Saudi Arabia Data Center Colocation Market

The data center colocation market in Saudi Arabia is projected to grow from USD 949.6 million in 2025 to USD 1,982.6 million by 2030 at a CAGR of 15.9%. Growth is supported by the accelerated adoption of cloud services across large enterprises and government-led digital transformation initiatives. Enterprise IT modernization is increasing the demand for high-density infrastructure that can support AI and HPC workloads reliably. Riyadh and Jeddah are emerging as primary deployment hubs due to their strong connectivity and presence of hyperscalers. Enterprises are adopting hybrid and multicloud architectures, which is increasing demand for low-latency interconnection between colocation campuses and cloud regions. National data localization requirements and sovereignty mandates are reinforcing demand for compliant and locally hosted colocation solutions.

Across Saudi Arabia, leading providers such as STC (Saudi Arabia), Mobily (Saudi Arabia), and Salam (Saudi Arabia) are expanding their footprints to support sovereign cloud initiatives, mission-critical hosting, and AI-ready deployments. Operators in the Saudi Arabia data center colocation market are prioritizing high-power facility designs and advanced cooling systems to meet rising performance expectations. Investment decisions are increasingly influenced by grid readiness, regulatory alignment, and proximity to hyperscale cloud regions within the Kingdom. These factors are shaping long-term deployment strategies as enterprises demand resilient, compliant, and scalable colocation environments across Saudi Arabia.

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In May 2025, NTT Data (Japan) announced plans to launch and list a data center real estate investment trust (REIT) on the Singapore Stock Exchange. This REIT will be seeded with six colocation facilities across the US, Europe, and Singapore, totaling over 41,000 square meters and approximately 80 megawatts. The initiative aims to promote growth in NTT’s data center business and maximize corporate value.

EQUINIX

Equinix is a global real estate investment trust focused on interconnection-led colocation and data center services across major international markets. The company operates more than 260 IBX data centers, spanning 33 countries, and supports the enterprise, cloud, and network connectivity requirements of its customers. Its strategy emphasizes software-defined interconnection to enable scalable architectures and access to ecosystems. Equinix provides carrier-neutral environments with connectivity to over 3,000 cloud and network providers. The company continues investing in high-density cooling, sustainability programs, and AI-enabled monitoring. Recent xScale developments support high-power deployments and strengthen hybrid multicloud infrastructure capabilities for large enterprise customers.

DIGITAL REALTY

Digital Realty is a global provider of carrier-neutral data centers and interconnection services, operating more than 300 facilities across over 25 countries. Its strategy is built around PlatformDIGITAL, which supports modular, AI-ready data halls, build-to-suit campuses, and renewable energy sourcing. The company’s strengths include scalable, high-density power, strong interconnection frameworks, and a focus on sustainability through the use of green energy and carbon-neutral designs. In July 2024, Digital Realty acquired a colocation data center campus in Slough, UK, for USD 200 million, strengthening its presence in the London market. The acquisition expands access to interconnected services and supports rising regional demand for digital infrastructure. Digital Realty continues to expand geographically through acquisitions while vertically integrating power, cooling, and interconnection layers to deliver reliable, compliant, and energy-efficient colocation services globally.

Market Ranking

In 2024, the data center colocation market in Saudi Arabia remained moderately consolidated, led by STC, Mobily, and Salam. These operators together accounted for an estimated 55–60% of national capacity, supported by extensive network footprints and strong enterprise relationships. Continued investment in multi-megawatt facilities strengthened competitive positioning and improved readiness for large-scale enterprise and hyperscale workloads. STC expanded hyperscale-ready campuses in Riyadh and Jeddah to address the growing demand for AI-optimized deployments. The company added AI-optimized data halls and enhanced liquid cooling readiness to support GPU-intensive training and inference workloads. Mobily increased wholesale colocation capacity and strengthened cloud on-ramps through partnerships with global hyperscale cloud providers. Salam accelerated expansion across the enterprise and government segments, focusing on higher interconnection density and secure hosting environments.

Related Reports:

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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