Saudi Arabia’s data center market is expanding rapidly and is projected to reach 854.81 MW by 2029. This growth is driven by multi-billion-dollar investments in AI-ready infrastructure, cloud computing, and digital transformation initiatives. Major data center projects in Saudi Arabia, such as the Desert Dragon Data Centers by ICS Arabia, Neom’s DataVolt facility, and Ezditek RUH01 Data Center, are shaping the Kingdom’s digital infrastructures.

Data center companies in Saudi, including global giants Amazon Web Services (AWS), Microsoft, and DataVolt, alongside local players like ICS Arabia, are investing heavily in AI-driven data centers. Telecom leaders STC and Tawal are continuing to expand their digital infrastructure. Currently, 12 colocation data center facilities operate across the Kingdom, supporting hyperscalers, enterprises, and cloud providers. 

In this article, we explore the top seven data center projects in Saudi Arabia that are set to redefine the Kingdom’s IT landscape and accelerate its transition into a global digital powerhouse.

List of Top Data Center Projects In Saudi Arabia

Amazon Web Services (AWS) Data Center in Saudi Arabia

Amazon Web Services (AWS) has announced plans to develop a new AWS infrastructure region in Saudi Arabia in March 2024. With an estimated investment of over USD 5.3 billion (approximately 19.88 billion Saudi riyals), the data center project is scheduled for completion in 2026. 

The project aims to establish in-country data centers that will support cloud computing services for businesses, startups, and enterprises across various industries in the Kingdom of Saudi Arabia.

The AWS infrastructure region will feature multiple data centers, strategically designed to support cloud services for sectors including healthcare, education, finance, and gaming. The project will enhance Saudi Arabia’s digital ecosystem, providing low-latency cloud computing capabilities and supporting compliance with local data regulations.

The AWS infrastructure development initiative aligns with Saudi Arabia’s Vision 2030, which ensures that organizations have access to secure, scalable, and locally hosted cloud solutions. AWS joins other global technology firms, including Microsoft, Huawei, and Oracle, in expanding cloud infrastructure within the Kingdom that is aligned with digital transformation and economic diversification.

Microsoft Data Center in Saudi Arabia

In December 2024, Microsoft completed three data centers and Azure Availability Zones in the Eastern Province, with full operational launch expected by 2026. This initiative is part of Microsoft's broader USD 2.1 billion investment in Saudi Arabia’s cloud infrastructure. The region is set to offer enterprise-grade cloud solutions with high-speed latency, data residency, and privacy standards. 

Initially announced at LEAP 2023, the project is part of Microsoft's USD 60 billion global investment in AI and cloud infrastructure for 2024. The data center project is located in Saudi Arabia’s largest province and the center of the national energy industry. Azure currently powers key Saudi initiatives such as SDAIA’s Arabic LLM, ‘ALLaM,’ and the Ministry of Education’s Madrasati platform.

Microsoft is also investing in human capital to train over 100,000 Saudi professionals in AI skills by 2025 through the Microsoft AI Academy. One of the largest data center projects in Saudi Arabia was developed in collaboration with the Saudi Ministry of Communications and Information Technology (MCIT). Microsoft and MCIT have also announced plans for a Centre of Excellence to advance AI and cloud computing capabilities in the Kingdom.

DataVolt and Neom Data Center Project Phase 1

In January 2025, NEOM and DataVolt signed a landmark agreement to develop a large-scale, sustainable data center in Oxagon, northwest Saudi Arabia. The project will be completed in multiple phases, with an initial USD 5 billion investment and potential further expansions. The 1.5-gigawatt facility will integrate advanced computing technologies and energy-efficient architectures to minimize environmental impact.

As part of the agreement, Oxagon will lease land to DataVolt and provide infrastructure support to ensure seamless operations. The data center will run entirely on renewable energy, incorporating advanced cooling technologies to achieve net-zero emissions. This initiative addresses global challenges related to data center energy consumption.

The facility will be located on the Red Sea coast and benefit from direct access to sub-sea fiber cables, cost-effective renewable energy, and a growing industrial ecosystem. The project is designed to align with Oxagon’s vision for industrial innovation, and phase 1 is expected to be operational by 2028.

ICS Arabia's Desert Dragon Data Centers

In November 2024, ICS Arabia officially commenced construction on the Desert Dragon data center, one of the large-scale data infrastructure projects in the Middle East. The project, developed through a joint venture with China Mobile International (CMI) and Shanghai-based Lumaotong Group (LMT), has a total capacity of 187 MW and represents USD 1.90 billion investment in Saudi Arabia over three years.

