Saudi Arabia Artificial Intelligence (AI) Optimised Data Center Market

Saudi Arabia Artificial Intelligence (AI) Optimised Data Center Market Analysis

The Saudi Arabia Artificial Intelligence Optimised Data Center Market size is estimated at USD 633.14 million in 2025, and is expected to reach USD 174.10 million by 2030, at a CAGR of 22.42% during the forecast period (2025-2030).

Saudi Arabia is advancing its artificial intelligence (AI) capabilities as part of its Vision 2030 initiative, which aims to diversify the economy and reduce reliance on oil revenues. The Kingdom is focusing on building AI data centers to support sovereign AI models and advanced computing. In May 2025, Saudi Arabia announced the deployment of 18,000 NVIDIA GB300 Grace Blackwell AI supercomputers in the initial phase of its AI data center project, with plans to expand to a 500-megawatt capacity over the next five years.

Vision 2030 emphasizes the development of a knowledge-based society and robust digital infrastructure. To achieve these objectives, the government has introduced initiatives such as HUMAIN, a subsidiary of the Public Investment Fund (PIF), launched in May 2025 to oversee AI development. The Saudi Data & AI Authority (SDAIA) has also played a pivotal role in fostering AI advancements through strategic collaborations with global technology firms, aligning with the Kingdom’s broader goals of technological innovation.

NVIDIA plays a central role in Saudi Arabia’s AI infrastructure development. Its GB300 Grace Blackwell chips, unveiled in 2025, are being utilized to power the Kingdom’s AI data centers. These chips will support a 500-megawatt facility, marking a significant step in Saudi Arabia’s AI journey. Jensen Huang, NVIDIA’s founder, highlighted the transformative potential of AI and reiterated the company’s commitment to supporting the Kingdom’s ambitious plans.

Saudi Arabia’s focus on AI is expected to create substantial non-oil revenue streams and strengthen its role in the global AI supply chain. HUMAIN has announced plans to establish AI factories equipped with hundreds of thousands of GPUs, aiming to build a comprehensive AI ecosystem. Looking ahead, the Kingdom is expected to integrate AI into critical sectors such as healthcare, education, and transportation, while also advancing smart city initiatives. These efforts will likely drive innovation, improve operational efficiencies, and enhance the quality of life for its citizens. With sustained investments and strategic partnerships, Saudi Arabia is positioned to set global benchmarks in AI-driven solutions and establish itself as a leader in the evolving AI landscape.

Saudi Arabia Artificial Intelligence (AI) Optimised Data Center Market Trends

Major Global Tech Firms Investing in Saudi AI Infrastructure

Saudi Arabia is making significant investments in artificial intelligence (AI) infrastructure and fostering partnerships with major global technology firms. At the LEAP 2025 conference, the country announced over USD 14.9 billion in technology investments. These strategic collaborations underscore Saudi Arabia's ambition to position itself as a global leader in AI and digital transformation.

Equinix has committed USD 1 billion to establish a 100-megawatt data center in Saudi Arabia, marking a significant milestone in the country's digital infrastructure development. This state-of-the-art facility will provide the computational power and storage capacity required to process vast datasets and execute complex AI algorithms. By serving hyperscale and retail customers, the data center will enable businesses to seamlessly adopt AI-driven solutions, enhancing operational efficiency and competitiveness. Additionally, the data center will play a pivotal role in advancing cloud computing and digital transformation initiatives, attracting global technology companies to the region.

For instance, in January 2025, Alat and Lenovo have pledged USD 2 billion to build an advanced AI and robotics manufacturing center while also establishing Lenovo’s regional headquarters in Riyadh. This initiative is expected to drive innovation in AI and robotics, creating opportunities for local talent and fostering technological advancements in the region. The manufacturing center will contribute to Saudi Arabia's efforts to diversify its economy and reduce reliance on oil revenues.

