Saudi Arabia is set to lead data center growth in the Middle East, according to real estate services firm JLL.

Riyadh is expected to achieve a 37% Compound Annual Growth Rate (CAGR) through 2027, far surpassing Dubai, Abu Dhabi, and the global average of 15%.

This expansion is driven by digital transformation initiatives and ambitions to become an AI hub, supported by government incentives and data sovereignty policies.

Major tech firms like Microsoft, AWS, and Equinix are expanding in the country, while Groq Inc. is partnering with Aramco to build an AI inferencing center.

Saudi Arabia is also developing an AI-focused project with potential funding of up to US$100 billion, competing with the UAE but facing challenges like US export restrictions and rising energy costs.

With a young, tech-savvy population of 35 million, Saudi Arabia is well-positioned for data center growth. Experts highlight its focus on AI and innovation as part of a broader economic diversification strategy.