The Saudi Arabia data center colocation market size was valued at USD 230 million in 2023 and is expected to reach USD 510 million by 2029, growing at a CAGR of 14.19%.

Saudi Arabia Data Center Power Market is Segmented by Component (Electrical Solutions and Services), Data Center Type (Hyperscaler/Cloud Service Providers, Colocation Providers, and More), Data Center Size (Small Size Data Centers, Medium Size Data Centers, Large Size Data Centers and More), Tier Type (Tier I and II, Tier III, Tier IV). The Market Forecasts are Provided in Terms of Value (USD)

Saudi Arabia data centers portfolio covers 36 existing data centers and 40 upcoming data centers. Analysis of Saudi Arabia Data Centers colocation locations.

The Saudi Arabia data center rack market is experiencing robust growth, driven by the nation's ambitious Vision 2030 plan, which aims to diversify its economy and foster technological advancement. This initiative is fueling significant investment in digital infrastructure, leading to a surge in demand for data center racks. The market size in 2025 is estimated at $250 million, exhibiting a Compound Annual Growth Rate (CAGR) of 17.50% from 2025 to 2033. This growth is propelled by factors such as increasing cloud adoption, the expansion of e-commerce, and the government's commitment to developing a robust digital ecosystem. Key players like Panduit Corp, Legrand SA, and Schneider Electric SE are actively competing in this market, offering a range of solutions tailored to the unique needs of Saudi Arabian data centers. Furthermore, the market's expansion is influenced by several key trends, including the increasing adoption of high-density computing, the growing need for energy-efficient solutions, and the rising demand for advanced rack management systems. While challenges such as initial high infrastructure investment costs and potential skill gaps in managing advanced data center technologies exist, the long-term growth outlook remains exceptionally positive. The market is segmented by rack type (19-inch, 23-inch, others), data center type (colocation, enterprise), and deployment mode (on-premise, cloud). This segmentation offers various opportunities for specialized vendors to cater to specific market niches and further fuel market expansion. The forecast period of 2025-2033 presents significant opportunities for market participants to capitalize on the expanding digital landscape in Saudi Arabia. Key drivers for this market are: Increasing Penetration of FTTH Broadband Networks, Growing Adoption of Hyperscale Data Centers in Large Enterprises. Potential restraints include: High CaPex for Building Data Center Along With Security Challenges. Notable trends are: BFSI To Hold Major Market Share.

The Middle East data center market is experiencing robust growth, driven by the region's burgeoning digital economy and increasing cloud adoption. Factors such as government initiatives promoting digital transformation, rising e-commerce activity, and the expansion of 5G networks are significantly contributing to this expansion. The market is segmented by data center size (large, massive, medium, mega, small), tier type (Tier 1 & 2, Tier 3, Tier 4), absorption rate (utilized vs. non-utilized), colocation type (hyperscale, retail, wholesale), and end-user (BFSI, cloud, e-commerce, government, manufacturing, media & entertainment, IT, and others). While precise market size figures aren't provided, assuming a conservative CAGR (let's assume 15% based on industry averages for emerging markets) and a 2025 market value in the hundreds of millions (let's estimate $500 million USD for illustrative purposes), the market is projected to surpass billions of dollars by 2033. This rapid growth is particularly concentrated in key markets like Saudi Arabia and the UAE, which are strategically investing in infrastructure and attracting significant foreign investment. However, challenges remain. High infrastructure costs, limited skilled workforce availability, and potential regulatory hurdles pose restraints to market growth. To overcome these challenges, the region needs to invest in developing robust talent pipelines, streamlining regulatory processes, and exploring innovative cost-effective solutions for data center construction and operation. The competitive landscape features both regional and international players, suggesting a dynamic environment ripe for consolidation and strategic partnerships in the coming years. The shift towards hyperscale colocation is notable, underscoring the increasing demand for large-scale data center capacity. Continued focus on energy efficiency and sustainability is also crucial in a region facing climatic challenges. Recent developments include: October 2023: Mohamed bin Ali bin Mohamed Al-Mannai, minister of communications and information technology, has launched the M-VAULT 4's fourth data center building. Customers in Qatar can access cloud services through the Microsoft Cloud data center region housed in the new data center facility.October 2022: The prominent network of hyperscale data centers in the Middle East and North Africa region, a joint venture between Khazna Data Centers, and Masdar and EDF have inked a deal to build a ground-mounted solar photovoltaic (PV) plant to power Khazna's new data center in Masdar City.October 2022: The company announced the development of DXB2 and DXB3 with a joint capacity of 43 MW of IT load. The DXB3 facility is an extension of an existing facility transferred to Khazna following the strategic partnership between G42 and e&.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Saudi Arabia's Data Center Rack Market is Segmented Rack Size (Quarter Rack, Half Rack, Full Rack), by Rack Height (42U, 45U, 48U, Other Heights (≥52U and Custom), Rack Type (Cabinet (Closed) Racks, Open-Frame Racks, Wall-Mount Rack), Data Center Type (Colocation Facilities and More), Material (Steel and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Segments.

