Saudi Arabia has become one of the world’s fastest-growing data centre markets, with live IT power increasing 57% between 2024 and 2026, according to Savills Research analysis of DC Byte data. The Kingdom ranks joint fourth globally with Finland for recent growth.
The expansion is being supported by Saudi Arabia’s Vision 2030 digital economy plans, rising AI adoption and growing demand for cloud infrastructure. It also comes as major technology companies and Saudi-backed entities invest in local computing capacity.
- Location: Saudi Arabia
- Sector: Data centres, cloud computing and artificial intelligence
- Status: Rapid market expansion
- Who is affected: Technology companies, cloud providers, AI developers and businesses
- Business impact: More local capacity for cloud and AI workloads
- What’s next: New hyperscale facilities, AI infrastructure and cloud services
Saudi Arabia is now one of the world’s fastest-growing data centre markets, with live IT power rising 57% between 2024 and 2026, according to Savills Research analysis of DC Byte data.
The Kingdom ranks joint fourth globally with Finland for recent growth, behind Malaysia and Indonesia. The expansion is being driven by rising demand for artificial intelligence and cloud services, alongside Saudi Arabia’s wider plans to build a digital economy under Vision 2030.
For businesses, the growth means more computing capacity is being developed inside the Kingdom, including infrastructure designed to support high-demand AI workloads.
Why is Saudi Arabia’s data centre market growing so quickly?
Saudi Arabia’s data centre expansion is part of a much larger digital infrastructure push.
According to Saudi government data published by the National Platform, the Kingdom’s data centre capacity increased from 68MW in 2021 to more than 467MW in the first quarter of 2026.
Investment in data centres and digital infrastructure has also exceeded SAR56.2 billion, with the sector growing more than sixfold since the launch of Vision 2030.
The government says the expansion is supported by Saudi Arabia’s reliable energy supply, availability of land and strategic location, all of which are important factors for large-scale data centre development.
The growth is also not limited to one city. Riyadh, Jeddah and Dammam are among the main data centre locations tracked in Saudi Arabia, according to DC Byte.
How is AI increasing demand for data centres?
Artificial intelligence is changing the type and scale of infrastructure that technology companies need.
AI training and deployment require significant computing power, while businesses also need storage, networking and reliable cloud services to run AI applications.
That is creating demand for facilities capable of supporting high-density computing and large-scale workloads.
Saudi Arabia is responding by creating dedicated financing mechanisms for AI infrastructure. The National Infrastructure Fund has introduced an AI Data Center Financing Program to support the development of AI-ready facilities.
Eligible projects generally need at least 10MW of IT load, Tier III or higher standards and connectivity to the national fibre network and global subsea cable infrastructure.
This is important because the Kingdom is not only adding conventional enterprise data centres. It is also preparing infrastructure for the much larger computing requirements associated with AI.
What is Saudi Arabia planning for hyperscale AI infrastructure?
Saudi Arabia’s AI infrastructure plans include major hyperscale projects.
In January 2026, HUMAIN and the National Infrastructure Fund announced a strategic financing framework of up to $1.2 billion to support AI and digital infrastructure projects in the Kingdom.
The framework includes non-binding financing terms for the development of up to 250MW of hyperscale AI data centre capacity.
The planned capacity would give Saudi Arabia additional infrastructure for large-scale AI computing as demand grows.
The development is also part of a wider effort to attract technology investment and establish the Kingdom as a major location for AI development in the region.
When will Microsoft’s Saudi data centre region launch?
Microsoft is another major technology company expanding its infrastructure in Saudi Arabia.
The company confirmed on August 31 that its Saudi Arabia East datacentre region will be available to customers in November 2026.
Located in the Eastern Province, the region will include three Azure Availability Zones and allow government and private-sector organisations to run eligible cloud and AI workloads locally.
Microsoft said the infrastructure will provide local data residency, enterprise-level security, high availability and low-latency access to cloud and AI services.
Microsoft also cited an IDC study estimating that the company, its partners and customers using Microsoft cloud technologies could generate $44 billion in new revenue for the Saudi economy between 2027 and 2030. The study also estimates around 100,000 new jobs across the Saudi economy during that period. These are IDC estimates sponsored by Microsoft, not government forecasts.
How does Saudi Arabia’s data centre growth compare globally?
Saudi Arabia ranks joint fourth globally with Finland for growth in live IT power between 2024 and 2026, according to the Savills Research analysis supplied for the latest market ranking.
The 10 fastest-growing markets listed are:
- Malaysia
- Indonesia
- Finland
- Saudi Arabia
- The Philippines
- Denmark
- India
- Australia
- France
- Portugal
The ranking measures recent growth rather than total data centre capacity.
That distinction is important. The United States remains far larger in terms of overall live IT power, while Saudi Arabia is still an emerging market by total capacity.
However, its rapid growth rate shows how quickly the Kingdom is building infrastructure to meet future digital demand.
Saudi Arabia’s data centre expansion matters to the UAE and the wider GCC because the region’s technology competition is increasingly focused on infrastructure.
For UAE businesses operating across the Gulf, additional Saudi capacity could support cloud services, AI applications, data-intensive operations and regional technology partnerships.
The growth also creates opportunities for data centre operators, cloud providers, construction companies, energy businesses, connectivity providers and technology specialists.
For Saudi Arabia, the bigger objective is to create the infrastructure needed to move AI from experimentation into large-scale commercial use.
FAQs
Why is Saudi Arabia becoming a major data centre market?
Saudi Arabia is expanding its data centre infrastructure to meet rising demand for AI, cloud computing and digital services. Government-backed investment under Vision 2030 is also supporting the sector.
How much has Saudi Arabia’s data centre capacity grown?
Saudi Arabia’s data centre capacity increased from 68MW in 2021 to more than 467MW in the first quarter of 2026, according to Saudi government data.
What is Saudi Arabia’s global data centre ranking?
Saudi Arabia ranks joint fourth globally with Finland for recent growth in live IT power between 2024 and 2026, according to Savills Research analysis of DC Byte data.
When will Microsoft’s Saudi Arabia East data centre open?
Microsoft says its Saudi Arabia East datacentre region in the Eastern Province will become available to customers in November 2026.
How much AI data centre capacity is HUMAIN planning?
A financing framework announced by HUMAIN and the National Infrastructure Fund covers the development of up to 250MW of hyperscale AI data centre capacity.
Saudi Arabia’s 57% increase in live data centre IT power highlights the speed of the Kingdom’s digital infrastructure expansion. With government support, new AI-focused financing and major cloud investments from companies such as Microsoft, Saudi Arabia is building the capacity needed for the next stage of AI and cloud growth.
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