Saudi Arabia Data Center Processor Market Size
| Study Period | 2021 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 1.32 Million |
| Market Size (2031) | USD 7.29 Million |
| CAGR (2025 - 2031) | 33.01% |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Data Center Processor Market Analysis
The Saudi Arabia Data Center Processor Market size is estimated at USD 1.32 million in 2025, and is expected to reach USD 7.29 million by 2031, at a CAGR of 33.01% during the forecast period (2025-2031).
- Artificial Intelligence (AI) is reshaping economic development, societal norms, and innovation across various sectors in Saudi Arabia and worldwide. Recognizing AI's transformative potential, Saudi Arabia is embedding this technology at the heart of its Vision 2030 strategy. By prioritizing AI in its economic and digital overhaul, the nation aims not just to harness AI for sustainable growth but also to emerge as a global leader in the field. With heightened attention from the government, educational institutions, and businesses alike, it's crucial to delve into the advantages and ramifications of AI in the Kingdom.
- Saudi Arabia has created a national plan and strong organizations, like SDAIA, to drive its AI goals. These efforts show the country's commitment to building a supportive environment for AI. Saudi Arabia announces a USD 100 billion plan to become a leader in artificial intelligence, data analytics, and advanced technology.
- Saudi Arabia plans to be one of the top 15 countries in artificial intelligence (AI) by the end of this decade. The country is working on using AI within its borders and aims to become a major exporter of AI solutions by 2030.
- Saudi Arabia has spent over USD 24.8 billion on digital infrastructure in the last six years, improving internet services significantly. The country now has a 99% internet penetration rate, and mobile internet speeds have reached 215 Mbps, almost double the global average. These improvements have placed Saudi Arabia among the top 10 countries in the world for mobile internet speed.
- Saudi Arabia, the Middle East's leading hub for technical innovation, is set to further bolster its digital economy, especially with its recent partnership with Nvidia.
- The leading players in the data center industry are making significant investments to support Saudi Arabia's growing digital economy, aligned with Vision 2030. For instance,In March 2024, Saudi Arabia is witnessing a surge in digital investments, highlighted by AWS's commitment of over USD 5.3 billion and its plans to establish a cloud region in the kingdom.
- Microsoft has invested USD 2.1 billion in building a large-scale cloud system in the Kingdom.
- Saudi Arabia is quickly becoming a technology leader in the Middle East. The Kingdom is focusing on digital transformation and investing in AI, cloud computing, and smart city projects, which is driving strong growth. The increasing use of AI is creating more demand for high-performance computing to handle AI workloads, boosting the processor data center market. Government programs like Vision 2030 and growing investments in smart cities and digital transformation are expected to increase the need for advanced data center infrastructure. Hyperscale cloud service providers and enterprises expanding in the region are likely to partner with local companies, creating opportunities for processor solutions designed for local needs. As energy efficiency becomes more important, the demand for processors is also expected to grow.
Saudi Arabia Data Center Processor Market Trends
AI Investments and Government Initiatives are Shaping the Future of the Processor Data Center Market
- Saudi Arabia is positioning itself as a global AI leader under Vision 2030. The Saudi Data & AI Authority (SDAIA), formed in 2019, leads this effort by driving AI adoption in government, increasing public awareness, and ensuring effective use of data and AI technologies across the Kingdom.In the 2024 Global AI Index, Saudi Arabia secures the top spot for its government strategy.
- In August 2023, Saudi Arabia is investing in Nvidia GPUs to advance generative AI. The Saudi government, via King Abdullah University of Science and Technology (Kaust), has acquired over 3,000 Nvidia H100 chips, each priced at around USD 40,000.
- In November 2024, the Saudi Arabian government launched Project Transcendence, a USD 100 billion initiative to position the country as a leader in artificial intelligence, data analytics, and advanced technology. The project aims to build a competitive AI ecosystem, focusing on workforce training, AI literacy, and regulatory frameworks to attract and retain top talent.
- The processor data center market is undergoing significant transformation, driven by increasing investments in artificial intelligence (AI) and proactive government initiatives. These factors are playing a pivotal role in shaping the market's future trajectory, fostering innovation and growth opportunities.
High performance Computing will Drive the Demand for Cloud Service Providers in Saudi Arabia
- As AI becomes a bigger part of businesses and societies, it is also changing data centers. Data centers now need to adapt to handle AI workloads, which require powerful computing, large storage, and fast networking.
- High-Performance Computing Saudi Arabia is set to play a critical role in the country's future drive toward innovation and excellence. By maintaining investments in advanced computing systems and strengthening collaboration between industry and government, Saudi Arabia is well-positioned to unlock new opportunities for discovery and progress in the coming years.
