Skip to content Skip to Search
Skip navigation

Saudi data centre sector attracts global investment

  • Projects worth billions announced this week
  • Indian tech group makes debut
  • Riyadh company to spend $5bn

Saudi Arabia has emerged as one of the most attractive destinations for global players looking to build and operate data centre facilities in the region.

This was one of the prominent trends evident at Leap, the technology event taking place this week in Riyadh, where numerous tech companies revealed plans to enter the market to ensure local data is stored within the geographical boundaries of the kingdom.

Among those making announcements was the Indian technology company Zoho, which inaugurated two data centres, marking its debut in the kingdom.



Amazon Web Services, a crucial player in cloud computing, revealed its intention to invest more than $5.3 billion in establishing data centres in Saudi Arabia by 2026. 

Datavolt, based in Riyadh, disclosed an investment of $5 billion for the construction of data centres with a combined capacity exceeding 300 megawatts. 

The US software company ServiceNow is planning to invest $500 million in the kingdom with a new regional headquarters in Riyadh and two in-country data centres.

“These investments are key to enable future growth in the industry and to enable the broader transformation of the kingdom’s economy,” said Khalid Al-Falih, Saudi Arabia’s minister of investment.

Sridhar Vembu, the co-founder of Zoho Corp, said Zoho “respect[s] user privacy and the company owns and operates its data centres, ensuring complete oversight of customer data, privacy and security”.

Prasad Kalyanaraman, vice-president of infrastructure services at Amazon Web Services, said: “We look forward to helping Saudi Arabian institutions, startups and enterprises deliver cloud-powered applications to accelerate growth, productivity and innovation and spur job creation.”

A report last year by the property consultancy Knight Frank found Saudi Arabia was the fastest growing data centre market in Mena.

The kingdom’s live IT capacity has risen by 30 percent to 109 megawatts since the start of 2023, the report said.

Knight Frank attributes this growth to Saudi Arabia’s strategic location, political stability, and the increasing domestic and international demand for digital services. 

The four-day Leap event runs until March 7 at Riyadh Exhibition and Convention Centre. Organisers announced on Wednesday that new investments worth $13.5 billion had been announced at the event so far.

Latest articles

A cattle drive in the Pantanal region. Meat is a major component of Brazil's trade with Saudi Arabia

Brazil’s JBS to open Saudi food factory as trade ties deepen

Brazilian multinational JBS is to open a food factory in Saudi Arabia with an investment of SAR500 million ($133 million), in a further sign of the strengthening ties between the two countries. JBS, one of the largest meat and poultry producers in the world, will open the facility in Jeddah under its subsidiary Seara by […]

Architecture, Building, Convention Center

First Abu Dhabi revenue rises 16% on overseas growth

First Abu Dhabi (FAB), the UAE’s biggest lender, said revenues rose 16 percent year on year to AED15.7 billion ($4.3 billion) in the first half of 2024, driven by 30 percent annual growth in international franchise. Net profit increased 3 percent to AED8.4 billion in the first six month ended June 30, 2024, compared to […]

People, Person, Adult

Diriyah awards $2bn contract for Wadi Safar masterplan

The Public Investment Fund-backed Diriyah Company has awarded its largest single contract to date to a Saudi-Qatari joint venture for the Wadi Safar masterplan. The SAR8 billion ($2.13 billion) contract was awarded to the joint venture between Urbacon Saudi Company, the local unit of Qatar’s Urbacon International, and Saudi-headquartered Al Bawani Company, the state-backed Saudi […]

Adult, Male, Man

Kuwait turns to budget deficit as oil income drops 19%

Kuwait reported a budget deficit of KD1.6 billion ($5.2 billion) in 2023/24 from a surplus of KD6.4 billion in the previous year, the finance ministry said. Oil revenues fell to KD21.6 billion in 2023/24, down 19 percent, compared to KD26.7 billion a year ago, the state-run Kuna news agency reported, citing a ministry statement. The […]