Saudi Arabia Data Center Storage Market is Segmented by Storage Technology (Network-Attached Storage, Storage Area Network, and More), Storage Type(Traditional HDD Arrays and More), Data Center Type (Colocation Facilities and More), End User (IT and Telecommunication, BFSI and More), Form Factor (Rack-Mounted and More), Interface(SAS/ SATA, Nvme, Fibre Channel and ISCSI). The Market Forecasts are Provided in Terms of Value (USD).

Saudi Arabia Data Center Cooling Market size was valued at USD 17.19 Million in 2024 and is projected to reach USD 145.96 Million by 2032, growing at a CAGR of 30.65% from 2026-2032.

Saudi Arabia Data Center Cooling Market: Definition/Overview

Data center cooling refers to the systems, technologies, and processes that regulate temperature, humidity, and airflow in data centers to prevent overheating and ensure peak performance of IT equipment.

These systems use air cooling, liquid cooling, and free cooling to remove heat from servers, storage devices, and networking hardware. Applications include maintaining equipment reliability, optimizing performance, lowering latency in computer processes, and guaranteeing energy efficiency in facilities that serve key operations like cloud computing, AI processing, and data storage.

Rising digital transformation and government initiatives to diversify the economy are boosting demand for data center facilities in Saudi Arabia, particularly with large-scale projects like NEOM. According to the Verified Market Research, the Saudi Arabia Data Center Market is estimated to reach a valuation of USD 11.4 Billion over the forecast period 2032, surpassing around USD 4.51 Billion valued in 2024.The rapid expansion of the Saudi Arabia data center market is primarily driven by increasing regulatory support, foreign investment, and the country’s strategic geographic location as a digital hub. Growing mobile internet usage, 5G expansion, and rising demand for edge computing are expected to drive the market’s CAGR to 12.70% from 2026 to 2032.

Saudi Arabia Data Center Rack Market size was valued at $33.08 Mn in 2024 and is projected to reach $71.08 Mn by 2032, growing at a CAGR of 9.9% from 2026-2032.Data center racks are standardized frames or enclosures designed to house servers, networking equipment, and other IT infrastructure components in data centers. These racks provide organized storage, efficient cooling, proper cable management, and secure mounting options for various IT equipment. Typically available in different heights measured in rack units (U), data center racks are essential for optimizing space utilization, maintaining proper airflow, and ensuring efficient power distribution within data centers. They come equipped with features such as adjustable mounting rails, cable management solutions, and security mechanisms to protect valuable IT assets.

The Middle East data center cooling market is experiencing robust growth, driven by the region's burgeoning digital economy and increasing adoption of cloud computing and big data analytics. The market, currently valued at approximately $150 million in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 28.43% from 2025 to 2033. This expansion is fueled by several key factors. The rapid growth of hyperscale data centers, particularly in countries like Saudi Arabia and the UAE, is a significant contributor. These facilities require advanced cooling solutions to maintain optimal operating temperatures and prevent equipment failures. Furthermore, rising energy costs and a growing emphasis on energy efficiency are driving demand for innovative cooling technologies, such as liquid-based cooling methods like immersion and direct-to-chip cooling, offering significant energy savings compared to traditional air-based systems. Stringent government regulations promoting digital transformation and the development of smart cities further bolster market growth. The increasing adoption of colocation facilities, offering shared infrastructure and resources to businesses, also contributes to the demand. Competitive market dynamics, with established players like Schneider Electric, Stulz, and Mitsubishi Electric alongside innovative companies, ensures continuous technological advancements and competitive pricing. However, the market's growth is not without challenges. High initial investment costs associated with advanced cooling technologies can hinder adoption, particularly for smaller enterprises. Furthermore, the need for skilled technicians to install and maintain these complex systems presents a potential restraint. Despite these limitations, the overall outlook for the Middle East data center cooling market remains positive, with substantial opportunities for growth across various segments, including hyperscalers, enterprises, and colocation facilities, particularly in key sectors like IT and telecom, and the burgeoning retail and consumer goods sectors. The market's future trajectory hinges on continued infrastructure development, supportive government policies, and technological advancements in energy-efficient cooling solutions. Recent developments include: April 2024: Accelsius, known for its patented NeuCoolTM 2-Phase DTC liquid cooling systems that deliver unmatched high-performance computing and compute density for data center and edge computer operators, announced a strategic partnership with OptiCool Technologies. Together with OptiCool's active RDHx Cool Door, it aims to expedite the development of waterless, direct-to-chip liquid cooling systems, targeting a swiftly growing market.March 2024: Vertiv, a prominent provider of critical digital infrastructure and continuity solutions, unveiled a new suite of high-density data center infrastructure solutions. These are tailored to address the rapidly evolving IT landscape's heightened cooling and power requirements. The newly introduced Vertiv 360AI solutions aim to expedite AI adoption, offering pre-engineered infrastructure, digitized management, and comprehensive end-to-end services. With Vertiv 360AI, powering and cooling AI workloads becomes a streamlined process, catering to all scales. The offerings encompass power and cooling systems, enclosures, complete lifecycle services, and advanced digitized management.. Key drivers for this market are: Government initiatives and rising demand for digitalization are propelling market growth., Increasing Cloud based businesses drives the demand for the studied market. Potential restraints include: Government initiatives and rising demand for digitalization are propelling market growth., Increasing Cloud based businesses drives the demand for the studied market. Notable trends are: IT and Telecom Expected to Experience Highest Growth.