Overall, these investments and partnerships highlight Saudi Arabia's commitment to becoming a global hub for AI and digital transformation. By enhancing its digital infrastructure, fostering innovation, and attracting global technology leaders, the country is positioning itself as a key player in the rapidly evolving AI market. These initiatives not only contribute to economic diversification but also pave the way for technological advancements that will benefit both the region and the global AI ecosystem.

Development of Sustainable, Large-Scale AI Data Centers

Saudi Arabia is actively pursuing the development of sustainable, large-scale AI data centers by leveraging its abundant renewable energy resources and focusing on infrastructure that supports energy-efficient technologies. The country is integrating advanced cooling systems and renewable energy solutions to address the environmental challenges posed by traditional data centers

The development of sustainable, large-scale AI data centers is becoming increasingly critical as the demand for artificial intelligence technologies continues to grow. These facilities aim to balance the need for advanced computing power with environmental sustainability, leveraging renewable energy and innovative technologies to reduce their carbon footprint.

For Instance, February 2025 – NEOM and DataVolt have signed a landmark agreement to develop sustainable, large-scale AI data centers, advancing the Kingdom’s vision for a data-driven economy. The project, with an initial investment of USD 5 billion, will take a phased approach, with phase one expected to be operational by 2028. The facility will integrate energy-efficient architectures and computing densities to address the global challenges posed by traditional data centers

Data centers currently consume 1 to 1.3 percent of global electricity demand, according to the International Energy Agency (IEA). With the rise of generative AI, power consumption is projected to grow significantly over the next decade. This highlights the urgent need for transitioning to clean, sustainable solutions to mitigate the environmental impact of data centers.

The agreement underscores the Kingdom’s commitment to renewable energy and sustainable infrastructure. Oxagon will lease land to DataVolt for the facility and provide infrastructure support. The data center will be entirely powered by renewable energy, utilizing advanced cooling technologies and designed to operate at net zero, addressing power availability and carbon footprint challenges.

Oxagon’s strategic location on the Red Sea coast, with access to sub-sea cables, cost-competitive renewable energy, green hydrogen, and a growing industrial ecosystem, positions it as an ideal site for DataVolt’s large-scale green AI factory. This initiative aligns with the Kingdom’s ambition to become a regional digital and AI hub, leveraging its abundant green energy resources to support sustainable development.

Saudi Arabia Artificial Intelligence (AI) Optimised Data Center Industry Overview

In May 2025, Cisco Systems committed significant investments in AI infrastructure globally, including a recent USD 500 million initiative aimed at expanding its AI capabilities in the Middle East. This investment underscores the company's strategic focus on fostering innovation and strengthening its presence in emerging markets.

In March 2025, Alfanar Global Development announced plans to invest USD 1.4 billion in the development of four strategically located data centers across Riyadh and Dammam, Saudi Arabia. The initiative aims to bolster cloud computing and AI-driven solutions for both public and private sectors, aligning with the Kingdom's Vision 2030 goals. The company emphasized its commitment to sustainability and efficiency in these projects, which are expected to enhance Saudi Arabia's digital infrastructure and attract global businesses.

Saudi Arabia Artificial Intelligence (AI) Optimised Data Center Market Leaders

Saudi Arabia Artificial Intelligence (AI) Optimised Data Center Market News

• May 2025: Nvidia Corp. and Advanced Micro Devices Inc. (AMD) will supply semiconductors to Saudi Arabian artificial intelligence company Humain for a $10 billion data center project. The initiative involves building AI infrastructure, including "AI factories" with a projected capacity of up to 500 megawatts, and aims to support the Kingdom’s growing demand for advanced AI technologies while adhering to local data storage mandates.
• May 2025: President Trump and Silicon Valley representatives have finalized a significant agreement with the United Arab Emirates to supply hundreds of thousands of advanced Nvidia chips annually. These chips will facilitate the establishment of one of the world’s largest data center hubs. Shipments are set to begin this year, with the majority allocated to U.S. cloud service providers and approximately 100,000 reserved for G42, an Emirati AI firm.