Data Centers in Saudi Arabia

Saudi Arabia – The Middle East’s Premier Digital Gateway

Executive Summary

Saudi Arabia is the primary digital anchor for the Middle East, offering the scale and low latency necessary for high-stakes government and enterprise transformation. For organizations targeting the Gulf, this market provides a strategic bridge between Europe and Asia backed by massive sovereign investment. Locating here is a move for those prioritizing rapid regional growth and world-class infrastructure.

Saudi Arabia: At A Glance

Network & Connectivity Ecosystem

The kingdom is a heavy hitter in subsea cable landings, effectively serving as the digital crossroads for the region. As of December 2025, the infrastructure reflects a national push toward total digital self-sufficiency.

Carrier Density & Carrier Neutrality: Carrier count: over 5, as of December 2025. While the market is led by major providers like STC and Mobily, the ecosystem is expanding to include more diverse network operators for better redundancy.

Direct Cloud On-Ramps: Over 2, enabling access to 2 cloud regions as of December 2025. Current deployments facilitate direct connections to Oracle Cloud.

Internet Exchange Points (IXPs): Primary exchanges like SAIX in Riyadh facilitate local peering, which keeps traffic in-country rather than backhauling it through Europe as of December 2025.

Bare Metal: Dedicated hardware options are available through international providers and local facilitators such as Latitude.sh as of December 2025.

Power Analysis

The energy sector remains centered on traditional sources, resulting in some of the most competitive industrial pricing on the planet. This makes it a prime location for power-hungry AI and high-density compute workloads.

Average Cost Of Power: Industrial electricity is estimated at $0.05–0.08/kWh, as of December 2025. The generation mix consists of approximately 99% fossil fuels and 1% renewables, ensuring very low costs for large-scale operations.

Power Grid Reliability: Major data center corridors in Riyadh and Jeddah benefit from a well-engineered grid with multi-substation support. Reliability is high, supported by heavy state investment in utility infrastructure as of December 2025.

Market Access, Business & Tax Climate

This is no longer just an oil economy; it is a burgeoning tech market with a large young, digital-native population. The business climate is increasingly geared toward attracting international tech players.

Proximity To Key Business Districts: Facilities are strategically located near Riyadh, the financial capital, and Jeddah, a major trade and logistics center. This proximity is vital for low-latency financial services and government tech initiatives as of December 2025.

Regional Market Reach: A presence in Saudi Arabia provides direct, low-latency access to over 35 million local consumers. It serves as a springboard for the wider GCC and Middle East markets as of December 2025.

Tax Advantage For Data Centers: Investors benefit from significant support through specialized vehicles. A high-tech investment fund helps offset initial capital requirements for large-scale digital projects as of December 2025.

Natural Disaster Risk

The overall risk profile for Saudi Arabia is Low (2.4/10), as of December 2025. While the country is geologically stable, specific environmental factors require consideration for facility engineering.

• Epidemic: 5.7 (Moderate) – as of December 2025
• Drought: 5.0 (Moderate) – as of December 2025
• River Flood: 4.8 (Moderate) – as of December 2025
• Coastal Flood: 4.7 (Moderate, primarily a regional risk for Jeddah) – as of December 2025
• Earthquake: 1.8 (Low) – as of December 2025

Other hazards, such as tsunamis and tropical cyclones, are minor or not listed for this geography as of December 2025. Site selection focuses on managing heat and localized flooding in specific urban areas.