Data Centers in Aqaba
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Aqaba, Jordan – Strategic Red Sea Gateway
Aqaba is an emerging edge market for companies needing a strategic digital gateway to the Levant and the Arabian Peninsula. Its location in a Special Economic Zone (SEZ) provides significant tax advantages, making it a compelling option for reducing operational costs while serving high-growth regional markets. This location is ideal for logistics, trade, and content delivery networks requiring a foothold in the region.
Aqaba, Jordan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing connectivity via submarine cable landings on the Red Sea. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Israel or the UAE; private connectivity is available. |
| Power Cost | JOD 0.10 - 0.13/kWh, as of September 2025 | Pricing reflects a grid modernizing with renewables and stable fossil fuel sources. |
| Disaster Risk | Moderate (4.0/10), as of September 2025 | Primary risks are seismic activity and drought; coastal flooding risks are minimal. |
| Tax Incentives | Yes | Special Economic Zone status offers income tax exemptions and other financial benefits. |
| Sales Tax | 16% Sales Tax, as of September 2025 | Standard rate applies; specific exemptions may exist within the SEZ. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, carrier diversity is developing, with several regional and local providers establishing a presence. The market benefits from new submarine cable landings, enhancing international capacity and improving options for carrier-neutral colocation.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in Aqaba, enabling access to 0 cloud regions locally as of September 2025. Accessing major hyperscalers requires network connections to hubs in nearby countries like Israel or the UAE. Private network extensions are the standard method for establishing reliable, low-latency cloud access.
Internet Exchange Points (IXPs): Public peering is not a major feature of Aqaba's ecosystem. Most traffic exchange is handled privately or routed through national internet exchanges located in Amman.
Bare Metal: Bare metal services are available, offering dedicated compute capacity for performance-sensitive applications. Providers like Leaseweb offer solutions in the broader Middle East region, accessible from Aqaba.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between JOD 0.10 and JOD 0.13/kWh as of September 2025. This pricing structure supports predictable operational budgets for compute-heavy workloads and large-scale deployments.
Power Grid Reliability: The power grid in Aqaba, particularly within the SEZ, is engineered for commercial reliability. The generation mix depends heavily on natural gas, which accounts for about 80% of supply, but is supplemented by a growing share of solar and wind power. This reflects a national strategy to improve energy security and sustainability.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Aqaba serve the city's vital port, logistics, and tourism industries. Its strategic location on the Red Sea makes it a critical hub for international trade and the landing point for significant data traffic.
Regional Market Reach: Aqaba provides low-latency access to markets in Jordan, Israel, Egypt, and Saudi Arabia. It is well-positioned to serve as a digital crossroads for the northern Red Sea region and the wider Levant.
Tax Advantage For Data Centers: The Aqaba Special Economic Zone provides significant financial incentives for technology investment. Data center operators can benefit from exemptions on income tax, which dramatically reduces long-term operational expenditures and improves total cost of ownership.
Natural Disaster Risk
Aqaba has a moderate overall disaster risk profile with a score of 4.0 out of 10, as of September 2025. The risk assessment indicates that operators should engineer facilities to withstand specific, well-understood regional hazards.
The primary natural hazards are:
- Earthquake: High risk (7.3/10) due to proximity to the Dead Sea Rift system, a major fault line.
- Drought: High risk (6.7/10), impacting water resources and potentially cooling strategies, a common concern throughout the region.
Other risks, such as coastal flooding and tsunamis, are rated as negligible for this location.
