Saudi Arabia Emerges as Global Leader in Data Center Market Attractiveness
Saudi Arabia has secured the second spot worldwide—just behind the United States—among the most attractive markets for data centers. This milestone highlights the Kingdom’s rising influence in digital infrastructure and its rapid growth in a sector increasingly shaped by artificial intelligence and cloud computing.
A Bloomberg analysis attributes much of this appeal to key factors such as power availability and land readiness, which together make up 58% of a market’s attractiveness for data center development. With 22.8 gigawatts of new global capacity expected to come online within the next three years, markets capable of scaling quickly are becoming more valuable than ever.
Saudi Arabia’s progress is evident in its remarkable expansion. Operational data center capacity surged from 68 megawatts in 2021 to 440 megawatts in 2025—nearly a sixfold increase in just four years. Growth has continued into 2026, with capacity reaching 467 megawatts in the first quarter, marking a further 6% increase since the start of the year.
The Kingdom is now home to over 60 data centers across various regions, demonstrating its ability to meet rising demand for digital services, cloud computing, and AI applications. Its geographic scale allows for flexible site distribution and phased development, while its strategic location connects Asia, Europe, and Africa—making it an ideal hub for accessing multiple markets.
Artificial Intelligence
Eng. Bassam Al-Bassam, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology, emphasized that this achievement reflects Saudi Arabia’s strong capabilities in infrastructure, power supply, and operational readiness. He noted that these strengths are attracting high-quality global investments and reinforcing the Kingdom’s status as a leading destination for data center development.
This success is further supported by Saudi Arabia’s top global ranking in the Digital Readiness Framework 2025, where it scored 94 out of 100 in the “very high” category—surpassing countries such as Finland, Germany, the United Kingdom, Norway, and France. This reflects a mature regulatory environment, strong governance, and institutional efficiency—critical elements for a fast-moving, infrastructure-heavy sector.
Additional factors strengthening the Kingdom’s position include 99% internet penetration, fiber coverage reaching 5.8 million homes, and a technology market valued at over SAR 199 billion in 2025. Internet traffic through the Saudi Internet Exchange also exceeded 2.462 terabits per second, underscoring the robustness of the country’s digital ecosystem.
Altogether, these developments show that Saudi Arabia is not only keeping pace with global demand for digital infrastructure but is actively positioning itself for the future. As traditional markets face increasing constraints in power and land, the Kingdom stands out as a scalable, flexible, and investment-ready hub—solidifying its role as a rising leader in the global data center landscape.
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