Saudi Arabia Data Center Rack Market Size and Share
Saudi Arabia Data Center Rack Market Analysis by Mordor Intelligence
The Saudi Arabia data center rack market is valued at USD 32.1 million in 2025 and is forecast to reach USD 61.6 million by 2030, registering a 10.24% CAGR over the period. Near-term momentum reflects a surge of hyperscale projects backed by Vision 2030, a USD 18 billion national data-center program, and aggressive 5G rollouts that push IT equipment closer to end users. Expanding cloud adoption by public agencies is accelerating demand for secure, high-load racks, while AI workloads are raising average rack power densities and driving liquid-cooling readiness. At the same time, operators seek lighter and corrosion-resistant materials to deal with coastal humidity and to simplify edge deployments in remote zones. Continuous localization of content, coupled with a widening skills base, reinforces the overall growth trajectory of the Saudi Arabia data center rack market.
Key Report Takeaways
- By rack size, full racks held 62.45% of the Saudi Arabia data center rack market share in 2024, while quarter racks are projected to grow at 14.24% CAGR to 2030.
- By rack height, 42U racks led with 52.54% revenue share in 2024; the 48U segment is expanding at 13.12% through 2030.
- By rack type, cabinet enclosures commanded 72.24% share of the Saudi Arabia data center rack market size in 2024; wall-mount racks post the fastest 14.87% CAGR to 2030.
- By data-center type, colocation sites held 56.42% of the Saudi Arabia data center rack market size in 2024, whereas hyperscalers record a 15.48% CAGR through 2030.
- By material, steel accounted for 72.12% of the Saudi Arabia data center rack market share in 2024, while aluminum solutions register an 11.23% CAGR to 2030.
Saudi Arabia Data Center Rack Market Trends and Insights
Drivers Impact Analysis
Driver | % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
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Increasing penetration of FTTH and 5G backhaul | 3.5% | National, with concentration in Riyadh, Jeddah, and Dammam | Medium term (2-4 years) |
Hyperscale DC build-outs by STC / AWS / Google | 2.7% | Major urban centers (Riyadh, Jeddah, Dammam) | Short term (≤ 2 years) |
Vision 2030 digital-government push | 1.8% | National | Long term (≥ 4 years) |
Colocation demand surge from OTT and BFSI (data-localization) | 1.3% | Riyadh and Jeddah | Medium term (2-4 years) |
AI-dedicated GPU campuses needing high-density racks | 0.9% | Riyadh and NEOM | Medium term (2-4 years) |
Solar + battery PPAs enabling low-OPEX remote DCs | 0.8% | Secondary cities and remote locations | Long term (≥ 4 years) |
Source: Mordor Intelligence
Increasing penetration of FTTH and 5G backhaul
Rapid fiber and 5G deployment has reached 77% of the population, forcing the creation of edge sites that place compute within one hop of mobile users.[1]U.S. Department of Commerce, “Saudi Arabia – Digital Economy,” trade.gov These micro-facilities need compact quarter and wall-mount racks that fit telecom closets and rooftop shelters. Operators now specify integrated battery backups and dust-proof door seals to cope with power fluctuations and desert particulates. Suppliers are therefore releasing shallow-depth enclosures with rear-cable swing frames and filtered side panels. Over the next three years, rack demand is projected to rise sharply in secondary towns where 5G small-cell clusters outnumber traditional central offices.
Hyperscale DC build-outs by STC, AWS, Google
Center3, Pure Data Centres, and DataVolt anchor more than 300 MW of new hyperscale capacity scheduled before 2027. Build contracts specify 48U racks supporting >3,000 lb static loads, hot-aisle containment, and liquid-cooling manifolds. Modular rail kits and tool-less airflow blanking panels shorten installation windows that hyperscalers cap at 14 weeks. Vendors answer with factory-integrated rack-and-power pods that ship fully wired. Standardization around identical footprints gives suppliers predictable volume, lowering per-unit cost and reinforcing the Saudi Arabia data center rack market.
Vision 2030 digital-government push
The Cloud-First Policy seeks 50% public-sector cloud adoption by 2025, doubling current consumption. [2]World Bank, “The Cloud Imperative: Strategy and Practices from the Kingdom of Saudi Arabia,” worldbank.org Ministries now demand biometric doors, tamper seals, and electromagnetic shielding on every rack. Central procurement guidelines require that new enclosures pass seismic and thermal-shock tests, raising the average bill of materials. Manufacturers have introduced government-grade lines with bonded-steel frames and audit-ready smart locks. Long-term demand looks resilient because refresh cycles align with multiyear e-services rollouts that underpin Vision 2030 milestones.
