Data Centers in Al Hudaydah
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Al Hudaydah – Strategic Red Sea Access Point
Executive Summary
Al Hudaydah serves a highly specialized niche for organizations in telecommunications, logistics, and government that require a physical infrastructure footprint on Yemen's Red Sea coast. Despite immense operational challenges, its strategic location near major subsea cable landing points presents a long-term opportunity for routing traffic between Africa, the Middle East, and Asia. This market is exclusively for entities with extreme risk tolerance and a strategic, long-term regional focus.
Al Hudaydah: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Basic international links exist, but with minimal terrestrial redundancy. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extensions to regional hubs like Djibouti or Jeddah. |
| Power Cost | ﷼150.00 - ﷼200.00/kWh | Extremely high costs reflect a near-total reliance on private power generation. |
| Disaster Risk | High (8.2/10) | Very high overall risk driven by human factors and natural hazards. |
| Tax Incentives | Yes | Includes exemptions from import tariffs and VAT on production equipment. |
| Sales Tax | Varies | VAT exemptions may be available for specific data center investments as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has extremely limited carrier density, with fewer than 5 providers active as of September 2025. The single operational data center provides basic connectivity, but the ecosystem lacks the diversity and neutrality found in established hubs.
Direct Cloud On-Ramps There are no direct cloud on-ramps in Yemen. Connecting to major cloud providers like AWS, Google Cloud, or Microsoft Azure requires establishing private network links to regional hubs such as Djibouti or Jeddah, which serve as the nearest access points.
Internet Exchange Points (IXPs) There are no public Internet Exchange Points in Al Hudaydah. Network peering is conducted privately between service providers or routed through international upstreams, adding latency for local traffic.
Bare Metal Bare metal services are not available locally. Organizations requiring dedicated servers must source them from providers in more developed regional markets and manage connectivity back to their Yemen operations.
Power Analysis
Average Cost Of Power The estimated cost for industrial power is between ﷼150.00 and ﷼200.00/kWh as of September 2025. These exceptionally high rates are due to the national grid's unreliability, forcing data center operators to depend almost entirely on costly on-site diesel power generation. The power mix is nearly 100% fossil fuels.
Power Grid Reliability The public power grid is extremely unreliable and insufficient for supporting critical infrastructure. Any data center deployment requires fully redundant, independent power generation systems and substantial on-site fuel storage to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data center infrastructure in Al Hudaydah is strategically positioned to serve the Port of Al Hudaydah, the primary logistical and shipping hub for much of the country. This proximity is vital for port authorities, import/export businesses, and telecommunication providers landing subsea cables.
Regional Market Reach From its position on the Red Sea, Al Hudaydah can theoretically serve as a digital gateway for Yemen's coastal populations and act as a transit point for data traffic on one of the world's busiest maritime routes. However, internal conflict and poor infrastructure currently limit this potential.
Tax Advantage For Data Centers The Yemeni government provides significant tax incentives to encourage investment in digital infrastructure. These benefits include exemptions from import tariffs and Value Added Tax (VAT) on essential production equipment and data center services, reducing the initial capital expenditure for new projects.
Natural Disaster Risk
Al Hudaydah is in a region with a Very High overall risk score of 8.2 out of 10 as of September 2025. While the risk profile is heavily influenced by human conflict and institutional fragility, the area also faces considerable natural hazards.
The most significant natural threats include:
- River Flood: High probability of flooding from seasonal rivers.
- Coastal Flood: The city's low-lying coastal position makes it vulnerable to storm surges.
- Drought: The region is susceptible to prolonged periods of severe drought.
- Tsunami: Poses a threat due to the city's location on the Red Sea.
- Tropical Cyclone: Cyclonic storms can impact the coastal area, bringing high winds and heavy rain.
