Saudi Data Center Investments Top SAR 16 Billion

Investments in Saudi Arabia's data center sector have surpassed SAR 16 billion since the launch of Vision 2030, with more than 60 operational data centers now running nationwide under the supervision of the Ministry of Communications and Information Technology.

These centers have been developed by more than 20 companies. As of 2024, national data center capacity stood at roughly 148 megawatts. A government plan valued at around USD 18 billion (about SAR 67.5 billion) aims to expand total capacity to 1,300 megawatts by 2030, a major leap driven largely by artificial intelligence and high-performance computing workloads.

Riyadh and NEOM are emerging as the primary investment hubs, together accounting for more than 75% of the country's planned future data center capacity. Sector revenues are projected to reach around USD 2.8 to 3.0 billion by 2030, while the broader market is expected to keep growing steadily over the coming years.

Why it matters

Colocation facilities — where companies rent space for their servers — currently account for more than half of sector revenues, at around 53 to 56% in 2025. Self-build hyperscale data centers, meanwhile, are recording the fastest growth as demand for AI and GPU workloads accelerates.

For residents and businesses across the Kingdom, this expansion means faster and more reliable digital services, stronger local hosting for data, and a growing base of technology jobs. As more capacity comes online in Riyadh, NEOM and beyond, Saudi Arabia is positioning itself as a regional hub for cloud and computing infrastructure, a cornerstone of the wider digital economy under Vision 2030.

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