Saudi Arabia ranks second globally in data center market attractiveness, ministry says

RIYADH, May 3 (Saudi Arabia Breaking News) - Saudi Arabia ranked second globally after the United States among the most attractive markets for data centres, reflecting the kingdom’s growing position in digital infrastructure, the communications ministry said, citing a Bloomberg analysis.

The analysis showed that power availability and land enablement account for 58% of market attractiveness for data centre projects, while 22.8 gigawatts of new global capacity is expected to come online within the next three years, the ministry said.

Saudi Arabia’s operational data centre capacity rose to 440 megawatts in 2025 from 68 megawatts in 2021, and increased further to 467 megawatts in the first quarter of 2026, it said.

The kingdom now hosts more than 60 data centres across multiple regions, supported by growing demand for digital services, cloud computing and artificial intelligence applications, according to the ministry.

Bassam Al-Bassam, head of the Artificial Intelligence Enablement Office at the Ministry of Communications and Information Technology, said the ranking reflected progress in digital infrastructure, power availability, development speed and operational readiness, and would strengthen investor confidence in the Saudi market.