RIYADH: Saudi Arabia’s deserts are fast becoming the new frontier for hyperscale data centers, offering vast land, natural resilience, and strategic positioning that traditional global tech hubs struggle to match.

The Kingdom’s geologically stable terrain faces little risk from earthquakes or flooding, making it an ideal base for mission-critical digital infrastructure. Market revenue is projected to reach $2.07 billion in 2025 and expand to $2.83 billion by 2030, growing annually at 6.45 percent, according to Statista.

Turki Badhris, president of Microsoft Arabia, said the desert landscape provides a rare opportunity to build at scale without the limitations of legacy infrastructure.

“Unlike traditional global tech hubs, the Kingdom’s open terrain allows for purpose-built facilities with fully independent power, cooling, and networking systems. This kind of scale and flexibility is challenging to achieve in crowded global tech hubs,” Badhris said.

Fady Chalhoub, partner at PwC Middle East, noted that hubs such as Singapore and Zurich face constraints from land scarcity, high real estate costs, and strict regulations. By contrast, Saudi Arabia combines affordable land with state-backed investment in subsea and terrestrial fiber routes linking Europe, Asia, and Africa.

“This combination of low-risk geography, strategic location, and government-backed infrastructure development presents a compelling value proposition for hyperscale providers seeking to expand beyond traditional hubs,” he said. 

Houssem Jemili, consultant at Bain & Co., added that abundant land, ultra-low-cost solar power, and a dry climate suitable for passive cooling strengthen the Kingdom’s appeal. Government support, he said, “provides financial incentives, infrastructure, and regulatory ease,” while proximity to subsea cables enhances global connectivity.

Energy and innovation advantage

The Kingdom is also leveraging renewables to power its data economy. Chalhoub emphasized the role of solar and green hydrogen in cutting emissions and lowering operating costs. He said despite extreme heat, the region’s low humidity makes advanced cooling techniques viable.

“Solutions such as liquid and immersion cooling, including direct-to-chip technologies, are increasingly viable in this environment, supported by the availability of land, progressive regulation, and an innovation-friendly policy landscape,” he said.

He added: “Saudi Arabia is prioritizing the development of dedicated digital zones and infrastructure corridors,” enabling campuses tailored for AI, cloud, and quantum technologies.

Jemili pointed to the Kingdom’s intense solar irradiance as a source of ultra-cheap renewable power. The dry climate, he said, is driving the adoption of water-saving cooling systems, while land availability supports hyperscale campuses at lower real estate costs.

He noted that megaprojects such as Neom’s Public Investment Fund–backed AI data center campus show how Saudi Arabia is integrating digital infrastructure into broader smart city plans. With new subsea cables strengthening its global links, the Kingdom is emerging as a “tri-continental data hub,” Jemili said.

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