Market Snapshot
The Saudi Arabia Data Center Market is segmented by hotspot (Riyadh), data center size (large, massive, medium, mega, small), tier type (Tier 1 and 2, Tier 3, Tier 4), and absorption (non-utilized, utilized). Key data points include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.
Market Overview
The Saudi Arabia Data Center Market is witnessing significant growth driven by the expansion of 5G coverage, increasing online purchases, and the growing adoption of digital applications among end-users. The construction of smart cities in Saudi Arabia is expected to further boost the demand for data centers, contributing to the rising IT load capacity and the need for more data storage space.
Key Market Trends
- Expansion of 5G Coverage: The rollout of 5G services across multiple cities and provinces in Saudi Arabia is driving data consumption, necessitating advanced data center infrastructure to manage the increased traffic.
- Increasing Online Purchases: The growing number of online shoppers is contributing to higher data traffic, requiring robust data center facilities to support e-commerce activities.
- Rising Adoption of Digital Applications: The widespread use of digital applications for various purposes, including streaming, gaming, and online transactions, is boosting the demand for data centers with higher IT load capacities.
Competitive Landscape
The Saudi Arabia Data Center Market is moderately consolidated, with key players actively expanding their facilities and enhancing service offerings. The market features a mix of local and international companies focusing on advanced data center solutions to cater to the growing digital needs of various industries.
Major Players
- ETIHAD ATHEEB TELECOMMUNICATION COMPANY: A leading telecommunications company in Saudi Arabia, providing comprehensive data center and cloud services to various sectors.
- Etihad Etisalat Company (Mobily): The leading player in the Saudi Arabian market, with multiple data centers offering high-capacity and reliable services.
- HostGee Cloud Hosting Inc.: A key provider of cloud hosting and data center solutions, catering to the diverse needs of businesses in Saudi Arabia.
- Saudi Telecom Company: A major telecommunications operator with extensive data center facilities and ongoing expansion plans to meet growing demand.
- SHABAKAH INTEGRATED TECHNOLOGY: Offers a wide range of data center services, including colocation, cloud, and managed services, catering to diverse business needs.
Recent Developments
- Saudi Telecom Company (STC): Announced the delivery of 16 facilities with 17,000 storing units across six cities, expected to reach a maximum capacity of 125MW.
- Saudi Telecom Company (STC): Separated its data center business into a new wholly-owned subsidiary, streamlining operations and enhancing service offerings.
- Detecon Al Saudia DETASAD Co. Ltd.: Awarded a contract to manage and operate SEC (Saudi Electricity Company) data centers in four cities for four years, boosting its presence in the market.