Riyadh – Sharikat Mubasher: Saudi Arabia’s push to digitize its economy and become an AI hub is set to make Riyadh the fastest-growing data center market in the Middle East over the next three years.

The real estate services firm Jones Lang LaSalle Inc. (JLL) told Bloomberg that, Riyadh’s data center capacity will grow at a 37% annual rate through 2027, nearly double the expected growth for Dubai and Abu Dhabi.

The kingdom has been rapidly expanding cloud infrastructure and data centers as part of its economic diversification strategy, driven by rising data demands and an influx of companies establishing headquarters in Riyadh.

Major players like Microsoft, Amazon Web Services, and Equinix have committed to building data centers in Saudi Arabia, while Groq Inc. is partnering with Aramco on an AI inferencing center.

JLL credits favorable government policies, tax incentives, and economic free zones for fueling investment. Saudi Arabia is also planning a $100 billion AI initiative to expand its data center network and compete with the UAE’s AI ambitions.

Despite US restrictions on AI chip exports, experts say Saudi Arabia’s population size, strong investment capabilities, and commitment to technology position it to become the region’s data center leader.