi-phase data center expansion across several cities. The rise in smartphone penetration and the increasing volume of mobile data traffic are expected to continue driving the market's growth, as more consumers in Saudi Arabia engage with online services and e-commerce platforms. This dynamic landscape presents substantial opportunities for further investment and development in the data center sector, positioning Saudi Arabia as a key player in the region's digital transformation.
Saudi Arabia Data Center Market Size - Table of Contents
-
1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
-
1.1 Hotspot
-
1.1.1 Riyadh
-
1.1.2 Rest of Saudi Arabia
-
-
1.2 Data Center Size
-
1.2.1 Large
-
1.2.2 Massive
-
1.2.3 Medium
-
1.2.4 Mega
-
1.2.5 Small
-
-
1.3 Tier Type
-
1.3.1 Tier 1 and 2
-
1.3.2 Tier 3
-
1.3.3 Tier 4
-
-
1.4 Absorption
-
1.4.1 Non-Utilized
-
1.4.2 Utilized
-
1.4.2.1 By Colocation Type
-
1.4.2.1.1 Hyperscale
-
1.4.2.1.2 Retail
-
1.4.2.1.3 Wholesale
-
-
1.4.2.2 By End User
-
1.4.2.2.1 BFSI
-
1.4.2.2.2 Cloud
-
1.4.2.2.3 E-Commerce
-
1.4.2.2.4 Government
-
1.4.2.2.5 Manufacturing
-
1.4.2.2.6 Media & Entertainment
-
1.4.2.2.7 Telecom
-
1.4.2.2.8 Other End User
-
-
-
-
Saudi Arabia Data Center Market Size FAQs
What is the current Saudi Arabia Data Center Market size?
The Saudi Arabia Data Center Market is projected to register a CAGR of 19.88% during the forecast period (2024-2029).
Who are the key players in Saudi Arabia Data Center Market?
ETIHAD ATHEEB TELECOMMUNICATION COMPANY, Etihad Etisalat Company (Mobily), HostGee Cloud Hosting Inc., Saudi Telecom Company and SHABAKAH INTEGRATED TECHNOLOGY are the major companies operating in the Saudi Arabia Data Center Market.
