Saudi Arabia ranks 2nd globally in data center market attractiveness

RIYADH — Saudi Arabia has ranked second globally, after the United States, among the most attractive markets for data centers. This is a remarkable achievement that reflects the Kingdom’s growing position in digital infrastructure and its rapid expansion in a market increasingly driven by artificial intelligence and cloud computing.According to a Bloomberg analysis, Saudi Arabia secured second place globally in data center market attractiveness. The analysis also indicated that power availability and land enablement together account for 58 percent of market attractiveness for data center projects. At the same time, 22.8 gigawatts of new capacity are currently under development worldwide and are expected to come online within the next three years, increasing the value of markets capable of absorbing this growth at scale and with speed.This progress builds on the rapid expansion of the data center sector in the Kingdom, where operational capacity increased from 68 megawatts in 2021 to 440 megawatts in 2025—representing nearly sixfold growth over four years. This reflects the accelerated development of digital infrastructure and the growing attractiveness of the Saudi market in this critical sector.The sector continued its growth in the first quarter of 2026, with capacity rising to 467 megawatts—an increase of more than 6 percent since the beginning of the year—highlighting the sustained expansion of a market that has become a key driver of digital infrastructure and the data-driven economy powered by cloud computing and artificial intelligence.Today, Saudi Arabia hosts more than 60 data centers across multiple regions, reflecting the expansion of the market, the strengthening of its operational base, and its ability to meet the growing demand for digital services, cloud computing, and AI applications. This growth is further supported by the Kingdom’s geographic depth, which provides developers and operators with greater flexibility in site distribution and phased expansion, in addition to its strategic location linking Asia, Europe, and Africa—enabling access to broad markets from a single hub.Commenting on this progress, Eng. Bassam Al-Bassam, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology said: “This reflects the Kingdom’s growing position in the data center sector and confirms that the progress achieved in digital infrastructure, power availability, development speed, and operational readiness has positioned Saudi Arabia among the most capable markets in attracting high-quality investments in this sector.”He said that this progress strengthens the confidence of global investors in the Saudi market and supports the Kingdom’s positioning as a global hub for digital infrastructure and artificial intelligence.This achievement gains further significance as Saudi Arabia ranked first globally in the Digital Readiness Framework 2025, scoring 94 out of 100 in the “very high” category, ahead of Finland, Germany, the United Kingdom, Norway, and France. This reflects the maturity of the regulatory environment, digital governance, and institutional efficiency—factors that are increasingly critical in a sector that depends on regulatory clarity, operational reliability, and speed of execution.This position is further reinforced by an advanced digital ecosystem, including 99 percent internet penetration, fiber coverage reaching 5.8 million homes, and a technology market exceeding SR199 billion in 2025. In addition, local internet traffic through the Saudi Internet Exchange surpassed 2.462 terabits per second in the same year, enhancing the readiness and reliability of the digital environment supporting data center operations.This achievement underscores that Saudi Arabia is not only keeping pace with growing demand for digital infrastructure but is also advancing in building the foundational capabilities required for the next phase of the digital economy. As global pressures on power and land intensify in traditional markets, Saudi Arabia is emerging as a destination that combines capacity, readiness, flexibility, and scalability—further strengthening its position as a rising global hub in the data center race.