Data Centers in Gaza City
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Gaza City – Local Resilience for Critical Digital Operations
Executive Summary
Gaza City is a mandatory technical endpoint for humanitarian organizations and local commercial entities requiring absolute data residency. This market provides essential low-latency access to a concentrated population where service availability is the highest priority for operational continuity. Maintaining local infrastructure is the only reliable way to guarantee digital performance for over two million users in the region.
Gaza City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable local transit with regional backhaul. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Tel Aviv. |
| Power Cost | $0.18/kWh – as of September 2025 | Fossil fuel dependent grid with local redundancy. |
| Disaster Risk | High (6.4/10) – as of September 2025 | Risk driven by seismic potential and regional factors. |
| Tax Incentives | No – as of September 2025 | No specific data center incentives available. |
| Sales Tax | 16.00% VAT – as of September 2025 | Standard territory-wide value added tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of September 2025, the market supports 5 to 10 providers consisting of local and regional carriers. This ecosystem provides essential connectivity for residents and international organizations, with neutral options managing specialized traffic requirements for resilient service delivery.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in this location as of September 2025. Enterprises requiring high-speed access to AWS, Google Cloud (GCP), or Microsoft Azure typically utilize private line extensions or protected waves to the nearest hub city, Tel Aviv, to maintain performance.
Internet Exchange Points (IXPs): Public peering options are limited within the metro area as of September 2025. Most local traffic is managed through private peering arrangements or routed via national exchange points to optimize local latency and reduce transit costs for regional providers.
Bare Metal: High-performance compute requirements are met through regional specialists such as Latitude.sh as of September 2025. These providers offer reliable infrastructure for specialized workloads that cannot be moved to the public cloud due to latency or residency requirements.
Power Analysis
Average Cost Of Power: The estimated cost for industrial electricity is $0.18/kWh as of September 2025. The power mix is approximately 100% fossil fuels with negligible contributions from renewables or nuclear sources. This pricing reflects specific logistics of fuel supply, making on-site energy efficiency a core priority for facility operators.
Power Grid Reliability: The local grid supports critical functions through multi-substation support and site-specific redundant generation. Data centers prioritize significant on-site fuel storage to manage grid instability and ensure constant uptime for systems supporting local infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are centrally located near major commercial corridors like Omar al-Mokhtar Street. This proximity is vital for local financial services and NGOs that require physical access to hardware and immediate low-latency connections for their headquarters and field offices.
Regional Market Reach: A presence in Gaza City provides direct access to a population of approximately 2 million people. It serves as the primary technical hub for the Gaza Strip, making it the most effective location for delivering digital services to the local demographic without international transit lag.
Tax Advantage For Data Centers: There are no specific tax incentives for data center operators in this jurisdiction as of September 2025. The primary financial benefit stems from local data residency, which eliminates the high costs and potential interruptions associated with international data transit.
Natural Disaster Risk
Gaza City carries an overall risk profile of High (6.4/10) as of September 2025. While external factors are significant, several natural hazards require specific infrastructure mitigation strategies to maintain uptime and structural integrity.
- Earthquake (4.7/10): This represents the primary natural hazard, requiring facilities to meet specific seismic reinforcement standards for mission-critical hardware.
- Epidemic (4.1/10): Risk scores in this category require data centers to maintain strict access protocols and remote management capabilities to ensure staffing continuity.
- Tsunami (0.9/10): This is a low-level coastal risk considered a minor factor for long-term facility planning and site selection.
- Other natural hazards, including river flooding, tropical cyclones, and drought, are rated at zero, representing minimal risk to physical digital infrastructure.
