Data Centers in Fujairah

Fujairah – Strategic Subsea Cable Hub

Executive Summary

Fujairah is a critical global hub for subsea cable systems, making it an essential market for international carriers, content delivery networks, and financial services firms. Its unique geographic position provides a secure, low-latency gateway connecting the Middle East, Asia, and Europe. Deploying infrastructure here directly impacts network performance and resilience for reaching billions of end-users.

Fujairah: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features access to over 7 providers, as of September 2025. The ecosystem is dominated by major international carriers that land their subsea cable systems here, making it a point of significant global interconnection.

Direct Cloud On-Ramps: Fujairah provides direct, low-latency access to major cloud providers, with 1 dedicated on-ramp facility serving 3 distinct cloud regions, as of September 2025. Available providers include:

• AWS
• Microsoft Azure

Internet Exchange Points (IXPs): While direct public peering within Fujairah is limited, most interconnection occurs through private peering within carrier-neutral data centers. The primary regional exchange, UAE-IX in nearby Dubai, is readily accessible via dedicated circuits.

Bare Metal: Bare metal server options are available, often provisioned by providers focused on high-performance computing and global network delivery. Options from providers like Hivelocity and phoenixNAP can be deployed to leverage the area's strategic connectivity.

Power Analysis

Average Cost Of Power: Power costs in Fujairah are exceptionally low, averaging approximately USD 0.03/kWh, as of September 2025. This highly competitive rate makes the market financially attractive for power-intensive workloads like AI training and video rendering.

Power Grid Reliability: The electrical grid supporting Fujairah's data center corridor is well-engineered and stable, reflecting the UAE's investment in critical infrastructure. Facilities are typically supplied by redundant power feeds from separate substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Fujairah are strategically located adjacent to the landing stations for the world's most important submarine cable systems. This proximity is critical for telecommunications providers, global content companies, and financial networks that require the lowest possible latency.

Regional Market Reach: Fujairah serves as a digital crossroads, offering efficient network paths to over 3 billion people across the Middle East, East Africa, India, and parts of Asia. Its location outside the Strait of Hormuz is often seen as a key geopolitical advantage for network stability.

Tax Advantage For Data Centers: The primary financial benefit is the United Arab Emirates' low 5% Value Added Tax (VAT). This straightforward tax environment, combined with competitive operational costs, creates a compelling total cost of ownership.

Natural Disaster Risk

Fujairah has a very low natural disaster risk profile, with an INFORM Risk score of 2.1, as of September 2025. This stability is a key advantage for mission-critical infrastructure requiring maximum uptime.

While the overall threat is minimal, the highest-scoring potential hazards are primarily marine-based, reflecting the city's coastal location. Key risks include:

• Coastal Flood: The most significant rated natural hazard.
• Tsunami: A low-probability but noted risk for any coastal area in the region.
• Drought: A regional environmental consideration.
• Epidemic: A general risk factor related to population health.

Risks from earthquakes and tropical cyclones are negligible.