Colocation demand surge from OTT and BFSI
Data-localization rules obligate OTT video platforms and banks to host traffic within the Kingdom . Colocation operators reply with micro-segmented cages equipped with electronic rack locks, per-door sensors, and dual PDUs. AI-native tenants seek 30 kW cabinets featuring rear-door heat exchangers, incentivizing facility owners to upgrade entire rows. Rising tenancy levels improve utilization, allowing landlords to negotiate multi-year rack frame contracts that stabilize supply and reduce lead-time volatility.
Restraints Impact Analysis
Restraint | % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
High CapEx and energy-intensive OPEX for Tier III/IV builds | -1.5% | National | Medium term (2-4 years) |
Global supply-chain lead times for high-density racks | -1.2% | National, with greater impact in secondary cities | Short term (≤ 2 years) |
Limited redundant grid capacity in key metros | -0.9% | Riyadh, Jeddah, Dammam | Medium term (2-4 years) |
Shortage of certified liquid-cooling integration talent | -0.7% | National | Short term (≤ 2 years) |
Source: Mordor Intelligence
High CapEx and energy-intensive OPEX for Tier III/IV builds
Data Centers Services Regulations introduced in 2024 elevate redundancy and testing thresholds, driving per-rack costs 30% above baseline. Cooling in peak summer conditions pushes PUE penalties that leave operators cautious on new halls. To soften the burden, facility designers adopt perforated doors delivering up to 70% open area and chimney-based containment that channels exhaust directly to ceiling plenums. Suppliers also promote in-row evaporative coolers that lower compressor runtime. Still, sticker shock postpones non-essential expansions and trims the CAGR contribution of smaller enterprises.
Global supply-chain lead times for high-density racks
Liquid-cooling-ready frames rely on valves, gaskets, and manifolds sourced from a narrow supplier base. Port congestion in Asia and extended factory backlogs stretch delivery to 18–22 weeks, slowing GPU cluster projects. Supermicro’s USD 20 billion partnership with DataVolt vividly illustrates demand that currently outpaces capacity.[3]Super Micro Computer Inc., “Supermicro Announces Strategic Partnership with DataVolt,” ir.supermicro.com Regional fabricators respond by tooling local plants for 48U skeletons and front-door heat exchangers, aiming to cut lead time by half. Some operators hedge risk through frame-agnostic layouts enabling phased integration of cooling skids once parts arrive.
Segment Analysis
By Rack Size: Quarter Racks Gain Momentum
Full racks dominate the Saudi Arabia data center rack market with 62.45% share in 2024. They remain the default choice for hyperscalers because standardized footprints simplify hot-aisle containment and bulk cabling. The segment benefits from AI clusters that regularly exceed 30 kW, levels that full-height frames handle without structural compromise. Demand also stems from colocation corridors in Riyadh, where common hall designs are pre-engineered around 600 mm x 1,200 mm footprints. Rollout of GPU cloud zones by STC continues to reinforce volume ordering of full racks, sustaining price competitiveness and high availability in distributor stock.
Quarter racks, however, exhibit the speediest rise at a 14.24% CAGR. Edge computing units in 5G base-station huts, shopping malls, and university campuses favor these compact enclosures. Micro data–center vendors package a pair of quarter racks with fire suppression and battery strings inside shipping-container shells, allowing turnkey deployment within six weeks. Logistics convenience—two technicians can hand-carry an empty quarter rack upstairs—further widens addressable markets. Converter kits that merge two quarter racks into a half rack add flexibility for capacity upgrades, enhancing life-cycle value and minimizing stranded capital.
Note: Segment shares of all individual segments available upon report purchase
By Rack Height: Vertical Optimization Drives Adoption
Traditional 42U frames hold 52.54% of revenue yet face share dilution as operators pursue denser floors. The 42U standard carries a reputation for easy reachability and abundant accessory options, a heritage that keeps it entrenched in colocation meet-me rooms and enterprise server halls. Techniques such as top-of-rack switching and side-cable troughs help maintain airflow clarity even at 15 kW. Meanwhile, server OEMs certify new AI chassis within 42U envelopes, ensuring backward compatibility.
