Academic study of cloud computing is an emerging research field in Saudi Arabia. Saudi Arabia represents the largest economy in the Arab Gulf region, which makes it a potential market of cloud computing technologies. This cross-sectional exploratory empirical research is based on technology–organization–environment (TOE) framework, targeting higher education institutions. In this study, the factors that affect the cloud adoption by higher education institutions were identified and tested using SmartPLS software, a powerful statistical analysis tool for structural equation modeling. Three factors were found significant in this context. Relative advantage, complexity and data concern were the most significant factors. The model explained 47.9 % of the total adoption variance. The findings offer education institutions and cloud computing service providers with better understanding of factors affecting the adoption of cloud computing.