The Saudi Arabia Data Center Networking Market Report Segments the Industry Into Components (By Product, by Services), End-Users (IT & Telecommunication, BFSI, Other End-Users). Data-Center Type(Colocation, Hyperscalers/Cloud Service Providers, and More). And Bandwidth( ≤10 GbE, 25–40 GbE, and More). The Market Forecasts are Provided in Terms of Value (USD).

Saudi Arabia Data Center Power Market size was valued at USD 263.17 Million in 2024 and is projected to reach USD 912.79 Million by 2032, growing at a CAGR of 16.82% from 2026 to 2032.

Key Market Drivers

Rapid Digital Transformation and Cloud Adoption: The Saudi Arabia data center power market is driven by the country's rapid digital transformation and increasing adoption of cloud services. In 2023, the Saudi Communications, Space, and Technology Commission (CST) reported a 30% year-on-year growth in cloud computing investments. Businesses and government entities are migrating to cloud platforms, requiring robust power infrastructure. This driver highlights the critical role of data center power in supporting digital growth.

The Saudi Arabia data center cooling market, valued at approximately $100 million in 2025, is projected to experience robust growth, driven by the Kingdom's Vision 2030 initiative and the burgeoning digital economy. This expansion is fueled by increasing data center deployments across various sectors, including IT and telecom, healthcare, and the rapidly growing e-commerce and media industries. The adoption of advanced cooling technologies, such as liquid-based cooling methods like immersion and direct-to-chip cooling, is further accelerating market expansion. These solutions offer higher efficiency and improved thermal management capabilities compared to traditional air-based systems, addressing the challenges posed by the region's high ambient temperatures. The market is segmented by cooling technology (air-based and liquid-based), data center type (hyperscalers, enterprises, colocation facilities), and end-user industry. Hyperscalers, with their significant investments in data center infrastructure, are expected to contribute significantly to market growth. However, high initial investment costs associated with advanced cooling technologies and a potential shortage of skilled workforce for installation and maintenance could act as restraints. The competitive landscape is characterized by a mix of global and regional players, including Stulz GmbH, Schneider Electric, Vertiv, and others, vying for market share through technological innovation and strategic partnerships. The projected Compound Annual Growth Rate (CAGR) of 31.30% from 2025 to 2033 indicates a significant expansion of the Saudi Arabia data center cooling market. This growth trajectory is anticipated to be influenced by several factors, including government initiatives promoting digital transformation, increasing cloud adoption, and the expansion of 5G networks. The focus on energy efficiency will drive demand for innovative cooling solutions that minimize power consumption and reduce operational costs. The market's structure suggests opportunities for both established players and new entrants offering specialized solutions to cater to the specific requirements of different segments. Companies are likely to focus on building strong local partnerships and developing solutions tailored to the climatic conditions and regulatory environment of Saudi Arabia to effectively capitalize on this growth potential. Recent developments include: November 2023: LiquidStack unveiled its latest innovation: a single-phase liquid cooling solution. This new technology empowers data centers with a cost-effective alternative to traditional air cooling and offers energy efficiency and sustainability through immersion cooling. LiquidStack's solution boasts unparalleled efficiency, outperforming its competitors by delivering over 100kW per full-size tank under comparable conditions. Given Saudi Arabia's ambitious move toward smart cities, this breakthrough is expected to increase the demand for single-phase cooling solutions, thereby enhancing the nation's computing capabilities.December 2023: Vertiv acquired Cooltera Ltd, a manufacturer of coolant distribution units (CDU) and secondary fluid networks (SFN). This acquisition is expected to improve the existing DC cooling solutions offered by the company.. Key drivers for this market are: Government initiatives and rising demand for digitalization are propelling market growth., Increasing trend of Cloud based businesses in the country drives the demand for the studied market. Potential restraints include: Government initiatives and rising demand for digitalization are propelling market growth., Increasing trend of Cloud based businesses in the country drives the demand for the studied market. Notable trends are: The IT and Telecom Segment is Expected to Have Significant Market Share.

