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Saudi Arabia Data Center Networking Market 2026-2031 - Growth Driven by Cloud Adoption and Vision 2030 Digital Transformation Initiatives

globenewswire.com
ORCL Oracle launched its second public cloud region in Saudi Arabia, indicating expansion and investment in the region's growing data center and AI infrastructure. MSFT Microsoft completed construction of its Saudi cloud region, signaling significant investment and expansion in the region's digital transformation and AI infrastructure. AMZN AWS has confirmed plans for a 2026 launch of a cloud region in Saudi Arabia, indicating significant investment and expansion in the region's digital transformation and AI infrastructure. CSCO Cisco Systems, Inc. is listed as a key company in the Saudi Arabia data center networking market landscape, but no specific sentiment is attributed to it in the article. DELL Dell Technologies Inc. is mentioned as a company in the competitive landscape of the Saudi Arabia data center networking market, without specific sentiment. HPE Hewlett Packard Enterprise Company is listed as a key player in the Saudi Arabia data center networking market, but the article does not provide specific sentiment. ARCC Arista Networks, Inc. is mentioned as a company within the competitive landscape of the Saudi Arabia data center networking market, with no specific sentiment detailed. EXTR Extreme Networks, Inc. is mentioned as a company in the competitive landscape of the Saudi Arabia data center networking market, without specific sentiment. NOK Nokia Corporation is listed as a company in the competitive landscape for the Saudi Arabia data center networking market, but no specific sentiment is detailed. NVDA NVIDIA Corporation is positioned to benefit from the strong demand for AI infrastructure and GPU-dense computing environments in Saudi Arabia's data center market. IBM IBM Corporation is mentioned as a company in the competitive landscape for the Saudi Arabia data center networking market, with no specific sentiment detailed. SWX Schneider Electric SE is listed as a company in the competitive landscape of the Saudi Arabia data center networking market, but no specific sentiment is provided. ETN Eaton Corporation plc is mentioned as a company in the competitive landscape for the Saudi Arabia data center networking market, with no specific sentiment detailed. NTAP NetApp, Inc. is listed as a company in the competitive landscape of the Saudi Arabia data center networking market, but the article does not provide specific sentiment. CIEN Ciena Corporation is mentioned as a company in the competitive landscape for the Saudi Arabia data center networking market, with no specific sentiment detailed. FTNT Fortinet, Inc. is listed as a company in the competitive landscape of the Saudi Arabia data center networking market, but no specific sentiment is provided.

Saudi Arabia Data Center Networking Market 2026-2031 - Growth Driven by Cloud Adoption and Vision 2030 Digital Transformation Initiatives Dublin, Aug. 26, 2026 (GLOBE NEWSWIRE) -- The "Saudi Arabia Data Center Networking - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

Saudi Arabia Data Center Networking Market to Reach USD 914.86 Million by 2031, Growing at 15.27% CAGR

The Saudi Arabia data center networking market is projected to grow from USD 390 million in 2025 to USD 449.55 million in 2026 before reaching USD 914.86 million by 2031. The market is forecast to expand at a compound annual growth rate of 15.27% from 2026 to 2031, supported by national digital transformation programs, hyperscale cloud investments, artificial intelligence infrastructure, and data-localization requirements.

Vision 2030 Accelerates Data Center Infrastructure Investment

Saudi Arabia's USD 18 billion national data center program is a major catalyst for networking infrastructure demand. The initiative targets more than 1,300 MW of capacity by 2030, substantially exceeding the estimated 360 MW capacity gap expected over the next five years. Each additional megawatt of data center capacity can generate an estimated 15% to 20% increase in networking expenditure, creating opportunities across Ethernet switching, optical transport, network security, and software-defined networking solutions.

Local technology and infrastructure providers are expanding their capabilities to address hyperscale requirements. Al Moammar Information Systems, for example, is scaling its capacity ambitions from 300 MW toward 1,000 MW. The national program's emphasis on renewable-energy power purchase agreements is also encouraging networking vendors to develop equipment optimized for energy efficiency, thermal performance, and reliable operation in desert environments.

Cloud Regions and AI Workloads Drive Advanced Networking Adoption

The rollout of hyperscale cloud regions is accelerating the modernization of Saudi Arabia's data center networks. Oracle launched its second public cloud region in the Kingdom in August 2024 with a strong focus on artificial intelligence. Microsoft completed construction of its Saudi cloud region in December 2024, while AWS has confirmed plans for a 2026 launch.

These developments are increasing demand for spine-leaf network architectures, 400 GbE optical connectivity, programmable interfaces, open-standard automation, and advanced telemetry. As AI and high-performance computing workloads become more prominent, operators are transitioning away from traditional three-tier network designs toward scalable, low-latency architectures. This shift is also supporting the development of local software capabilities in intent-based networking, automation, analytics, and network performance management.

Imported Hardware and Skills Shortages Present Market Challenges

Despite strong growth prospects, the Saudi Arabia data center networking market faces supply-chain and cost pressures. More than 85% of network hardware is imported, exposing operators to currency movements, international logistics delays, export controls, and extended equipment lead times. Local-content requirements can further increase costs for smaller suppliers that must establish partial assembly or testing capabilities within the Kingdom.

A shortage of certified professionals in advanced networking also remains a constraint. Demand is rising for specialists in software-defined networking, Kubernetes networking, automation, Zero Trust segmentation, and high-speed optical infrastructure. This gap is increasing reliance on installation, integration, consulting, training, support, and managed network services.

