Saudi Arabia Ranks Second Globally in Data Center Market Attractiveness
The Kingdom's growing position reflects accelerating digital infrastructure development and cloud computing expansion.
RIYADH: Saudi Arabia has secured the second spot globally, trailing only behind the US, as the most attractive market for data centers.
This achievement highlights the country's increasing significance in the realm of digital infrastructure, which is rapidly expanding due to advancements in artificial intelligence (AI) and cloud computing.According to a Bloomberg analysis, Saudi Arabia's high ranking in data center attractiveness can be attributed to factors such as power availability and land enablement, collectively accounting for 58 percent of market attractiveness.
As the demand for new capacity continues to grow, with an estimated 22.8 gigawatts currently under development worldwide set to come online within the next three years, markets capable of accommodating this growth at scale and speed have become increasingly valuable.The data center sector in Saudi Arabia has witnessed remarkable growth over recent years.
The operational capacity increased from 68 megawatts (MW) in 2021 to 440 MW in 2025, marking a nearly sixfold expansion within just four years.
This upward trajectory continued into the first quarter of 2026, with capacity rising to 467 MW — representing an increase of more than 6 percent since the beginning of the year.
These figures underscore the sustained growth and development of Saudi Arabia's digital infrastructure market, which plays a pivotal role in driving the data-driven economy powered by cloud computing and AI.Today, the Kingdom hosts over 60 data centers spread across multiple regions, showcasing its expanding market presence, strengthening operational base, and capability to meet the burgeoning demand for digital services, cloud computing, and AI applications.
Furthermore, Saudi Arabia's geographical advantage provides developers and operators with greater flexibility in site distribution and phased expansion, as well as a strategic location linking Asia, Europe, and Africa — offering access to extensive markets from a single hub.Bassam Al-Bassam, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology, commented on this progress: "This reflects Saudi Arabia's burgeoning position in the data center sector, signifying that advancements made in digital infrastructure, power availability, development speed, and operational preparedness have positioned the Kingdom among the foremost capable markets in attracting high-quality investments in this sphere".
He added that this achievement strengthens global investors' confidence in the Saudi market and supports the Kingdom's aim to become a global hub for digital infrastructure and AI.Saudi Arabia's success in achieving first place globally in the Digital Readiness Framework 2025, with a score of 94 out of 100 in the "very high" category, further validates its strong regulatory environment, digital governance, and institutional efficiency.
These factors have become increasingly vital as the sector relies on regulatory clarity, operational reliability, and swift execution.Additionally, Saudi Arabia boasts an advanced digital ecosystem, including near-universal internet penetration (99 percent), fiber coverage extending to 5.8 million homes, and a technology market worth more than SR199 billion ($53 billion) in 2025.
Moreover, local internet traffic processed through the Saudi Internet Exchange reached 2.462 terabits per second in the same year, enhancing the reliability of the digital environment supporting data center operations.Overall, this achievement demonstrates that Saudi Arabia not only keeps pace with growing demand for digital infrastructure but also progresses in developing foundational capabilities required for the next phase of the digital economy.As traditional markets face mounting pressures concerning power and land resources, Saudi Arabia emerges as an attractive destination that offers capacity, preparedness, adaptability, and scalability — further solidifying its position as a rising global player in the data center sector.
This achievement highlights the country's increasing significance in the realm of digital infrastructure, which is rapidly expanding due to advancements in artificial intelligence (AI) and cloud computing.According to a Bloomberg analysis, Saudi Arabia's high ranking in data center attractiveness can be attributed to factors such as power availability and land enablement, collectively accounting for 58 percent of market attractiveness.
As the demand for new capacity continues to grow, with an estimated 22.8 gigawatts currently under development worldwide set to come online within the next three years, markets capable of accommodating this growth at scale and speed have become increasingly valuable.The data center sector in Saudi Arabia has witnessed remarkable growth over recent years.
The operational capacity increased from 68 megawatts (MW) in 2021 to 440 MW in 2025, marking a nearly sixfold expansion within just four years.
This upward trajectory continued into the first quarter of 2026, with capacity rising to 467 MW — representing an increase of more than 6 percent since the beginning of the year.
These figures underscore the sustained growth and development of Saudi Arabia's digital infrastructure market, which plays a pivotal role in driving the data-driven economy powered by cloud computing and AI.Today, the Kingdom hosts over 60 data centers spread across multiple regions, showcasing its expanding market presence, strengthening operational base, and capability to meet the burgeoning demand for digital services, cloud computing, and AI applications.
Furthermore, Saudi Arabia's geographical advantage provides developers and operators with greater flexibility in site distribution and phased expansion, as well as a strategic location linking Asia, Europe, and Africa — offering access to extensive markets from a single hub.Bassam Al-Bassam, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology, commented on this progress: "This reflects Saudi Arabia's burgeoning position in the data center sector, signifying that advancements made in digital infrastructure, power availability, development speed, and operational preparedness have positioned the Kingdom among the foremost capable markets in attracting high-quality investments in this sphere".
He added that this achievement strengthens global investors' confidence in the Saudi market and supports the Kingdom's aim to become a global hub for digital infrastructure and AI.Saudi Arabia's success in achieving first place globally in the Digital Readiness Framework 2025, with a score of 94 out of 100 in the "very high" category, further validates its strong regulatory environment, digital governance, and institutional efficiency.
These factors have become increasingly vital as the sector relies on regulatory clarity, operational reliability, and swift execution.Additionally, Saudi Arabia boasts an advanced digital ecosystem, including near-universal internet penetration (99 percent), fiber coverage extending to 5.8 million homes, and a technology market worth more than SR199 billion ($53 billion) in 2025.
Moreover, local internet traffic processed through the Saudi Internet Exchange reached 2.462 terabits per second in the same year, enhancing the reliability of the digital environment supporting data center operations.Overall, this achievement demonstrates that Saudi Arabia not only keeps pace with growing demand for digital infrastructure but also progresses in developing foundational capabilities required for the next phase of the digital economy.As traditional markets face mounting pressures concerning power and land resources, Saudi Arabia emerges as an attractive destination that offers capacity, preparedness, adaptability, and scalability — further solidifying its position as a rising global player in the data center sector.
