Saudi Arabia Data Center Physical Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2023 - 2029)

The Saudi Arabia Data Center Physical Security Market size is estimated at USD 18.53 million in 2024, and is expected to reach USD 48.55 million by 2029, growing at a CAGR of 25.20% during the forecast period (2024-2029).

Security measures can be categorized into four, namely perimeter security, computer room controls, facility controls, and cabinet controls. The first layer of data center security discourages, detects, and delays any unauthorized entry of personnel at the perimeter. In case of any infringement in the perimeter monitoring, the second layer of defense denies access. It is an access control system utilizing card swipes or biometrics.

The third layer of physical security further restricts access through various verification methods, including monitoring all restricted areas, deploying entry restrictions such as turnstiles, providing biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, providing VCA, and using radio frequency identification. The first three layers ensure the entry of only authorized people. Further security to restrict admission includes cabinet locking mechanisms. This layer addresses the fear of an 'insider threat,' such as a malicious employee.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Saudi Arabian data center physical security market is expected to reach 854.8 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 3.4 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 171,000 units by 2029. Riyadh is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are around 5 submarine cable systems connecting Saudi Arabia, and many are expected to be under construction during the forecast period.

Saudi Arabia Data Center Physical Security Market Trends

IT and Telecom to Hold Significant Share

• IT players see data center physical security as a major concern when moving to a third-party data center. Telecom data centers are owned and operated by a telecom or service provider company, such as Deutsche Telekom AG or AT&T. As they are primarily responsible for content delivery and facilitating mobile and cloud services, telecom data centers require very high connectivity and security.
• Telecom data centers are increasing in the country due to rising data traffic and networking. It is expected that with the increase in 5G deployment, the demand for data centers in telecom will increase significantly, leading to a major demand for physical security.
• In July 2023, Saudi Telecom subsidiary Center3 expanded one of its data centers in Riyadh. The company is increasing capacity at existing facilities in Riyadh and Jeddah and developing new data centers in Jeddah, Riyadh, Dammam, and other locations around the Kingdom.
• The arrival of 5G is expected to bring a major increase in speeds, low latencies, and an unforeseen level of network capabilities. This will set the stage for more advanced and novel applications, enabling everything to be more connected in real-time, all the time. Saudi Arabia maintained its ranking as the fourth-fastest country in the world in terms of 5G internet speeds, with an average of 264.7 Mbps. It was the seventh-fastest country overall for mobile internet speeds, averaging 109.48 Mbps in Q4 2020.
• In 2020, 5,358 new 5G towers were installed nationwide, bringing the total to 12,302 5G towers at the end of 2020. This number is expected to rise as the spectrum is allocated for commercial purposes and the demand for faster internet services rises. The industry's expansion can be attributed to the rising demand for physical security in the data center.

Access Control Solutions to Register Significant Growth

• Access control is one of the most efficient, financially profitable, and scalable ways of securing data centers. Protecting the data center through smart access control systems for sensitive areas is currently a priority. Biometric access control systems that are hierarchical, scalable, and designed as bespoke solutions are the most efficient alternatives to comprehensively protect data centers.
• Saudi Irsal has experience providing design consultancy and implementation for data centers, covering security requirements, storage capacity, and disaster recovery resources. Its services have been utilized with telecom operators and commercial and industrial sectors. This includes physical security measures, such as controlled access to data center facilities.
• Although the hardware resides onsite, the software and servers are moved from a company’s premises and stored within data centers. Security as a service provider generally charges a monthly fee on a per-door or per-user basis. Since all the information is stored on remote servers, AcaaS (Access-Control-as-a-Service) is available at lower costs than legacy access control.
• ACaaS vendors offer partnership opportunities for integrators, value-added resellers (VARs), and managed services providers (MSPs), including training. Players such as Assa Abloy provide SMARTair offerings, which are access control systems for small- to medium-sized businesses that offer intelligent solutions.
• With increasing data center construction due to cloud deployment, the demand for access control solutions is expected to increase in the country. Under Saudi Vision 2030, foreign investment is encouraged, particularly in the technology industry. The implementation of the cloud-first strategy in 2019 also accelerated the uptake of innovative technologies such as AI for Industrial 4.0. The cloud computing regulatory framework, adopted by the Communications and Technology Information Commission, intends to improve cloud computing services in the country and promote regulatory openness.

Saudi Arabia Data Center Physical Security Industry Overview

The Saudi Arabian data center physical security market is fragmented among the players and has gained a competitive edge in recent years. A few major players in the market include Securitas Technology, Bosch Sicherheitssysteme GmbH, and others. These major players, with a prominent market share, focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

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Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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