Contractors’ Guide to Building Saudi Arabia’s Next-Generation Data Centres

Contractors’ Guide to Building Saudi Arabia’s Next-Generation Data Centres

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Contractors’ Guide to Building Saudi Arabia’s Next-Generation Data Centres

The construction of data centres in Saudi Arabia is entering a dynamic phase. Contractors working in this sector must stay abreast of market trends, regulatory changes, technical demands and local conditions. In this article we explore the key factors contractors must know about construction of data centres in Saudi Arabia. You’ll learn about market size, regulatory context, design and build challenges, best practices and why this region presents a compelling opportunity. Whether you are planning your next project or considering entering the market, this guidance will help you align your construction strategy with the realities of Saudi Arabia.

The Market Opportunity for Data Centre Construction in Saudi Arabia

Strong Growth Trajectory

  • The data-centre construction market in Saudi Arabia is estimated at USD 1.61 billion in 2025 and projected to reach USD 8.42 billion by 2030, representing a compound annual growth rate (CAGR) of around 31.7%.

  • Another estimate places the market at USD 1,003.4 million in 2024, with expectations to reach USD 1,908 million by 2030 (CAGR ~11.6%).

  • Meanwhile capacity expansion is dramatic: current installed capacity around ~340 MW with upcoming capacity exceeding 2.7 GW (8× growth).

Why Contractors Should Care

For contractors, these figures mean a surge in construction opportunities—from building shell and core infrastructure, to mechanical, electrical, cooling, and structural works. The rapid expansion also means timing, supply chain, local labour and compliance will matter.

Hotspots & Infrastructure Drivers

  • Key city hubs include Riyadh, Jeddah and Dammam. Riyadh alone concentrates over 273 MW of installed IT load and remains a chief anchor for data-centre construction.

  • Government initiatives such as Vision 2030 push for digital transformation, cloud, AI, 5G and data-sovereignty that fuel demand for data-centre construction.

Key Considerations for Contractors in Saudi Arabia Data-Centre Construction

Regulatory & Sovereignty Requirements

  • Data-sovereignty laws require much of enterprise and government data to be hosted locally; this drives demand for in-country facilities.

  • Local content, Saudisation (local employment quotas), and alignment with national digital infrastructure strategy are increasingly important for contractors.

Technical and Design Challenges

  • Cooling and electrical infrastructure dominate spend: mechanical systems (cooling) accounted for an estimated ~41.9% of construction spend in 2024.

  • The desert climate of Saudi Arabia imposes additional demands on cooling systems, power redundancy, and structural design to maintain uptime and reliability.

  • Tier classification matters: Tier III accounted for ~53.7% share of the market in 2024; Tier IV infrastructure is projected to expand fastest (31.9% CAGR)

Construction Process & Supply-Chain

  • Modular and prefabricated construction methods are increasingly used to accelerate builds in Saudi Arabia.

  • Contractors must manage high power densities: for example, large campuses may require multi-hundred MW substations, integrated solar/renewables, and advanced energy-storage modules.

  • Local sourcing of materials and equipment may improve lead times and compliance with local policy (e.g., a production line for ProLiant servers within the Kingdom).

Location and Site Factors

  • Site selection should consider connectivity (submarine cables, low-latency links), grid stability, proximity to hotspots and regulatory zones. E.g., Jeddah and Dammam host landings of submarine cables.

  • Environmental conditions: contractors must factor in high ambient temperatures, humidity, dust levels and accordingly design building envelope, HVAC systems and generator/cooling plant capacity.

Steps Contractors Should Follow in Construction of Data Centres in Saudi Arabia

1. Feasibility & Site Selection

  • Conduct geotechnical, climatic and grid-connectivity assessments.

  • Check local regulations, zoning, data-sovereignty and permits.

  • Ensure power availability and plan for redundancy.

2. Design & Engineering

  • Define Tier level (e.g., Tier III vs Tier IV) and design accordingly (redundancy, maintainability).

  • Design electrical infrastructure: high-voltage distribution, power-backups, UPS, energy-storage.

  • Design mechanical systems: cooling (air, liquid), airflow management, energy-efficiency.

  • Plan structural and architectural features suited to climatic demands (sun shading, insulation).

3. Procurement & Construction

  • Procurement of equipment: racks, cooling units, generators, switchgear, fiber connectivity.

  • Construction of civil works: raised flooring, structural shell, fire suppression, physical security.

  • Installation of equipment, commissioning, load-testing.

  • Integration with local utilities and connectivity providers; testing for latency, reliability.

4. Commissioning & Operation Readiness

  • Perform full systems testing: electrical redundancy, mechanical redundancy, failover tests.

  • Check for compliance with uptime standards, cooling capacity and power-usage effectiveness (PUE).

  • Establish maintenance protocols, local labour training (Saudisation), documentation.

5. Maintenance & Lifecycle Management

  • Plan for ongoing infrastructure refresh, upgrade paths (especially as AI workloads increase).

  • Consider modular expansion capability to respond to capacity growth in Saudi Arabia’s market.

Conclusion

For contractors, the construction of data centres in Saudi Arabia presents an immense and growing opportunity. With the market set to expand several-fold, aligning your approach to local requirements, technical demands and regulatory environment is vital. Focus on site selection, robust design (especially for cooling and power), local workforce integration and future-proofing can set you apart. By anticipating these factors, contractors can deliver data-centre projects that meet both current standards and future demands. If you’re planning to build in Saudi Arabia, start early with planning, stay well-informed, and align with national digital-infrastructure goals.