The data centers will be built in multiple phases across Riyadh, Jeddah, Dammam, and NEOM. They will offer Tier III and IV facilities with advanced cooling technologies and scalable rack capacities ranging from 2 kW to 100 kW.

The first phase, a 65 MW Tier III data center in Riyadh, is expected to be operational by March 2026. The second phase, a 50 MW facility in Jeddah, will begin construction in February 2025, with an expected completion in late 2026. The final phase, a 72 MW data center, will begin construction in September 2025 in Dammam and NEOM. These facilities will cater to global enterprises with services, including cloud hosting and artificial intelligence applications.

The Desert Dragon Data Centers are strategically located in MODON and are designed for high energy efficiency and intelligent operations. CMI will collaborate on the design, construction, and management of these data centers, ensuring they align with global standards for sustainability and innovation.

Ezditek RUH01 Data Center

Ezditek has launched its flagship data center, RUH01, in Riyadh. The data center project is located within Princess Nourah Bint Abdulrahman University (PNU) on a 35,000+ sqm plot. The facility has a maximum capacity of 24 MW and will provide a sustainable and scalable foundation for enterprises, cloud providers, and hyperscalers looking to establish operations in Saudi Arabia. The facility is set to go live in Q1 2026.

Strategically positioned in the Saudi central region, RUH01 will offer direct access to major carriers, enabling seamless connectivity for businesses and government entities. The data center is expected to reach 100% of public and enterprise customers in the region. 

The data center delivers ultra-low latency, reaching 90% of the Saudi population within 25 milliseconds. Additionally, it will host the Saudi Arabian Internet Exchange (SAIE), providing high-speed connectivity exceeding 100 Gbps to enhance content localization and reduce latency.

Tawal & 5SKYE Edge AI Micro Data Centers

Tawal, a Saudi ICT infrastructure company, is developing next-generation 5G AI micro edge data centers in Saudi Arabia in partnership with 5SKYE. Backed by the Ministry of Communications and Information Technology, the project aims to enhance real-time data processing through AI-driven edge computing, supporting digital transformation across various industries.

The micro-edge data centers will provide scalable AI-driven computing solutions for sectors such as public safety, logistics, retail, and industrial automation. Key applications include IoT-driven CCTV AI analytics, digital advertising, and edge computing/MEC. The infrastructure will integrate Tawal’s telecommunications network with 5SKYE’s edge AI technology to optimize data processing and connectivity.

DataVolt - Modon AI-Ready Data Centre in Riyadh

DataVolt, one of the leading digital infrastructure developers, has secured a land lease agreement with the Saudi Authority for Industrial Cities and Technology Zones (MODON) to develop an AI-ready data center in Riyadh. The agreement was signed in February 2025 and the facility will be constructed on a 55,000 square meter plot within the First Technology Park in eastern Riyadh.

The data center facility is designed to support advanced AI processing and will cater to the growing demand from hyperscalers, cloud service providers, and enterprises across Saudi Arabia. 

The project will incorporate energy-efficient technologies, innovative cooling systems, and circular economy principles to enhance sustainability and minimize environmental impact. The development is part of DataVolt’s broader USD 5 billion investment in Saudi Arabia’s digital infrastructure.

Saudi Arabia's Growing Data Center Market

Saudi Arabia is not just rapidly growing its data center market, but it's also becoming a dominant player in the global data center industry. The growth is majorly driven by digital transformation initiatives, AI integration, and cloud computing advancements. 

The Kingdom's thriving digital economy, supported by favorable government policies, competitive electricity tariffs, and a strong IT infrastructure, is making a significant impact on the global digital landscape.

According to Blackridge Research’s Saudi Arabia Data center project database, the market is expected to grow at a CAGR of approximately 8.1% from 2024 to 2029, reaching an estimated USD 2.3 billion. This growth is fueled by the expansion of 5G networks, increasing demand for AI-driven data processing, and the rising adoption of cloud services. Key cities such as Riyadh, Jeddah, Dammam, and Neom are emerging as major data center hubs.

List of Data Center Companies in Saudi Arabia

Conclusion

Saudi Arabia is set to become one of the largest data center hubs in the world. This is accelerated by large-scale investments in cloud computing, AI-ready infrastructure, and digital transformation initiatives. The Kingdom's data center market, projected to reach 854.81 MW by 2029, is attracting global technology giants like AWS, Microsoft, and DataVolt, alongside local telecom and infrastructure players such as STC, Tawal, and ICS Arabia.

As new projects emerge across key locations like Riyadh, Jeddah, Dammam, and Neom, Saudi Arabia is positioning itself as a critical player in the global digital economy. These new data centers will provide cutting-edge cloud services, enhance connectivity, and support AI-driven applications, further advancing Saudi Arabia's Vision 2030’s digital ambitions.

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