Additional market drivers include AI and high-performance computing projects such as Aramco's Dammam-7 infrastructure, along with data-localization mandates under the Cloud Computing Regulatory Framework. These requirements are encouraging organizations to deploy secure, resilient, and locally hosted data center environments.

Services Outpace Product Growth as Network Complexity Increases

Networking products accounted for 68.63% of the market in 2025, led by Ethernet switches used in spine-leaf architectures. Demand is also expanding for optical interconnects, security appliances, application delivery technology, and software-defined networking controllers. However, product revenue growth is moderating as hyperscale operators negotiate volume discounts and adopt open-switching hardware.

Services are forecast to grow at 18.08% annually as organizations seek support with integration, compliance, network operations, and performance optimization. Managed network services are increasingly using AI-driven analytics to address congestion, latency, availability, and energy consumption. This transition is shifting vendor revenue models from one-time equipment sales toward recurring service contracts.

Government and Defense Demand Raises Technical Standards

IT and telecommunications represented 35.92% of the Saudi Arabia data center networking market in 2025, supported by established metro fiber networks and submarine cable assets. Government and defense, however, are forecast to grow at 17.62% CAGR through 2031 as sovereign cloud mandates and Saudi Data and AI Authority initiatives stimulate investment in secure, GPU-dense computing environments.

Public-sector procurement increasingly requires deterministic latency, on-chip encryption, advanced segmentation, multi-factor cryptography, and air-gapped infrastructure. These standards are raising technical expectations across the market while creating opportunities for premium networking platforms and managed service providers. Banking and financial services organizations are also maintaining steady investment, prioritizing regulatory compliance, resilience, cybersecurity, and operational continuity.

Overall, Vision 2030, cloud region expansion, AI infrastructure, sovereign data requirements, and growing demand for managed services are expected to sustain strong growth in the Saudi Arabia data center networking market through 2031.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

4.1 Market Overview

4.2 Market Drivers

4.2.1 Vision 2030 USD 18 bn national data-center program

4.2.2 Hyperscale cloud region roll-outs (AWS, Google, Oracle)

4.2.3 AI/HPC build-outs

4.2.4 Renewable-energy PPAs enabling green DC networking

4.2.5 Data-localization mandates (CCRF)

4.2.6 New submarine-cable landings boosting interconnect

4.3 Market Restraints

4.3.1 High capex and import-driven supply chain exposure

4.3.2 Certified talent shortage in advanced networking

4.3.3 Data-sovereignty and human-rights scrutiny

4.3.4 Cooling-water scarcity and sustainability limits

4.4 Value / Supply-Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces

4.7.1 Threat of New Entrants

4.7.2 Bargaining Power of Buyers

4.7.3 Bargaining Power of Suppliers

4.7.4 Threat of Substitutes

4.7.5 Competitive Rivalry

4.8 Assessment of the Impact on Macro Economic Trends on the Market

5 MARKET SIZE and GROWTH FORECASTS (VALUE)

5.1 By Component

5.1.1 Products

5.1.1.1 Ethernet Switches

5.1.1.2 Routers

5.1.1.3 Storage Area Network (SAN)

5.1.1.4 Application Delivery Controllers (ADC)

5.1.1.5 Network Security Appliances

5.1.1.6 Software-Defined Networking (SDN) Controllers

5.1.1.7 Optical Interconnects

5.1.2 Services

5.1.2.1 Installation and Integration

5.1.2.2 Training and Consulting

5.1.2.3 Support and Maintenance

5.1.2.4 Managed Network Services

5.2 By End-User

5.2.1 IT and Telecommunications

5.2.2 Banking, Financial Services and Insurance (BFSI)

5.2.3 Government and Defense

5.2.4 Media and Entertainment

5.2.5 Healthcare and Life Sciences

5.2.6 Manufacturing and Industrial

5.2.7 Other End-Users

5.3 By Data-Center Type

5.3.1 Colocation

5.3.2 Hyperscalers/Cloud Service Providers

5.3.3 Edge/Micro Data Centers

5.4 By Bandwidth

5.4.1 LessThan equals to 10 GbE

5.4.2 25-40 GbE

5.4.3 50-100 GbE

5.4.4 Greater Than 100 GbE

6 COMPETITIVE LANDSCAPE

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, Recent Developments)

6.4.1 Cisco Systems, Inc.

6.4.2 Huawei Technologies Co., Ltd.

6.4.3 Dell Technologies Inc.

6.4.4 Hewlett Packard Enterprise Company

6.4.5 Arista Networks, Inc.

6.4.6 Juniper Networks, Inc.

6.4.7 Extreme Networks, Inc.

6.4.8 Nokia Corporation

6.4.9 NVIDIA Corporation

6.4.10 VMware, Inc.

6.4.11 IBM Corporation

6.4.12 Schneider Electric SE

6.4.13 Eaton Corporation plc

6.4.14 NetApp, Inc.

6.4.15 Ciena Corporation

6.4.16 Fortinet, Inc.

6.4.17 Saudi Telecom Company (stc)

6.4.18 Solutions by stc Company

6.4.19 Etihad Etisalat Co. (Mobily)

6.4.20 Mobile Telecommunication Company Saudi Arabia (Zain KSA)

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-Space and Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/3dbos5

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