Saudi Arabia Data Center Construction Market is Segmented by Tier Type (Tier 1 and 2, Tier 3 and Tier 4), Data Center Type(Colocation, Self-Built Hyperscalers (CSPs), Enterprise, and Edge), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure). The Market Forecasts are Provided in Terms of Value (USD).

The Middle East data center rack market is experiencing robust growth, driven by the region's expanding digital economy and increasing adoption of cloud computing and big data analytics. A compound annual growth rate (CAGR) of 16.90% from 2019 to 2024 indicates significant market expansion. This surge is fueled by substantial investments in infrastructure modernization across various sectors, including IT & telecommunications, BFSI (Banking, Financial Services, and Insurance), government initiatives promoting digital transformation, and the burgeoning media & entertainment industries. The demand for efficient and scalable data center solutions is a key driver, leading to a preference for standardized rack sizes like full, half, and quarter racks. Growth is particularly strong in countries like Saudi Arabia and the UAE, which are investing heavily in smart city initiatives and digital infrastructure development. While a precise market size for 2025 is unavailable, extrapolating from the 2019-2024 CAGR and considering ongoing investments, a reasonable estimate would place the 2025 market size in the range of $300-400 million. This growth is expected to continue throughout the forecast period (2025-2033), although potential restraints include geopolitical instability and economic fluctuations in some parts of the region. Nevertheless, the long-term outlook remains positive due to the sustained commitment to technological advancement and digital infrastructure expansion across the Middle East. The market segmentation reveals a preference for full-rack solutions within the IT & Telecommunication and BFSI sectors, while smaller rack sizes are more prevalent in government and media & entertainment due to varying space and capacity needs. Key players such as Eaton Corporation, Rittal, Schneider Electric, and Dell are well-positioned to capitalize on this growth by offering a range of rack solutions tailored to diverse customer requirements. The competitive landscape is characterized by strong brand recognition, technological innovation, and a focus on providing comprehensive solutions that address the specific challenges faced by data center operators in the region. Future growth will likely be influenced by advancements in cooling technology, increased adoption of edge computing, and the growing demand for sustainable and energy-efficient data center infrastructure. Recent developments include: October 2023: GRC (Green Revolution Cooling), DCV Industries, and Dell Technologies announced today a collaboration to deliver cutting-edge, immersion-cooled, modular data centers to the Middle East Region. By combining GRC’s leading patented single-phase immersion cooling, DCV’s robust containerized data center enclosures and Dell’s high-density server technologies, the relationship aims to offer organizations in the region a comprehensive solution to significantly reduce data center build, maintenance, and power costs when compared to traditional air-cooled facilities., July 2024: Vertiv, a global provider of critical digital infrastructure and continuity solutions, and Gulf Data Hub (GDH), a leader in colocation services and data center solutions, announced details surrounding their transformational multi-year data center collaboration project at a facility dedicated to advancing biotechnological research and renewable energy generation in Dubai, UAE.. Key drivers for this market are: Increasing Deployment of Data Center Facilities, Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers; BFSI Sector Expected to Hold a Significant Share. Potential restraints include: Increasing Deployment of Data Center Facilities, Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers; BFSI Sector Expected to Hold a Significant Share. Notable trends are: BFSI is expected to witness the highest growth.

The Study of Data Center Water Consumption in Saudi Arabia Market Report is Segmented by Source of Water Procurement (Potable Water, Non-Potable Water, Other Alternate Sources), by Data Center Type (Enterprise, Colocation, Cloud Service Providers), and by Data Center Size (Mega, Massive, Large, Medium, Small). The Market Sizes and Forecasts are Provided in Terms of Volume (Billion Liters).

The Saudi Arabia Data Center Cooling Market report segments the industry into By Cooling Technology (Air-based Cooling, Liquid-based Cooling), By Type (Hyperscalers (Owned and Leased), Enterprise (On-premise), Colocation), and By End-user Industry (IT and Telecom, Retail and Consumer Goods, Healthcare, Media and Entertainment, Federal and Institutional Agencies, Other End-user Industries).

Saudi Arabia Artificial Intelligence Optimised Data Center Market Report is Segmented by Data Center Type (CSP Data Centers, Colocation Data Centers, Others (Enterprise and Edge)), by Component (Hardware, Software Technology, Services - (Managed Services, Professional Services, Etc. ). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).