Saudi Arabia Power Market Outlook 2025-2033: Growth, Trends, and Future Opportunities

Saudi Arabia Power Market Overview

Market Size in 2024: 81.7 GW

Market Forecast in 2033: 104.4 GW

Market Growth Rate 2025-2033: 2.76%

According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2025-2033", The Saudi Arabia power market size was valued at 81.7 GW in 2024. Looking forward, IMARC Group estimates the market to reach 104.4 GW by 2025-2033, exhibiting a CAGR of 2.76% from 2025-2033.

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How AI is Reshaping the Future of Saudi Arabia Power Market

• AI-driven solutions are now helping Saudi utilities predict power demand and optimize grids, reducing operational costs and improving grid reliability for 36 million residents through smarter energy management.
• The Artificial Intelligence Center for Energy, a government initiative, partners with the Ministry of Energy and SDAIA to boost productivity, drive local innovation, and build a world-class digital energy sector.
• Smart grid systems powered by AI now enable real-time energy distribution, cutting energy losses by up to 10% and allowing safer, more efficient network operation.
• Machine learning is being used in solar farms, like those run by King Saud University, to improve resource forecasting accuracy and maximize solar energy capture across the Kingdom.
• High-profile collaborations, such as those with Nvidia and global tech firms, are launching AI data centers to train tens of thousands of specialists and scale sustainable electricity solutions for Saudi Arabia’s future.

Saudi Arabia Power Market Trends & Drivers:

Saudi Arabia’s power market growth is being fueled by the Kingdom’s strong push into renewable energy, especially solar and wind projects. The government has committed substantial funding through initiatives like the National Renewable Energy Program, aiming to diversify the energy mix significantly. Large-scale solar farms combined with AI-powered forecasting tools now boost efficiency by reducing energy waste and maximizing output. This shift not only helps meet rising power demand from households and industry but also supports Saudi Arabia’s goal to lower carbon emissions and develop a more sustainable, clean energy infrastructure for the future.

Another key factor is the integration of advanced AI and digital technologies across the power grid. AI-driven smart grids improve operational efficiency by enabling real-time monitoring and predictive maintenance, which cuts downtime and reduces power losses by as much as 10%. The partnership between government bodies like SDAIA and the Ministry of Energy is accelerating innovations in grid management. These smart grids enhance reliability and reduce costs while supporting the King’s vision of transforming Saudi Arabia into a leading digital economy hub.

Private sector involvement and international collaboration are also driving Saudi’s power market expansion. The government’s focus on attracting private investments has led to substantial equity deals aimed at expanding data centers and AI infrastructure, which support cleaner energy technology and operational scaling. Collaborations with tech giants such as Nvidia to build AI factories for energy solutions create new job opportunities and foster talent development. These partnerships strengthen the market’s technological backbone, helping Saudi Arabia sustain its growing power needs with innovative, cost-effective solutions.

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Saudi Arabia Power Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Generation Source:

• Thermal
• Hydro
• Renewable
• Others

Regional Insights:

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

Competitive Landscape:

• Saudi Electricity Company (SEC)
• National Grid SA
• Acwa Power
• Kepco
• SPPC

Recent News and Developments in Saudi Arabia Power Market

• September 2025: Saudi Arabia launched an AI-powered energy demand forecasting system, improving grid efficiency and reducing power outages by 15% across major cities.
• August 2025: Collaboration between SDAIA and Siemens introduced smart grid solutions, cutting electricity losses by up to 10% and enabling real-time network management.
• July 2025: Nvidia partnered with Saudi firms to establish AI data centers, training thousands of specialists and boosting power sector innovation with advanced machine learning.

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