Data Centers in Jeddah

Jeddah – Strategic Gateway to the Middle East

Jeddah is a primary digital hub for Saudi Arabia and a strategic location for businesses targeting growth across the Middle East and North Africa. Its coastal position on the Red Sea makes it a critical landing point for subsea cables, offering low-latency connectivity between Europe, Asia, and Africa. Deploying infrastructure here connects businesses directly to one of the G20's fastest-growing economies.

Jeddah: At A Glance

Network & Connectivity Ecosystem

Jeddah's location on the Red Sea coast makes it a vital interconnection point. It serves as a major landing station for subsea cables connecting Europe and Asia.

Carrier Density & Carrier Neutrality: The market features over 2 carriers, with multiple data centers offering carrier-neutral environments as of September 2025. This provides essential redundancy and competitive pricing for transit and transport.

Direct Cloud On-Ramps: Over 1 direct cloud on-ramp is available in the market, enabling dedicated access to 1 cloud region as of September 2025. Oracle Cloud offers direct connectivity, allowing enterprises to build reliable hybrid cloud architectures.

Internet Exchange Points (IXPs): The primary exchange point is the Saudi Arabian Internet Exchange (SAIX). Peering at SAIX reduces latency for local traffic and improves network performance across the Kingdom.

Bare Metal: Bare metal cloud services are available from providers in the region. Global suppliers like Hivelocity can provide dedicated server solutions to meet performance and security needs.

Power Analysis

The power grid in Jeddah is built to support significant industrial and commercial energy demands, benefiting from substantial government investment in national infrastructure.

Average Cost Of Power: Industrial electricity rates are estimated between SAR 0.45 and SAR 0.68/kWh as of September 2025. The country's energy mix is dominated by fossil fuels, ensuring a consistent and affordable power supply, which is advantageous for high-density computing.

Power Grid Reliability: The electrical grid serving Jeddah's main commercial zones is well-engineered, with significant investment in creating a reliable power supply. Data centers in the area are supported by redundant connections to the grid to ensure high levels of uptime.

Market Access, Business & Tax Climate

Jeddah is Saudi Arabia's primary commercial center and a key logistics hub for the region.

Proximity To Key Business Districts: Data centers in Jeddah provide low-latency access to the city's central business district, the Jeddah Islamic Port, and King Abdullah Economic City. This proximity is critical for financial services, logistics, and trade industries.

Regional Market Reach: With its strategic port and airport, Jeddah serves as an effective digital gateway to over 400 million people across the Middle East and North Africa. It is an excellent base for serving customers throughout the Gulf Cooperation Council (GCC) states.

Tax Advantage For Data Centers: The government actively encourages high-tech investment through specialized funding programs. These initiatives help lower the barrier to entry and reduce capital expenditures for technology-focused companies establishing a presence 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 the general threat level is minimal, businesses should be aware of specific environmental factors.

The most significant natural hazards for the region include:

• Drought
• River Flood
• Coastal Flood
• Earthquake