Data Centers in Gaza City
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Gaza City – Core of Localized Digital Infrastructure
Gaza City represents a unique and highly challenging digital infrastructure market. It is exclusively for organizations that require a physical IT presence within the territory, such as NGOs, humanitarian agencies, and local service providers. The primary driver for using local infrastructure is to ensure the lowest possible latency for critical applications serving the local population under difficult connectivity conditions.
Gaza City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Service levels face significant infrastructure and political challenges. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via terrestrial links to hubs like Tel Aviv. |
| Power Cost | ILS 0.60–0.90/kWh (est.) | Pricing and availability are highly volatile and dependent on fuel imports. |
| Disaster Risk | High (6.4/10) – as of September 2025 | Dominated by human-related hazards and infrastructure vulnerability. |
| Tax Incentives | No | The focus is on basic economic function, not tech incentives. |
| Sales Tax | 16% VAT (est.) – as of September 2025 | Standard VAT rates apply, but are subject to frequent policy changes. |
Network & Connectivity Ecosystem
Digital connectivity in Gaza City is constrained and lacks the diversity of major international hubs. The ecosystem is built for local delivery under challenging circumstances.
Carrier Density & Carrier Neutrality: Carrier options are limited, with service concentrated among a few local and regional telecom providers as of September 2025. The single facility provides a focal point for interconnection within the territory.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Gaza City. Organizations requiring access to major cloud providers like AWS, Google Cloud, or Microsoft Azure must rely on terrestrial backhaul to data centers in Israel, primarily in the Tel Aviv area.
Internet Exchange Points (IXPs): No public Internet Exchange Points operate within Gaza. Peering is typically handled privately between service providers or routed through exchanges in neighboring countries.
Bare Metal: Bare metal server availability is extremely limited. Any deployments would be sourced from local hosting providers rather than major international bare metal companies.
Power Analysis
Power infrastructure is the most significant operational challenge for any data center deployment in this market.
Average Cost Of Power: The estimated cost for industrial power ranges from ILS 0.60 to ILS 0.90/kWh as of September 2025. This cost is subject to extreme fluctuation based on fuel availability, making predictable operational budgeting very difficult.
Power Grid Reliability: The local power grid is unreliable. Data center operations depend almost entirely on private, on-site power generation, primarily from diesel generators, to maintain uptime.
Market Access, Business & Tax Climate
The business environment is shaped by the region's unique geopolitical and economic conditions.
Proximity To Key Business Districts: The data center serves local government entities, non-governmental organizations (NGOs), and the few businesses operating within Gaza City itself, providing essential local connectivity.
Regional Market Reach: The market's effective reach is confined to the Gaza Strip. It is not a hub for serving wider regional or international markets.
Tax Advantage For Data Centers: There are no specific tax incentives designed to attract data center investment. The broader economic framework does not prioritize specialized benefits for the technology sector.
Natural Disaster Risk
The region's overall risk profile is rated as High, with a score of 6.4 out of 10 according to the INFORM Risk Index as of September 2025. While human-related conflict and institutional fragility are the dominant factors, several natural hazards are present.
Key natural risks include:
- Earthquake: 4.7/10
- Epidemic: 4.1/10
- Tsunami: 0.9/10
The most critical challenge is not the hazards themselves, but the extremely low coping capacity, with institutional and infrastructure scores (7.8 and 1.3 respectively) indicating severe difficulty in responding to any large-scale event.
