Saudi Arabia is rapidly positioning itself as a major digital hub, with Riyadh set to lead data center growth in the Middle East over the next few years. According to Jones Lang LaSalle Inc. (JLL), Riyadh’s data center capacity is expected to grow by an impressive 37% annually through 2027—nearly twice the growth rate projected for Dubai and Abu Dhabi and significantly above the global average of 15%.
The growth of Riyadh’s data centers is being fueled by the Saudi government’s commitment to digital transformation and its plan to modernize the economy. With a growing tech ecosystem, Saudi Arabia has attracted major international companies such as Microsoft, Amazon Web Services (AWS), and Equinix, all investing in the region’s infrastructure. The country is also increasingly becoming an AI hub, with global tech giants expanding their cloud infrastructure and AI projects in the kingdom.
Daniel Thorpe, head of EMEA data center research at JLL, attributes this growth to government policies, AI-driven initiatives, and a booming tech ecosystem. Saudi Arabia’s investment in digital infrastructure is central to its ambition of becoming an AI powerhouse.
In addition to big tech giants, startups are also taking notice. For instance, Groq Inc., a US-based startup, has partnered with Saudi Aramco to build an AI inferencing center. The Saudi government’s focus on data sovereignty, ensuring sensitive data remains within its borders, has been a crucial factor in attracting investment. Free zones and tax incentives have further boosted the country’s digital landscape.
Saudi Arabia is also planning a massive $100 billion AI initiative, aimed at accelerating data center growth and advancing AI technology. While the region faces challenges, such as US government restrictions on advanced AI chip exports, experts believe Saudi Arabia has the resources and commitment to overcome these obstacles and lead the AI revolution.
With a population of 35 million and a strong focus on AI, Saudi Arabia is positioned to rival the UAE’s data center capacity and lead the region in AI development, as highlighted by experts from Proptech Connection, a real estate and tech consultancy.
