Data Centers in Jeddah
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Jeddah – Digital Gateway to the Red Sea Basin
Executive Summary
Jeddah serves as the primary subsea landing station and digital gateway for Western Saudi Arabia, offering mission-critical connectivity for the Red Sea basin. This market is a top choice for enterprises requiring low-latency access to the Middle Eastern trade corridor and high-speed transit between Europe, Asia, and East Africa. Strategic placement here ensures a resilient foundation for high-stakes digital trade and financial services.
Jeddah: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea landing presence ensures international backhaul. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Local access to Oracle Cloud is available. |
| Power Cost | $0.05 – $0.07/kWh – as of September 2025 | Regional energy abundance maintains highly competitive rates. |
| Disaster Risk | Low (2.4/10) – as of September 2025 | Stable geography with predictable environmental variables. |
| Tax Incentives | Yes | Supported by the Saudi High-Tech Investment Fund. |
| Sales Tax | 15% VAT – as of September 2025 | Standard national value-added tax applies. |
Network & Connectivity Ecosystem
Jeddah functions as a vital interconnection point for global data traffic, leveraging its position on the Red Sea.
Carrier Density & Carrier Neutrality: Carrier count: over 20, as of September 2025. While the market features major national providers, there is a growing presence of regional and international carriers offering diverse pathing options for redundancy.
Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions as of September 2025. Oracle Cloud maintains a direct presence, providing secure and predictable performance for specialized enterprise workloads.
Internet Exchange Points (IXPs): JEDIX serves as the primary exchange, keeping local traffic within the region and significantly reducing latency for users across the Hejaz region as of September 2025.
Bare Metal: General availability is provided through regional leaders and global providers like Hivelocity as of September 2025.
Power Analysis
Energy availability in Jeddah is consistent, supported by a grid built for heavy industrial and cooling requirements.
Average Cost Of Power: $0.05 – $0.07/kWh, as of September 2025. The energy mix consists of approximately 99% fossil fuels and 1% renewables, mostly solar. These rates are among the most competitive in the Middle East, providing a clear cost advantage for high-density compute deployments.
Power Grid Reliability: The grid is well-engineered with multi-substation support to manage the extreme cooling requirements of the Arabian Peninsula. Redundancy is a standard feature in major data center corridors to ensure high uptime as of September 2025.
Market Access, Business & Tax Climate
Jeddah is a cornerstone of the Saudi Vision 2030 initiative, attracting significant digital infrastructure investment.
Proximity To Key Business Districts: Data centers are strategically located near the Jeddah Islamic Port and King Abdullah Economic City. This placement is vital for logistics, trade-tech, and financial services firms operating in these economic zones.
Regional Market Reach: Jeddah is the primary hub for the Hejaz region, effectively serving a population of over 4 million residents and acting as a transit point for data moving to East Africa.
Tax Advantage For Data Centers: The Saudi High-Tech Investment Fund provides significant financial backing for large-scale digital infrastructure deployments. This initiative reduces capital burdens and accelerates the growth of local compute capacity.
Natural Disaster Risk
The overall disaster risk for Jeddah is rated as Low (2.4/10), as of September 2025. The environment is stable, though specific hazards are monitored for infrastructure resilience.
- Risk Label: Low (2.4/10), as of September 2025.
- Epidemic: 5.7.
- Drought: 5.0.
- River Flood: 4.8.
- Coastal Flood: 4.7.
- Earthquake: 1.8.
Other natural hazards such as tsunamis and tropical cyclones are considered minor or not listed for this specific geography. All scores are as of September 2025.
