Data Centers in Fujairah

Fujairah – Strategic Hub for Subsea Connectivity

Fujairah is a critical digital gateway connecting the Middle East, Asia, and Europe. Its unique position as the landing point for major subsea cables makes it the premier choice for organizations that require minimal latency and maximum uptime for serving vast, high-growth regions. This market provides an exceptionally resilient and cost-effective environment for deploying compute and storage infrastructure.

Fujairah: At A Glance

Network & Connectivity Ecosystem

Fujairah's primary value is its dense and diverse network ecosystem, anchored by its status as a global subsea cable hub.

Carrier Density & Carrier Neutrality: The market features over 7 network providers, as of September 2025. Colocation facilities are carrier-neutral, offering diverse options for interconnection and transit.

Direct Cloud On-Ramps: Direct cloud access is available from major providers, enabling hybrid architectures with 3 cloud regions. On-ramp providers include:

• AWS
• Azure

Internet Exchange Points (IXPs): While most large-scale peering is handled privately within data centers, the UAE-IX in nearby Dubai serves as the primary regional exchange point, improving traffic routing and reducing latency across the Middle East.

Bare Metal: Bare metal server options are available for workloads demanding dedicated, high-performance compute. Providers such as phoenixNAP offer services in the region, allowing businesses to deploy powerful infrastructure without capital expenditure.

Power Analysis

The United Arab Emirates provides highly reliable and competitively priced power, which is a significant advantage for data center operations.

Average Cost Of Power: Industrial electricity costs are approximately $0.03/kWh, as of September 2025. This extremely low price point directly reduces the total cost of ownership for high-density compute deployments. The grid is primarily powered by natural gas, with a growing mix of nuclear and solar energy.

Power Grid Reliability: The electrical grid supporting Fujairah is modern and well-engineered. Data centers in the area are fed by redundant power infrastructure, ensuring high levels of uptime required for mission-critical applications.

Market Access, Business & Tax Climate

Fujairah offers a stable and business-friendly environment with excellent access to regional markets.

Proximity To Key Business Districts: The city is a critical infrastructure hub, home to the Fujairah Free Zone and a major global port. Its data centers are central to the subsea cable landing stations that carry a significant portion of the world's internet traffic.

Regional Market Reach: From Fujairah, organizations can effectively serve the entire Arabian Peninsula, East Africa, and key markets in South Asia with very low latency. This makes it an ideal disaster recovery site or primary hosting location for regional operations.

Tax Advantage For Data Centers: The UAE's primary financial benefit is its simple and low-tax regime, with a 5% VAT and no federal corporate income tax for most businesses. This creates a predictable and financially attractive environment for long-term investments in digital infrastructure.

Natural Disaster Risk

The United Arab Emirates has a very low risk profile for natural disasters, enhancing its appeal for mission-critical facilities.

Based on the INFORM Risk Index, the region has a "Very Low" risk score of 2.1 out of 10, as of September 2025. While the overall threat is minimal, the highest individual risk factors are associated with its coastal location.

Key natural hazards to note:

• Coastal Flood: The highest individual risk factor given its location on the Gulf of Oman.
• Tsunami: A recognized, though low-probability, risk for coastal infrastructure.
• Drought: A persistent environmental concern for the arid region.
• Epidemic: A general risk factor for any population center.