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Vision 2030’s $100 billion investment in digital infrastructure, including NEOM’s $500 billion smart city, drives the $2.1 billion data center market. The Cloud First policy boosts cloud adoption, with 70% of enterprises using cloud solutions. STC’s 5G network, covering 77% of the country, supports 45 million IoT devices for smart cities. Google’s cloud region launch with Aramco and DataVolt’s $5 billion AI data center in NEOM highlight hyperscaler investments. The Saudi Data and AI Authority (SDAIA) promotes AI, contributing $135 billion to the economy, fueling demand for data storage and processing.

E-commerce, with 33.6 million online shoppers, and 98.6% internet penetration drive data center demand, with the market generating $418.5 million in colocation revenue. The $300 billion Public Investment Fund (PIF) supports tech projects, attracting firms like Equinix, investing $1 billion in a 100MW facility. Submarine cables like 2Africa enhance connectivity, while 36.96 broadband subscriptions per 100 people boost data traffic. The National Transformation Program’s focus on smart cities like Qiddiya, alongside data sovereignty laws, encourages local data centers, positioning Saudi Arabia as a regional digital hub.

Key Market Trends & Insights:

AI and Edge Computing Growth

AI-driven data centers, supporting 45 million IoT devices, fuel NEOM’s $500 billion smart city. DataVolt’s $5 billion AI facility processes 10 petabytes daily, with 25% of data centers adopting edge computing for low-latency applications.

Sustainable Data Center Designs

The Saudi Green Initiative drives eco-friendly data centers, with 30% using renewable energy. Equinix’s 100MW facility in Riyadh employs solar power, cutting emissions by 20%, aligning with Vision 2030’s sustainability goals for smart cities.

Hyperscaler Investments Surge

Hyperscalers like Google, with a new cloud region via Aramco, boost the $418.5 million colocation market. PIF’s $300 billion investment supports 70% of enterprises adopting cloud solutions, enhancing data center capacity in Jeddah.

5G-Driven Connectivity Boost

STC’s 5G network, covering 77% of Saudi Arabia, supports 36.96 broadband subscriptions per 100 people. Nokia’s NextGen Lab in Riyadh enhances data center connectivity for Qiddiya, driving 30% of ICT demand.

E-Commerce Data Demand

E-commerce, with 33.6 million shoppers, drives data center growth, generating $1.88 billion in online sales. Amazon’s data center expansion in Riyadh supports real-time analytics, with 40% of digital traffic from e-commerce platforms.

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