Saudi Arabia's Data Center Market Expands Rapidly

Saudi Arabia is becoming one of the world's fastest-scaling data center markets, with its live IT power capacity increasing by 57% since 2024. This rapid expansion places the Kingdom joint fourth globally alongside Finland, as investment in digital infrastructure accelerates in line with the ambitions of Saudi Arabia's Vision 2030. According to Savills' Impacts global thought leadership program, the Kingdom is ranked among the world's top 10 emerging data center markets, joined by other EMEA markets such as Finland, Denmark, France, and Portugal. Despite strong growth rates, the combined data center capacity of these emerging markets remains relatively small compared to established global hubs, highlighting significant potential for further expansion in Saudi Arabia. Harry Goodson Wickes, Head of KSA & Northern Gulf Offices at Savills, noted that the expansion reflects a broader transformation in the Kingdom's approach to developing its digital economy. He stated that investors are taking note, and momentum is expected to continue as sovereign investment and hyperscaler capacity both scale over the next few years. The growth is supported by government-backed digital economy initiatives and rising demand for artificial intelligence and cloud infrastructure. The Kingdom is expanding the power, land, and connectivity required to accommodate hyperscale and enterprise data center operators, as digital infrastructure becomes an increasingly important component of its economic diversification strategy. However, the rapid growth comes from a comparatively small base, with the United States and China remaining the largest data center markets globally. Savills' data center advisory team continues to monitor capacity, power, and land availability across Saudi Arabia and the wider Gulf.