Data Centers in Jeddah
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Jeddah, Saudi Arabia – Strategic Red Sea Digital Hub
Jeddah is the primary interconnection and colocation hub for Saudi Arabia, serving as a critical digital gateway between Europe, Asia, and Africa. For businesses targeting the rapidly expanding markets of the Middle East, Jeddah offers a strategic location to deploy infrastructure, reduce latency, and improve application performance for millions of end-users.
Jeddah, Saudi Arabia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with diverse subsea cable landings. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Direct access is available to Oracle Cloud. |
| Power Cost | SAR 0.45-0.68/kWh | Power is subsidized, making it affordable for high-density deployments. |
| Disaster Risk | Low (2.4/10) – as of September 2025 | Overall risk profile is low, with minimal exposure to major natural hazards. |
| Tax Incentives | Yes | Includes a $200M investment fund supporting high-tech projects. |
| Sales Tax | 15% VAT – as of September 2025 | Standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Jeddah's position on the Red Sea coast makes it a vital landing point for numerous subsea cables connecting continents. This creates a dense and diverse connectivity ecosystem crucial for any digital business.
Carrier Density & Carrier Neutrality With 2 data center providers operating 2 facilities, the market offers a solid foundation for network redundancy, as of September 2025. Carrier-neutral facilities provide access to a competitive blend of local and international carriers, ensuring optimal routing and pricing.
Direct Cloud On-Ramps The market features 1 cloud on-ramp, enabling dedicated, low-latency access to 1 cloud region, as of September 2025. Oracle Cloud offers direct connections, allowing enterprises to build reliable hybrid cloud architectures.
Internet Exchange Points (IXPs) The primary internet exchange in the city is Saudi Arabia Internet Exchange (SAIX). Peering through SAIX allows for efficient local traffic exchange, reducing reliance on international transit and lowering latency for users within the Kingdom.
Bare Metal Bare metal server options are available, providing dedicated, high-performance computing for demanding workloads. Providers such as Hivelocity offer solutions for businesses that require the performance and security of single-tenant hardware.
Power Analysis
The power infrastructure in Jeddah is built to support the demands of a growing industrial and commercial hub.
Average Cost Of Power Industrial electricity rates are competitive, estimated between SAR 0.45–0.68/kWh, as of September 2025. This cost structure is advantageous for energy-intensive operations like data centers. The grid is almost entirely powered by fossil fuels.
Power Grid Reliability The power grid serving Jeddah's main data center zones is well-engineered, with significant investment in redundancy to support critical facilities. Access to multiple substations is common among major colocation providers, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Jeddah is a major commercial center and a key component of Saudi Arabia's Vision 2030, which aims to diversify the economy and attract foreign investment.
Proximity To Key Business Districts Data centers in Jeddah are strategically located to serve the city's central business district and major industrial zones. This proximity provides low-latency connectivity for the region's concentration of finance, logistics, and commercial enterprises.
Regional Market Reach From Jeddah, organizations can effectively serve the entire western region of Saudi Arabia, including the holy cities of Mecca and Medina. Its strategic location also makes it an ideal hub for reaching markets across North and East Africa and the wider Middle East.
Tax Advantage For Data Centers Saudi Arabia offers significant incentives to attract technology investment. The availability of government-backed investment funds helps reduce the initial capital expenditure for high-tech projects, making it a financially attractive location for digital infrastructure deployment.
Natural Disaster Risk
Jeddah has a low natural disaster risk profile, with an overall INFORM Risk score of 2.4 out of 10, as of September 2025. This minimizes the threat of environmental disruptions to data center operations.
The most notable environmental risks include:
- Drought: 5.0/10
- River Flood: 4.8/10
- Coastal Flood: 4.7/10
- Earthquake: 1.8/10
Risks from tsunamis and tropical cyclones are negligible. The city's primary challenges are related to water scarcity and potential flooding from rare storm events, which modern data center designs mitigate.
