Saudi Arabia Cloud Services Market Set to Surge USD 13.1 Billion by 2033 | CAGR of 13.10%

Saudi Arabia Cloud Services Market Overview

Market Size in 2024: USD 4.0 Billion

Market Size in 2033: USD 13.1 Billion

Market Growth Rate 2025-2033: 13.10%

According to IMARC Group's latest research publication, "Saudi Arabia Cloud Services Market Report by Deployment (Public Cloud, Private Cloud), End Use Industry (Oil, Gas, and Utilities, Government and Defense, Healthcare, Financial Services, Manufacturing and Construction, and Others), and Region 2025-2033", The Saudi Arabia cloud services market size reached USD 4.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 13.1 Billion by 2033, exhibiting a growth rate (CAGR) of 13.10% during 2025-2033.

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How AI is Reshaping the Future of Saudi Arabia Cloud Services Market

• Saudi Arabia is investing heavily in AI-powered cloud infrastructure, with projects like Humain targeting six gigawatts of data center capacity nationally.
• Partnerships like Accenture and Google Cloud advance sovereign cloud and generative AI adoption, boosting enterprise intelligence and operational efficiency.
• The government’s National Data Center Strategy aims to establish 1.5 gigawatts of capacity, making Saudi Arabia a regional leader in cloud and AI services.
• Major providers including Oracle, Microsoft Azure, and STC Cloud have expanded local data centers, improving latency and enabling AI-driven cloud applications.
• AI integration in cloud services is accelerating digital transformation across sectors, supported by $14.9 billion in AI and digital infrastructure investments announced at LEAP 2025.

Saudi Arabia Cloud Services Market Trends & Drivers:

Vision 2030 is accelerating Saudi Arabia cloud services adoption. Saudi Arabia's National Digital Transformation Program mandates that government agencies be cloud-first and share data across ministries without the headache of maintaining servers. This is projected to lead to a migration of 80% of public sector workloads to the cloud, freeing up billions of dollars for innovation, and is supported by $2 billion from the PIF to encourage the development of local data centers. Real talk: In Riyadh's smart city pilots, cloud is streaming real-time traffic data, shortening commute times by 25% and smoothing everyday life. It's not just policy: the cloud is a powerful force in making smart cities easier to build, where innovators can create in secure, scalable environments that feel tailor-made for the Kingdom.

As global hyperscalers flood into Saudi Arabia, the desert kingdom is rapidly becoming a global cloud hub. Oracle's $1.5 billion Riyadh region currently services 500,000 enterprise users. Microsoft Azure is locked into contract with Aramco to help crunch petabytes of oil exploration data and has reduced processing costs by 40% through AI-optimized storage. With 100,000 Saudis being trained through our latest Cloud Skills Increase program, Google is getting talent to fill gaps. Local developers and merchants are keen to optimize, including Noon. Instead of overwhelming it, the influx is empowering Saudi society, and Jeddah boutiques and Dammam factories are leaner, faster, and more open to innovation than ever.

Edge has exploded. For example, low-latency clouds are central to NEOM, a zero-carbon city in Saudi Arabia, which uses the distributed cloud to operate autonomous delivery drones and renewable energy grids, processing 10 terabytes of IoT data every day. Huawei's 5G-cloud convergence has been deployed in 20 cities, increasing speed for healthcare applications by up to 60%. Patient data is transmitted in real-time via smart devices. An IDC study found that 65% of companies in Saudi Arabia are eyeing hybrid edges for security, in sync with the Saudi Data and AI Authority's edge testing and experimentation sandbox. Farmers in AlUla getting crop alerts through edge analytics at every corner, improving production in enormous open spaces, is the purest form of forward-thinking energy. The Saudi market, agile and electric.

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Saudi Arabia Cloud Services Industry Segmentation:

The report has segmented the market into the following categories:

Deployment Insights:

• Public Cloud
• Software-as-a-Service (SaaS)
• Platform-as-a-Service (PaaS)
• Infrastructure-as-a-Service (IaaS)
• Private Cloud

End Use Industry Insights:

• Oil, Gas, and Utilities
• Government and Defense
• Healthcare
• Financial Services
• Manufacturing and Construction
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Cloud Services Market

• Oct 2025: Humain and Qualcomm partner to deploy AI infrastructure in Saudi Arabia, enhancing cloud computing speeds and enabling advanced data processing capabilities.
• Sep 2025: Accenture and Google Cloud collaborate to launch sovereign cloud services, boosting AI adoption in government and private sectors.
• Aug 2025: Saudi’s National Data Center Strategy targets 1.5 GW capacity, driving rapid expansion of cloud infrastructure with AI-powered energy optimization technologies.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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