3 Tailwinds That Will Make KSA Data Center And Cloud Services Market Reach $2.0 Bn By 2026. Will KSA Be Able To Achieve That Mark? – Ken Research

May 2023  

KSA Data Center industry grew at a CAGR of over 14% and generated almost 800 Mn in 2021, owing to increasing smartphone and internet penetration, as per the findings by Ken Research.

1. Saudi Arabia has the largest social media presence in the world, with almost 39 Mn mobile subscribers, mobile penetration stands at 11% of the total population.

KSA Data Center Market

With over 27 Mn Active Social Media Users, over 30 Mn YouTube Users (Most popular Platform), nearly 30% Active WhatsApp Users (Most Popular Messenger App) and almost 7% Year-on-year increase in mobile telecom subscriptions; KSA becomes the hub for the uplifting of data center companies in the country. Rising digital connectivity has been polishing the Data Centre industry in Saudi Arabia.

2. The Saudi Ministry of Communications and Information Technology (MCIT) has launched an $18 billion plan to build a network of large-scale data centers across the Kingdom.

KSA Data Center Market

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The Ministry of Communications plan includes the development of hyperscale data Centers to enable KSA to become a "computing powerhouse and the digital hub" for the region. In July 2021, Saudi Arabia launched an $18 Bn strategy to establish a network of large-scale data Centers across the country. Local firms Gulf Data Hub, Al-Moammar Information Systems and Saudi FAS Holding comprise the first batch of investment partners. Moreover, in September 2021, the Kingdom of Saudi Arabia issued its Personal Data Protection Law to regulate the processing of personal data. The PDPL is the first federal, sector-agnostic data privacy legislation in Saudi Arabia. Organizations will be faced with significant changes to their operations to ensure compliance.

3. Number of Data Centers as of 2021 is 42; favourable geographical location and Rising infrastructure play major role in its development.

KSA Data Center Market

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The growing adoption of smart devices and increasing demand for analytics, cloud adoption, and the growth of wireless networking technologies have led several organizations in Saudi Arabia to invest in Big data and IoT technology. In addition to this Saudi Arabia enjoys a strategic location between Africa and APAC that can easily connect both the regions, which is benefiting the operators to invest in a submarine cable network passing through the country. Total number of Racks, 2021 is over 23,000; which is further expected to grow in the upcoming years.

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KSA Data Center Market

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