Data Centers in Jeddah
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Jeddah – Gateway to Saudi Arabia's Digital Economy
Jeddah is the primary interconnection and commercial hub for western Saudi Arabia, offering strategic access to subsea cable landing stations and the Kingdom's growing digital marketplace. For businesses targeting the Middle East and North Africa, Jeddah's infrastructure provides a critical footprint for low-latency content delivery and cloud access, directly impacting service performance and regional user engagement.
Jeddah: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access, but with developing terrestrial options. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Direct access to Oracle Cloud is available locally. |
| Power Cost | SAR 0.18 - 0.25/kWh (est.) | Fossil fuels dominate the grid, keeping industrial power costs competitive. |
| Disaster Risk | Low (2.4/10) – as of September 2025 | Primary risks are environmental, such as drought and flooding. |
| Tax Incentives | Yes | A national high-tech investment fund supports qualified projects. |
| Sales Tax | 15% VAT – as of September 2025 | Standard national value-added tax rate applies. |
Network & Connectivity Ecosystem
Jeddah stands as Saudi Arabia's key international gateway, thanks to its proximity to major subsea cable landing stations in the Red Sea. This provides the lowest latency paths to Europe, Africa, and parts of Asia.
Carrier Density & Carrier Neutrality: The market is served by over 15 network carriers as of September 2025. Multiple carrier-neutral data centers provide competitive interconnection options.
Direct Cloud On-Ramps: The market features over 1 on-ramp, enabling dedicated, private access to 1 cloud region as of September 2025. Oracle Cloud has a direct presence in Jeddah.
Internet Exchange Points (IXPs): The primary exchange is the Saudi Arabian Internet Exchange (SAIX), which facilitates the majority of in-country traffic exchange. Most hyperscale peering is handled privately within data centers.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers such as Hivelocity offer services in the region.
Power Analysis
Average Cost Of Power: Industrial electricity is estimated between SAR 0.18 and SAR 0.25 per kWh as of September 2025. The country's vast fossil fuel reserves ensure that power costs remain predictable and competitive for high-density deployments. The power mix is approximately 99% fossil fuels.
Power Grid Reliability: The power grid supporting Jeddah's main industrial and data center zones is well-engineered, drawing from a national grid designed for high reliability. Key facilities are typically supported by redundant substations to ensure consistent uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Jeddah's data centers serve the city's significant logistics, trade, and commercial sectors. Their location is vital for supporting the operations of Jeddah Islamic Port, a major shipping hub, and the financial institutions driving Saudi Arabia's Vision 2030 initiatives.
Regional Market Reach: As the second-largest city in Saudi Arabia and a major Red Sea port, Jeddah offers excellent digital access to the entire western region of the country and serves as a connectivity hub for North and East Africa.
Tax Advantage For Data Centers: Saudi Arabia encourages high-tech investment through various national programs. The availability of a government-backed investment fund helps de-risk capital expenditures and accelerate the growth of digital infrastructure projects in the country.
Natural Disaster Risk
Jeddah has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.4 out of 10 as of September 2025. While seismic and weather-related events are minor, operators should account for environmental hazards.
Key risks include:
- Drought (5.0/10)
- River Flood (4.8/10)
- Coastal Flood (4.7/10)
- Earthquake (1.8/10)
