Saudi modular data center market to top $1bn by 2030

By Editorial September 30, 2026

Modular data center infrastructure in Saudi Arabia

Saudi Arabia’s modular data center market is projected to more than double in five years as demand grows for cloud, AI and rapidly deployable digital infrastructure.

According to new MarketsandMarkets research, the market is expected to increase from $451.7 million in 2025 to $1.015 billion by 2030. A compound annual growth rate is projected at 17.6%.

Demand is being driven by the Kingdom’s expanding cloud infrastructure, AI applications, edge computing and 5G networks. Government and enterprise digitalization is also increasing the need for data center capacity that can be deployed and scaled more rapidly than conventional facilities.

AI and cloud drive infrastructure demand

MarketsandMarkets says prefabricated modular systems are gaining ground as organizations seek faster deployment, scalability and lower on-site complexity.

The trend is particularly relevant to hyperscale cloud and AI infrastructure, where power, cooling, racks and monitoring systems need to be deployed as integrated systems. Modular designs also allow capacity to be added in stages as computing requirements increase.

Saudi Arabia’s climate is another factor shaping the market. Data center infrastructure must operate in high temperatures and withstand dust and sand exposure, increasing demand for suitable enclosures and advanced cooling technologies.

Skid-mounted systems are forecast to be the fastest-growing form factor, with a CAGR of 18.1% through 2030. Large data centers are expected to account for the largest market segment, while outdoor deployments are projected to record the fastest growth.

Global market heads toward $93.6 billion

The Saudi expansion comes as the global modular data center market is forecast to grow from $41 billion in 2026 to $93.6 billion by 2031, at an annual rate of 18%.

Global growth drivers are along the trends recorded in Saudi Arabia. Prefabricated systems can shorten deployment times and allow operators to expand computing and power capacity more rapidly than with conventional data center construction.

Key suppliers identified in the Saudi market include Dell Technologies, Vertiv, Schneider Electric, Huawei, Eaton, Rittal, Siemens, Johnson Controls, STULZ and Mitsubishi Electric, alongside Saudi companies including Podtech Data Centers, ICS Arabia, Ezditek and ALFANAR.