Saudi Arabia Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Saudi Arabia Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Saudi Arabia Data Center Market is projected to register a CAGR of 17.55%

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to reach 855 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 3.4 million sq. ft by 2029.
• Installed Racks: 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.
• DC Facilities: There are 12 colocation data center facilities in Saudi Arabia. Riyadh is the major hotspot in the country. 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: 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.

Saudi Arabia Data Center Market Trends

Tier 3 is the largest Tier Type

• 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 Overview

The Saudi Arabia Data Center Market is fairly consolidated, with the top five companies occupying 73.37%. The major players in this market are Electronia, ETIHAD ATHEEB TELECOMMUNICATION COMPANY, Etihad Etisalat Company (Mobily), Sahara Net and Saudi Telecom Company (sorted alphabetically).

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• The market estimate (ME) sheet in Excel format
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