Rapid Expansion of Saudi Data Centers

Insights into Saudi Arabia's Data Center Boom

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.

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.

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