Saudi Arabia becomes 2nd most attractive data center market globally

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GHADA.ISMAIL
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May 3, 2026
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Riyadh – Sharikat Mubasher: Saudi Arabia has advanced to second place globally in data center attractiveness, reinforcing its position as a rising hub in the global digital economy, according to a recent analysis by Bloomberg.

The Kingdom ranked just behind the United States as one of the most attractive markets for data center investments, a sector increasingly tied to the expansion of artificial intelligence and cloud computing. The report attributes this progress to key enablers, particularly energy availability and land access, which together account for around 58% of overall market appeal.

Saudi Arabia’s data center capacity has grown significantly in recent years, increasing from 68 megawatts in 2021 to 440 megawatts in 2025, before reaching 467 megawatts in the first quarter of 2026—marking steady growth of over 6% since the start of the year. The Kingdom now hosts more than 60 data centers across multiple regions.

This expansion is supported by a robust digital ecosystem, including internet penetration of 99%, fiber connectivity reaching 5.8 million homes, and a technology market valued at over SAR 199 billion. Local internet traffic has also surpassed 2.4 terabits per second, reflecting growing demand for digital services.

Saudi Arabia’s strategic geographic location, connecting Asia, Europe, and Africa, continues to enhance its appeal to global investors, positioning the Kingdom as a key player in the future of digital infrastructure.


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