Data Centers in Saudi Arabia

Saudi Arabia – The Middle East's Digital Hub

Saudi Arabia is rapidly emerging as the dominant digital hub for the Middle East, North Africa, and the Levant. For any business targeting growth, security, and low-latency connectivity across the region, establishing an infrastructure footprint here is no longer optional—it's a strategic imperative to reach millions of new users. The Kingdom's massive investment in digital infrastructure ensures reliable and scalable operations.

Saudi Arabia: At A Glance

Network & Connectivity Ecosystem

Saudi Arabia's connectivity landscape is expanding quickly, driven by national digital transformation initiatives. The market features a growing number of domestic and international providers focused on serving the major commercial centers.

Carrier Density & Carrier Neutrality: As of September 2025, the market includes at least 2 major national providers, with international carriers increasing their presence. Carrier-neutral facilities provide essential options for network resilience and cost management.

Direct Cloud On-Ramps: Over 2 cloud on-ramps are available, providing dedicated, private access to 2 cloud regions as of September 2025. Direct connections are available for Oracle Cloud. This enables hybrid cloud architectures that deliver lower latency and higher security than public internet connections.

Internet Exchange Points (IXPs): The primary exchange is the Saudi Arabian Internet Exchange (SAIX). Peering at SAIX reduces latency for domestic traffic and improves end-user experience by keeping data within the country.

Bare Metal: Bare metal server options are available for workloads requiring dedicated physical resources. Providers like Hivelocity offer solutions for companies needing maximum performance and security.

Power Analysis

Average Cost Of Power: Industrial power rates are estimated between SAR 0.18 and SAR 0.25/kWh as of September 2025. These competitive costs make high-density deployments more economically viable compared to other regional markets.

Power Grid Reliability: The national power grid is reliable and well-engineered, particularly in the key data center markets of Riyadh and Jeddah. Major facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located near major economic zones like Riyadh, the capital and financial center, and Jeddah, a critical commercial port city. This proximity supports latency-sensitive applications for finance, logistics, and government sectors.

Regional Market Reach: From Saudi Arabia, organizations can effectively serve a vast and growing market across the Gulf Cooperation Council (GCC), North Africa, and the Levant. Its central location makes it an ideal disaster recovery site for European and Asian deployments.

Tax Advantage For Data Centers: The government offers significant incentives to attract technology investment. A dedicated fund for high-tech projects helps reduce the financial barriers for companies establishing a digital infrastructure presence in the Kingdom.

Natural Disaster Risk

Saudi Arabia has a low overall risk profile for natural disasters, with a national INFORM Risk score of 2.4 out of 10 as of September 2025. This low-risk environment enhances its appeal for mission-critical infrastructure and data backup sites.

The primary natural hazards to consider are:

• Drought (5.0/10)
• River Flood (4.8/10)
• Coastal Flood (4.7/10) - Relevant only to coastal cities like Jeddah.
• Earthquake (1.8/10)

Risks from tsunamis and tropical cyclones are negligible for the country's main data center hubs.