The 48U cohort is projected to expand 13.12% through 2030, supported by hyperscalers that prioritize compute density over walk-in clearance. Taller cabinets often pair with motorized lifts to streamline maintenance. EAE Elektrik delivers KabinPLUS 48U frames rated at 1,500 kg, offering high static strength that accommodates eight-GPU blades per 1U slot. Operators that replace every sixth 42U row with 48U gain roughly 15% extra rack count without extending the white space envelope, an important advantage where land prices continue to climb around Riyadh Tech Valley.
By Rack Type: Wall-Mount Solutions Address Edge Requirements
Cabinet enclosures account for 72.24% of the Saudi Arabia data center rack market size. Their closed design supports ducted exhaust and front-door filtration, essential for minimizing particulate ingress in desert climates. Most models integrate side panels with quick-release locks, allowing rapid extraction for cable upgrades. Security features such as swing-handle keypads and centralized monitoring via Modbus complement compliance requirements under the Personal Data Protection Law.
Wall-mount racks grow quickest at 14.87% CAGR as rail-side deployments for 5G edge nodes multiply. Tripp Lite’s 12U hinged model illustrates this demand by offering 200-lb capacity and reversible doors in only 18 inches depth tripplite.eaton.com. Telecommunications operators value fold-out brackets that enable single-person maintenance on street-level cabinets. Hybrid “swing-mount” concepts further extend usability, letting customers deploy small UPS units behind access switches while preserving frontal airflow pathways.
By Data Center Type: Hyperscalers Drive Innovation
Colocation facilities held 56.42% share of the Saudi Arabia data center rack market size in 2024. They attract enterprises pursuing data-sovereignty compliance without heavy CapEx. These providers outfit cages with modular busbars that snap into rack roofs and support mixed power feeds, making them appealing to BFSI tenants with complex redundancy needs. Continuous power-density upgrades keep colocation halls competitive when courting AI research projects.
Hyperscale operators deliver the fastest 15.48% CAGR. DataVolt has signed multi-gigawatt PPA commitments to secure renewable electricity, enabling GPU campuses that each consume up to 120 MW. Within such facilities, every rack is ordered factory-fitted with front-to-back airflow baffles, dual busbars, and immersion-ready bays. Fixed-spec procurement unlocks manufacturing scale, compressing per-unit costs and elevating the Saudi Arabia data center rack market.

Note: Segment shares of all individual segments available upon report purchase
By Material: Aluminum Gains Traction in Specialized Applications
Steel frames remain entrenched at 72.12% market share because they carry heavy point loads economically. Vendors supply welded or bolted variants; both satisfy 3,000 lb static targets required for dense blade arrays. Yet weight constraints in rooftop micro-sites drive interest in aluminum frames that are 35% lighter yet still meet 1,100 lb benchmarks. Aluminum naturally resists saline corrosion, a benefit for Jeddah’s coastal data centers where sea air accelerates galvanic wear.
Composite and hybrid materials surface in special-purpose enclosures for EMI-sensitive workloads. Legrand’s latest lineup applies powder-coated steel uprights with die-cast aluminum doors to optimize stiffness and thermal exchange legrand.us. Engineers can attach copper mesh grounding straps directly onto internal aluminum members, ensuring a continuous earth path across mixed materials. Adoption remains niche but grows as military and aerospace tenants request high-shielding cabinets to house satellite-uplink control systems.
Geography Analysis
Riyadh commands the largest cluster of commercial and governmental data centers, with six active sites from five providers baxtel.com. Capital city facilities favor high-density racks engineered for AI inference nodes and rely on chilled-water rear-door heat exchangers to manage 40 kW loads. The Saudi Arabia data center rack market size in Riyadh is expected to nearly double by 2030 as DataVolt and Alfanar inject more than USD 1.4 billion into new halls.
Jeddah follows as the second-largest hub, benefitting from submarine-cable landings that attract international content platforms. Zoom’s freshly launched facility in the city underscores rising demand for corrosion-resistant aluminum cabinets that withstand humid coastal air. Operators here install desiccant dehumidifiers directly within row-level containment to keep internal RH below 50%.
