Saudi Arabia’s ambitious plans to digitize its economy and become a major player in artificial intelligence are set to make Riyadh the leading market for data center expansion in the Middle East over the next three years. This assessment comes from Jones Lang LaSalle Inc. (JLL), a global real estate services firm.
According to JLL’s analysis, which was shared with Bloomberg, the Saudi capital is projected to experience a “staggering” compound annual growth rate (CAGR) of 37% in its data center footprint, measured in megawatts, through 2027. This growth rate is nearly double the forecast for its neighbors, Dubai and Abu Dhabi, and significantly surpasses the 15% global average expected during the same period.
The Kingdom’s strategic initiatives, including significant investments in AI and cloud computing infrastructure, are the primary drivers behind this anticipated surge in data center demand. The government’s Vision 2030 plan further underscores these efforts, aiming to diversify the economy and reduce its reliance on oil revenues by fostering technological innovation and attracting foreign investment.
This rapid expansion of data centers is seen as critical for supporting the growing needs of various sectors, including e-commerce, financial services, and government initiatives, all increasingly reliant on advanced computing capabilities and data storage.
This news demonstrates the region’s commitment to embracing cutting-edge technologies and establishing itself as a hub for digital innovation, positioning Riyadh at the forefront of this transformation.