- In October 2024,Google Cloud and Saudi Arabia's Public Investment Fund (PIF) have partnered to build a global artificial intelligence (AI) hub in the country. The facility, near Dammam, will allow customers to use Google Cloud's advanced AI technology. It will include tools like Google's tensor processing units (TPUs), GPUs, and the Vertex AI platform.
Saudi Arabia Data Center Processor Industry Overview
Key players like Advanced Micro Devices Inc, NVIDIA Corporation, Broadcom Inc, IBM, and Intel Corporation dominate the Saudi Arabia data center processor market, underscoring its competitive nature. As data centers increasingly turn to GPUs, it's largely due to the demands of AI, machine learning, and high-performance computing. These GPUs not only boost energy efficiency and scalability but also enhance processing power, facilitating smooth cloud operations, hybrid computing, and data-heavy applications. In Saudi Arabia, the growing adoption of AI and high-performance computing (HPC) is expected to drive the demand for GPUs in the data center processor market.
In September 2024,SDAIA has partnered with NVIDIA to make Saudi Arabia a leader in AI innovation. This partnership uses NVIDIA's latest technologies to help developers easily create and use AI applications with the ALLaM Arabic LLM model. It ensures high performance and scalability for tasks specific to the region.
In January 2024, Saudi Arabia is building partnerships with Google and Intel to work on Artificial Intelligence (AI) and Cloud Computing.
Saudi Arabia Data Center Processor Market Leaders
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Advanced Micro Devices Inc.
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NVIDIA Corporation
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Broadcom Inc.
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IBM
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Intel Corporation
- *Disclaimer: Major Players sorted in no particular order
Saudi Arabia Data Center Processor Market News
- September 2024: Saudi Aramco's digital arm has partnered with US semiconductor startup Groq to build the world's largest AI inferencing data center. The facility will leverage Groq's chips for ultra-fast AI processing, essential for technologies like self-driving cars and national security that require real-time data processing.
- May 2024: Ezditek, a leading provider of data center and digital infrastructure services in the Kingdom of Saudi Arabia (KSA), has signed a Memorandum of Understanding (MoU) with Gcore, a global company offering edge AI, cloud, network, and security solutions. This partnership aims to help AI businesses set up high-capacity infrastructure in the KSA. Over the next five years, the plan is to provide AI/GPU computing capabilities across nine data centers, with three in Riyadh, three in Jeddah, and three in Dammam.
Saudi Arabia Data Center Processor Industry Segmentation
Data centers house and manage critical applications and data, using computing and storage networks for efficient delivery. Processors—GPUs, CPUs, and TPUs—are central to their operation. GPUs handle multitasking, excelling in graphics rendering and AI tasks. CPUs, with multi-core architecture, support parallel processing. TPUs, designed for machine learning, stand out from GPUs, which have transitioned from graphics to AI applications.
Saudi Arabia Data Center Processor Market is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-x86 (ARM, Power and other processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).
| Market Segmentation - By Processor Type | GPU |
| CPU | |
| FPGA | |
| AI Accelerator | |
| Market Segmentation - By Application | Advanced Data Analytics |
| AI/ML Training and Inferences | |
| High Performance Computing | |
| Security and Encryption | |
| Network Functions | |
| Others | |
| Market Segmentation - By Architecture | x86 |
| Non-x86 (ARM, Power and other processors) | |
| Market Segmentation - By Data Center Type | Enterprise |
| Colocation | |
| Cloud Service Providers |
Saudi Arabia Data Center Processor Market Research FAQs
How big is the Saudi Arabia Data Center Processor Market?
The Saudi Arabia Data Center Processor Market size is expected to reach USD 1.32 million in 2025 and grow at a CAGR of 33.01% to reach USD 7.29 million by 2031.
What is the current Saudi Arabia Data Center Processor Market size?
In 2025, the Saudi Arabia Data Center Processor Market size is expected to reach USD 1.32 million.
Who are the key players in Saudi Arabia Data Center Processor Market?
Advanced Micro Devices Inc., NVIDIA Corporation, Broadcom Inc., IBM and Intel Corporation are the major companies operating in the Saudi Arabia Data Center Processor Market.
What years does this Saudi Arabia Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the Saudi Arabia Data Center Processor Market size was estimated at USD 0.88 million. The report covers the Saudi Arabia Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
Saudi Arabia Data Center Processor Industry Report
Statistics for the 2025 Saudi Arabia Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Data Center Processor analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
