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HomeTechnologyRapid Expansion of Saudi Data Centers

Rapid Expansion of Saudi Data Centers

Insights into Saudi Arabia's Data Center Boom

March 14, 2024
in Technology
Reading Time: 2 mins read
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The Kingdom of Saudi Arabia is experiencing significant growth in its data center sector, with approximately 24 colocation data centers currently operational. A notable example includes the Uptime-rated Tier III Dammam Data Center operated by center3 (stc).

Major players such as center3 (stc) are leading the charge, with ambitious plans to increase data center capabilities to around 125 MW by 2025-2026. Gulf Data Hub is another key operator expanding its presence, with new facilities underway in Dammam and proposals for additional centers in Riyadh and Jeddah.

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Enhancements in submarine cables and inland connectivity are also underway. The 2Africa cable project, a collaboration between companies like China Mobile, Meta, and center3 (stc), is set to be the longest of its kind and will link Saudi Arabia to various countries by 2024.

Moreover, the surge in 5G deployment and smart city development is expected to increase data traffic, driving the need for more data center infrastructure. In line with this, Saudi Call signed an MoU with Shanghai Lumaotong Group (LTG) and China Mobile International Limited (CMI) to develop data center facilities in September 2023.

The research provides comprehensive market size data, including investment, area, power capacity, and revenue forecasts for Saudi Arabia’s colocation market. It evaluates investments by colocation, hyperscale, and enterprise operators and offers detailed analysis and predictions for the market’s growth trajectory.

  • Snapshot of existing and upcoming third-party data center facilities in Saudi Arabia
  • Facilities Covered (Existing): 24
  • Facilities Identified (Upcoming): 37
  • Coverage: 8 Cities
  • Comparison of Existing vs. Upcoming (Area and IT Load Capacity)
  • Analysis of Colocation Market Revenue & Forecast (2023-2029)
  • Breakdown of Wholesale vs. Retail Colocation Revenue (2023-2029)
  • Overview of Retail and Wholesale Colocation Pricing
  • Classification of investments into IT, power, cooling, and general construction services, with future forecasts.
  • Market trends, growth rate, opportunities, constraints, and market prospects
  • Profiles of prominent market participants

Key market insights include:

  • Report Page Count: 129
  • Forecast Period: 2023 – 2029
  • Market Value (2023): $1.79 Billion
  • Projected Market Value (2029): $3.19 Billion
  • Annual Growth Rate: 10.1%
  • Regional Focus: Saudi Arabia

This report covers a range of topics:

  • Existing & Upcoming Third-Party Data Centers in Saudi Arabia
  • Investment Opportunities in Saudi Arabia
  • Data Center Colocation Market in Saudi Arabia
  • Market Dynamics and Segmentation
  • Tier Standards Investment
  • Geography
  • Key Market Participants

A variety of companies are mentioned in the report, including:

  • Arista Networks, Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise
  • Huawei Technologies, IBM, Inspur, Lenovo, NetApp
  • Construction and infrastructure providers like ALEC Data Center Solutions, Al-Latifia Trading and Contracting, Ashi & Bushnag, and many others
  • Equipment and service providers such as ABB, Airedale, Alfa Laval, Canovate, Caterpillar
  • Major data center operators like center3 (stc), Google, Gulf Data Hub, Mobily, Oracle
Tags: Colocation ServicesData CentersMarket researchsaudi arabiaTechnology Infrastructure
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