Data Centers in Al Hudaydah
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Al Hudaydah – Strategic Red Sea Connectivity for Global Trade
Executive Summary
This market serves maritime, logistics, and energy firms requiring a physical presence near one of the most vital shipping lanes on earth. Al Hudaydah provides the critical local data sovereignty and port-side latency necessary for high-stakes trade and supply chain management in the Red Sea corridor. Establishing infrastructure here ensures direct proximity to the primary entry point for goods serving Western Yemen and the Tihama region.
Al Hudaydah: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional access as of September 2025. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are Riyadh and Dubai. |
| Power Cost | $0.18–$0.28/kWh – as of September 2025 | High costs due to fossil fuel reliance. |
| Disaster Risk | High (8.2/10) – as of September 2025 | Significant exposure to river and coastal flooding. |
| Tax Incentives | Yes | Exemptions for import tariffs and VAT on equipment. |
| Sales Tax | 5.00% VAT – as of September 2025 | Standard national rate for services. |
Network & Connectivity Ecosystem
Al Hudaydah acts as a specialized digital gateway for the Tihama region. While the market is concentrated, it provides the essential links required for port operations and regional stability.
Carrier Density & Carrier Neutrality: Carrier count: fewer than 5 – as of September 2025. The connectivity landscape is dominated by a few providers focused on maritime logistics and government services. Carrier neutrality is limited, with most infrastructure supporting specific industrial requirements.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. There are no native on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within the city as of September 2025. Enterprise traffic typically routes through private network interfaces to major hubs in Riyadh or Dubai to reach global cloud platforms.
Internet Exchange Points (IXPs): Most peering is managed via the national hub in Sanaa or through private interconnects between local providers to manage regional traffic flow for the port.
Bare Metal: Sturdy bare metal options are available through global providers like Latitude.sh or Hivelocity, which can be deployed to support high-performance workloads without the overhead of local virtualization management.
Power Analysis
Energy infrastructure is heavily prioritized for industrial and port operations to maintain trade continuity.
Average Cost Of Power: $0.18–$0.28/kWh, as of September 2025. The energy mix consists of nearly 100% fossil fuels, making power costs sensitive to global fuel price fluctuations. This price range reflects the premium paid for industrial-grade stability in a challenging energy environment.
Power Grid Reliability: Major data center corridors utilize dedicated industrial feeds to maintain uptime. The infrastructure is well-engineered to support the Port of Al Hudaydah, providing redundant paths to ensure continuous service for maritime systems.
Market Access, Business & Tax Climate
The business environment is centered on the flow of goods and regional trade efficiency.
Proximity To Key Business Districts: Data centers are located near the Airport Road and the Port of Al Hudaydah. This proximity is vital for shipping agents and logistics companies that require real-time data processing for cargo tracking and customs clearance.
Regional Market Reach: Al Hudaydah is the primary maritime gateway for Western Yemen, providing a digital bridge to millions of consumers and businesses throughout the Tihama region.
Tax Advantage For Data Centers: The government provides specific financial benefits for digital infrastructure projects. Specifically, operators can leverage exemptions from import tariffs and VAT on production equipment, which significantly reduces the initial capital expenditure for hardware refreshes.
Natural Disaster Risk
Al Hudaydah carries an overall risk score of High (8.2/10) as of September 2025. As a coastal city, the risk profile is dominated by water-related hazards and regional environmental factors.
- River Flood: 6.0 (High)
- Coastal Flood: 4.8 (Moderate)
- Drought: 4.3 (Moderate)
- Tsunami: 3.6 (Moderate) – Indirect regional risk
- Tropical Cyclone: 3.5 (Moderate)
Other natural hazards are minor or are not listed for this specific metro area. Facilities in this market are typically purpose-built with elevated foundations and reinforced structures to manage these specific environmental requirements.