Dammam and the Eastern Province are emerging zones where oil-and-gas digital twins generate compute loads requiring ruggedized racks sealed against airborne hydrocarbons. Nokia and stc Group’s 1 Tbps optical link trial in the region paves the way for hybrid cloud analytics that demand low-latency edge sites. Further north, NEOM’s ZeroPoint DC pioneers renewable-powered infrastructure in a desert setting, relying on double-walled cabinets with reflective paint and roof solar shade to reduce inlet-air temperatures. Rack suppliers must therefore tailor corrosion protection, thermal coatings, and seismic anchoring based on each region’s micro-climate and regulatory stipulations.
Competitive Landscape
The Saudi Arabia data center rack market features a blend of international giants—Schneider Electric, Vertiv, Rittal—and agile regional specialists such as Norden Communication. Global brands supply pre-engineered SKUs validated under international standards, securing large block orders from hyperscalers who prefer multi-country harmonization. Local vendors use geographic proximity to offer swift onsite modification, a trait prized by edge-site owners that need custom wall-mount brackets within days.
Strategic alliances broaden solution scope. Schneider Electric pairs its Easy Rack line with chilled-water distribution panels from local HVAC partners to deliver turnkey rows for high-density AI labs. Norden Communication promotes dual-rack systems whose vertical cable troughs align with third-party busbar trunks, simplifying power reticulation across multitenant cages.
Technology differentiation deepens as racks become sensor platforms. Top vendors embed environmental probes, firmware-based access logs, and API hooks for predictive maintenance analytics. Combined with server telemetry, these racks let operators fine-tune airflow and adapt fan curves, yielding energy savings of 6–8% in test deployments. Competitive intensity is expected to rise once local fabrication capacity scales up, narrowing cost gaps between imported and domestic frames and increasing buyer leverage in large procurement cycles.
Saudi Arabia Data Center Rack Industry Leaders
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Schneider Electric SE
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Vertiv Group Corp.
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Rittal GmbH and Co. KG
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Dell Technologies Inc.
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Eaton Corporation plc
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: Super Micro Computer and DataVolt announced a USD 20 billion partnership to deploy ultra-dense GPU racks in green AI campuses
- May 2025: Humain partnered with Nvidia to build 500 MW AI data centers requiring 18,000 Grace Blackwell units, driving demand for high-density liquid-ready racks
- March 2025: Alfanar invested USD 1.4 billion to develop four data centers in Riyadh and Dammam, boosting regional rack orders
- February 2025: Cisco expanded Saudi operations, adding cloud infrastructure that increases demand for networking-optimized racks
Saudi Arabia Data Center Rack Market Report Scope
A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.
The Saudi Arabia data center rack market is segmented by rack type (open frame, closed frame), rack size (quarter rack, half rack, full rack), and end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.
By Rack Size | Quarter Rack |
Half Rack | |
Full Rack | |
By Rack Height | 42U |
45U | |
48U | |
Other Heights (?52U and Custom) | |
By Rack Type | Cabinet (Closed) Racks |
Open-Frame Racks | |
Wall-Mount Racks | |
By Data Center Type | Colocation Facilities |
Hyperscale and Cloud Service Provider DCs | |
Enterprise and Edge | |
By Material | Steel |
Aluminum | |
Other Alloys and Composites |
Quarter Rack |
Half Rack |
Full Rack |
42U |
45U |
48U |
Other Heights (?52U and Custom) |
Cabinet (Closed) Racks |
Open-Frame Racks |
Wall-Mount Racks |
Colocation Facilities |
Hyperscale and Cloud Service Provider DCs |
Enterprise and Edge |
Steel |
Aluminum |
Other Alloys and Composites |
Key Questions Answered in the Report
What is driving double-digit growth in the Saudi Arabia data center rack market?
Vision 2030 investments, hyperscale cloud build-outs, nationwide 5G coverage, and stringent data-localization laws collectively lift rack demand across hyperscale, colocation, and edge segments.
Which rack sizes are gaining popularity for edge deployments?
Quarter racks and wall-mount enclosures are preferred for edge sites because their compact footprint fits telecom closets and remote shelters while still supporting integrated power backup.
Why are aluminum racks becoming more common in Saudi data centers?
Aluminum frames weigh less, resist coastal corrosion, and dissipate heat effectively, attributes valued in humid coastal cities such as Jeddah and in rooftop edge locations.
How are hyperscalers influencing rack specifications?
Operators such as DataVolt and center3 standardize on 48U racks with >3,000 lb load capacity, liquid-cooling compatibility, and integrated cable ducts, pushing vendors to scale identical SKUs.
Page last updated on: June 23, 2025