Data Centers in Beirut
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Beirut – Gateway to the Levant
Beirut serves as a strategic edge location for businesses targeting the Lebanese market directly. For applications sensitive to latency, local colocation is the only viable path to ensure acceptable performance for end-users in the region, despite significant operational and risk factors.
Beirut: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects regional connectivity but limited global peering options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires private network extensions or transit to European hubs. |
| Power Cost | $0.18 – $0.25/kWh | Pricing reflects reliance on fossil fuels and grid instability. |
| Disaster Risk | High (6.6/10) | Significant earthquake and human conflict risk factors are present. |
| Tax Incentives | No | No specific government incentives target data center development. |
| Sales Tax | 11% VAT – as of September 2025 | Standard rate applied to goods and services. |
Network & Connectivity Ecosystem
Beirut's connectivity ecosystem is developing, focused on serving the local market rather than acting as a major international hub.
Carrier Density & Carrier Neutrality: There are over 5 local and regional carriers operating within Beirut's data centers as of September 2025. Carrier-neutral facilities provide options, though the overall density is lower than in major European or Gulf markets.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Beirut as of September 2025. Businesses require private network extensions or IP transit to connect to cloud provider hubs in European cities like Marseille or Athens.
Internet Exchange Points (IXPs): The local ecosystem is anchored by the Beirut Internet Exchange (BEIRUT-IX). This IXP facilitates local traffic peering, which reduces latency and improves performance for users within Lebanon.
Bare Metal: Bare metal services are available from select local and regional providers. These offerings provide dedicated compute capacity for workloads that require high performance and security, with solutions comparable to those from vendors like Leaseweb.
Power Analysis
Average Cost Of Power: Average industrial power costs are estimated between $0.18 – $0.25/kWh as of September 2025. This elevated cost, driven by a heavy reliance on imported fossil fuels and an unstable grid, directly impacts operational budgets.
Power Grid Reliability: The national power grid faces significant reliability challenges. Data centers in Beirut rely heavily on on-site power generation, with multiple redundant diesel generators and extensive fuel storage, to guarantee uptime and meet service level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Colocation facilities in Beirut are located within close proximity of the city's central business district and commercial hubs. This ensures low-latency connectivity for the country's primary financial, media, and technology sectors.
Regional Market Reach: A presence in Beirut offers direct access to Lebanon's 5.5 million people. It also serves as a potential digital connection point to the broader Levant region for specific use cases.
Tax Advantage For Data Centers: Lebanon does not offer specific tax incentives for data center development. Businesses operate under a standard corporate tax structure, with an 11% Value Added Tax (VAT) applied to services as of September 2025.
Natural Disaster Risk
Beirut has a High risk profile for disasters, with an overall INFORM Risk score of 6.6 out of 10 as of September 2025. The primary natural hazard is a very high risk of earthquakes (8.2/10). Other notable environmental risks for this coastal city include tsunamis (3.9/10), coastal floods (3.2/10), and drought (3.0/10).
