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

The Saudi Arabia Data Center Rack Market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, stringent government regulations for local data security, and substantial investments from domestic players. This expansion is reflected in the anticipated increase in IT load capacity, raised floor space, and the number of racks to be installed, with Riyadh expected to accommodate the majority. 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 Rack Industry

Saudi Arabia Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 17.50 %
Market Concentration Low

Major Players

Saudi Arabia Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Data Center Rack Market Analysis

The Saudi Arabia Data Center Rack Market is expected to register a CAGR of 17.5% during the forecast period.

The Saudi Arabia Data Center Rack Market reached a volume of 64,803 in the previous year, and it is further projected to register a CAGR of 17.5% 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/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Saudi Arabia data center market is expected to reach 855 MW by 2029.
  • 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 over 170,000 units by 2029. Riyadh is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 5 submarine cable systems connecting Saudi Arabia, and many are under construction. One such submarine cable that is estimated to start service in 2023 is with Etihad Etisalat Company (Mobily), which announced its participation in the Southeast Asia - Middle East - Western Europe 6 (SEA-ME-WE 6) consortium that would build a 19,200 km-long new undersea cable system connecting the Kingdom of Saudi Arabia.

Saudi Arabia Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Saudi Arabia data center rack market is segmented by rack type (open frame, closed frame), rack size (quarter rack, half rack, full rack), and end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Saudi Arabia Data Center Rack Market Size Summary

The Saudi Arabia Data Center Rack 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 hyperscale and wholesale data centers, necessitating the installation of full racks to accommodate the growing data storage needs. The country's digital transformation is further accelerated by the adoption of public cloud technologies and the influx of foreign direct investments, which are expected to enhance the demand for tier 4 infrastructure. Major tech companies, including Google and Oracle, are making substantial investments in the region, contributing to the expansion of data center services and infrastructure.

The competitive landscape of the Saudi Arabia Data Center Rack Market is fairly fragmented, with key players such as Dell Technologies Inc., Eaton Corporation Plc, and Hewlett Packard Enterprise Co. leading the market. These companies are focusing on strategic collaborations and innovations to expand their market share and enhance profitability. Recent developments include Eaton's launch of the Open Compute Project's Open Rack v3 compatible solutions and Oracle's introduction of a single-rack Oracle Cloud system. These advancements reflect the industry's commitment to providing efficient and scalable solutions to meet the burgeoning demand for data center racks in the region.

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Saudi Arabia Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Penetration of FTTH Broadband Networks

      2. 1.2.2 Growing Adoption of Hyperscale Data Centers in Large Enterprises

    3. 1.3 Market Restraints

      1. 1.3.1 High CaPex for Building Data Center Along With Security Challenges

    4. 1.4 Value Chain / Supply Chain Analysis

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

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Saudi Arabia Data Center Rack Market Size FAQs

The Saudi Arabia Data Center Rack Market is projected to register a CAGR of 17.5% during the forecast period (2024-2030)

Dell Technologies Inc., Eaton Corporation Plc, Norden Communication, Hewlett Packard Enterprise Co. and Legrand SA are the major companies operating in the Saudi Arabia Data Center Rack Market.

Saudi Arabia Data Center Rack Market Report Snapshots

Saudi Arabia Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)