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Data Centers in Gaza City

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Gaza City – Resilient Infrastructure for Challenging Environments

Gaza City presents a unique and challenging operational environment. Digital infrastructure is focused on basic resilience and maintaining connectivity under difficult circumstances. This market is primarily for organizations with an essential mandate to operate locally, such as NGOs, governmental bodies, and service providers who require in-territory data processing and communications.

Gaza City: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReflects regional connections rather than a major international hub.
Direct Cloud On-Ramps0 – as of September 2025Connectivity relies on terrestrial links to major hubs like Tel Aviv or Amman.
Power CostEst. ILS 0.55-0.75/kWhBased on regional averages; actual costs vary significantly with availability.
Disaster RiskHigh (6.4/10) – as of September 2025Dominated by human-related hazards; natural risks are secondary but present.
Tax IncentivesNoNo specific data center tax incentives are currently offered.
Sales TaxEst. 16-18% VAT – as of September 2025Standard value-added tax is estimated based on regional norms.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier options are limited, with services primarily provided by a few regional operators as of September 2025. True carrier-neutral facilities are not a feature of this market; connectivity is managed through incumbent providers.

Direct Cloud On-Ramps: There are no direct cloud on-ramps in Gaza City. Access to hyperscale clouds like AWS, Google Cloud, or Microsoft Azure requires transit to facilities in nearby markets such as Tel Aviv, Israel. Private network extensions can be established to connect to these cloud regions.

Internet Exchange Points (IXPs): Public peering is not established in Gaza City. Traffic exchange is handled privately between local service providers or routed through regional exchanges in neighboring countries.

Bare Metal: Bare metal server availability is extremely limited and typically sourced from providers in nearby regional hubs. General availability is not a characteristic of this market.

Power Analysis

Average Cost Of Power: Industrial electricity pricing is difficult to confirm due to variable supply and sourcing. Estimates place costs in the range of ILS 0.55-0.75/kWh as of September 2025, though availability is the primary cost driver. The grid is approximately 100% fossil-fuel-based.

Power Grid Reliability: The power infrastructure faces significant reliability challenges. Organizations operating here require extensive on-site power generation and battery backup systems to ensure operational continuity. The grid cannot be considered reliable for mission-critical IT workloads.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data infrastructure is decentralized and primarily serves immediate local needs of NGOs, media outlets, and government services within Gaza City itself.

Regional Market Reach: The market's focus is hyper-local. It serves the immediate population and organizations operating within the Gaza Strip, not as a hub for broader regional service delivery.

Tax Advantage For Data Centers: There are no specific tax incentives designed to attract data center investment. The economic climate is not structured to support such specialized development.

Natural Disaster Risk

Gaza City has a high overall risk profile, rated 6.4 out of 10 according to the INFORM Risk Model as of September 2025. While human-related conflict and institutional frailty are the primary drivers, several natural hazards contribute to the risk landscape.

Key natural risks include:

  • Earthquake: Moderate risk (4.7/10) due to regional fault lines.
  • Epidemic: Moderate risk (4.1/10) exacerbated by dense population and infrastructure challenges.
  • Tsunami: Low risk (0.9/10).
  • Other Hazards: Risks from floods, cyclones, and drought are rated as minimal.
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