Saudi Arabia has emerged as one of the world’s most attractive markets for data centers, ranking second globally after the United States. This milestone reflects the Kingdom’s accelerating role in digital infrastructure and its rapid growth in a sector increasingly driven by artificial intelligence and cloud computing.

According to a Bloomberg analysis, Saudi Arabia secured this global ranking based on several key factors shaping data center investment. Notably, power availability and land access together account for 58% of overall market attractiveness—highlighting the importance of scalable energy and physical infrastructure. Globally, around 22.8 gigawatts of new data center capacity is currently under development and expected to come online within the next three years, further increasing the value of markets capable of supporting rapid expansion at scale.

Saudi Arabia’s progress is backed by significant growth in its domestic data center sector. Operational capacity surged from 68 megawatts in 2021 to 440 megawatts in 2025—nearly a sixfold increase in just four years. This rapid expansion underscores the Kingdom’s commitment to building robust digital infrastructure and strengthening its appeal to global investors.

Momentum has continued into 2026. In the first quarter alone, capacity rose to 467 megawatts, marking an increase of over 6% since the start of the year. This steady growth highlights the sector’s role as a key driver of the Kingdom’s digital economy, supporting the rising demand for cloud services and AI-powered applications.

Today, Saudi Arabia is home to more than 60 data centers spread across multiple regions. This geographic distribution enhances operational resilience and allows for flexible, phased expansion. The Kingdom’s strategic location—bridging Asia, Europe, and Africa—further strengthens its position, enabling businesses to access diverse global markets from a single hub.

Commenting on this progress, Eng. Bassam Al-Bassam, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology, emphasized that advancements in digital infrastructure, power availability, development speed, and operational readiness have positioned Saudi Arabia among the world’s leading destinations for high-quality data center investments. He noted that these achievements are reinforcing investor confidence and supporting the Kingdom’s ambition to become a global hub for digital infrastructure and AI.

This progress is complemented by strong performance in broader digital readiness. Saudi Arabia ranked first globally in the Digital Readiness Framework 2025, scoring 94 out of 100 and surpassing countries such as Finland, Germany, the United Kingdom, Norway, and France. This reflects the maturity of its regulatory environment, effective digital governance, and institutional efficiency—critical factors in a sector that depends on clarity, reliability, and speed.

The Kingdom’s digital ecosystem further strengthens its competitiveness. Internet penetration has reached 99%, fiber connectivity now covers 5.8 million homes, and the technology market exceeded SAR 199 billion in 2025. Additionally, local internet traffic through the Saudi Internet Exchange surpassed 2.462 terabits per second, enhancing the performance and reliability of infrastructure supporting data center operations.

Taken together, these developments demonstrate that Saudi Arabia is not only keeping pace with global demand for digital infrastructure but actively shaping its future. As traditional markets face growing constraints around power and land, the Kingdom is positioning itself as a scalable, flexible, and investment-ready alternative—solidifying its role as a rising global hub in the data center and AI economy.