The data center server market in Saudi Arabia is forecasted to generate USD 784.1 million in 2024 and is expected to grow to USD 1,368.0 million by 2030, registering a CAGR of 9.7% from 2024 to 2030. This growth is propelled by factors such as global digital cloud adoption, advancements in artificial intelligence and machine learning, accelerating digitalization, and the widespread adoption of 5G technology.
Saudi Arabia’s data centers are evolving, with servers being continuously improved to support efficient data processing. According to Ericsson, average mobile data traffic per smartphone in the region is expected to rise from 21 GB in 2023 to 56 GB by 2029, largely due to the expansion of 5G. By the end of 2020, Saudi Arabia launched 5G services in seven additional cities and provinces, bringing the total number to 51.
Key Insights:
- Rack Servers: Holding a 45% share in 2024, rack servers are popular for their compact design, ease of maintenance, and cost-effectiveness, making them ideal for small to medium enterprises (SMEs).
- Tower Servers: Growing at a CAGR of 10.0%, tower servers offer cost-effective solutions, quick cooling, easy upgrades, and minimal overheating, catering to diverse business needs.
- BFSI Sector: Accounting for 35% of the market share in 2024, the BFSI sector’s expansion is fueled by the adoption of cloud-based solutions that enhance data management and reliability.
- Healthcare Sector: Growing rapidly at a CAGR of 10.3%, the healthcare sector’s demand for secure storage has surged due to the widespread use of health wearables, generating significant data.
- Regional Insights: Riyadh, holding 40% of the market share in 2024, is the leading region with 14 data centers, followed by Dammam, which hosts five data centers contributing to Saudi Arabia’s data infrastructure.
