The report "Saudi Arabia Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/GenAI - Forecast to 2030", is projected to grow to USD 1,982.6 million by 2030 from USD 949.6 million in 2025, at a CAGR of 15.9%.
Browse 90 market data Tables and 24 Figures spread through 180 Pages and in-depth TOC on "Saudi Arabia Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/GenAI - Forecast to 2030"
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The market is expected to expand as Saudi enterprises accelerate cloud adoption, supporting scalable and resilient digital infrastructure nationwide. Organizations are migrating workloads into colocation facilities to improve uptime and meet regulatory hosting expectations. Government-led digital transformation programs are increasing the demand for locally hosted data platforms. National data residency policies are reinforcing investments in domestic colocation capacity. Energy efficiency objectives are encouraging providers to deploy modern cooling and optimized power systems. Rising hyperscale interest is also strengthening demand for carrier-neutral facilities across Riyadh, Jeddah, and emerging regional data center hubs.
By workload type, the general-purpose IT segment is expected to hold the largest market share during the forecast period.
General-purpose IT workloads drive colocation demand as enterprises migrate core business applications into professionally managed facilities. Deployments often include ERP platforms that support finance, supply chain, and operational reporting across distributed organizations. CRM systems and virtualization stacks are collocated to improve uptime and maintain governance controls. Hybrid IT strategies increase reliance on providers integrating public cloud and private cloud environments. Predictable power profiles and standardized infrastructure designs continue supporting widespread adoption across Saudi enterprise verticals.
By end user, the hyperscalers segment is expected to witness the fastest growth rate during the forecast period.
The hyperscalers segment is expected to be the fastest-growing end user in the Saudi Arabia data center colocation market during the forecast period. Growth is driven by increasing demand for large-scale capacity to support expanding cloud platforms and digital service ecosystems. Colocation enables hyperscalers to deploy automation-ready and energy-efficient infrastructure without owning or operating facilities. Leading cloud providers are relying on colocation partners to support burst workloads and accelerator-driven computing requirements. Standardized high-density deployments and strong interconnection ecosystems improve scalability and latency performance. Flexible contracts and regional coverage further strengthen colocation adoption as hyperscalers pursue modular expansion and sustainability objectives.
The major players in the data center colocation market in Saudi Arabia include Equinix (US), Digital Realty (US), NTT Data Corporation (Japan), Khazna Data Centers (UAE), STC Cloud (Saudi Arabia), Mobily (Saudi Arabia), NourNet (Saudi Arabia), Sahara Net (Saudi Arabia), and Gulf Data Hub (Saudi Arabia).
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