The Saudi Arabia data center server market reached a value of USD 715 million in the previous year, and it is further projected to register a CAGR of 9.6% 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.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Saudi Arabia data center rack 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 above 1,70,000 units by 2029. Riyadh is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 4 submarine cable systems connecting Saudi Arabia, and many are under construction. In August 2022, STC announced the opening of the Saudi Vision Cable, the Red Sea's first high-speed cable, via a landing station in Jeddah.
The Saudi Arabia data center server market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as Dell Inc., International Business Machines (IBM) Corporation, Hewlett Packard Enterprise (HPE), Lenovo Group Limited, and Cisco Systems Inc., currently dominate the market.
In August 2023, Dell, Intel, and VMware offered an updated ReadyNode infrastructure solution called vSAN 8.0 with Express Storage Architecture (ESA). This release includes performance and efficiency improvements to meet customers' evolving data center needs.
In August 2023, Hewlett Packard Enterprise announced that global IT services provider phoenixNAP is expanding its bare metal cloud platform with cloud-native HPE ProLiant RL300 Gen11 servers powered by energy-efficient processors from Ampere Computing.
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