Data Centers in Bahrain
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Bahrain – Hub for Gulf Region Connectivity
Bahrain is a strategic digital hub for businesses targeting the Gulf Cooperation Council (GCC) and the wider Middle East. The nation's well-developed infrastructure and stable environment provide a reliable foundation for deploying critical IT assets, ensuring low-latency access to one of the world's fastest-growing digital economies. This market is ideal for enterprises in finance, logistics, and content delivery that require a secure and connected base of operations.
Bahrain: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional links with multiple subsea cable landings. |
| Direct Cloud On-Ramps | Over 2 — as of September 2025 | Direct connection to AWS reduces latency for hybrid cloud workloads. |
| Power Cost | BHD 0.03-0.05/kWh, as of September 2025 | Primarily fossil fuel-based generation; costs are competitive for the region. |
| Disaster Risk | Low (1.8/10), as of September 2025 | Very low exposure to significant natural disasters, enhancing operational uptime. |
| Tax Incentives | No | Bahrain has no specific data center incentives but maintains a favorable business climate. |
| Sales Tax | 10% VAT, as of September 2025 | Standard Value Added Tax applies to goods and services. |
Network & Connectivity Ecosystem
Bahrain’s connectivity is built on a solid foundation of international subsea cables and a growing number of terrestrial providers. This infrastructure makes it a key traffic exchange point for the region.
Carrier Density & Carrier Neutrality: With over 5 unique network carriers available as of September 2025, Bahrain offers sufficient options for building resilient, multi-homed network architectures in its carrier-neutral facilities.
Direct Cloud On-Ramps: The market features over 2 direct cloud on-ramps, enabling high-performance, private access to 1 cloud region as of September 2025. This includes a local on-ramp for AWS, which significantly improves application performance and security for hybrid cloud deployments.
Internet Exchange Points (IXPs): The primary exchange is the Manama-IX (MN-IX), which facilitates local traffic peering, reducing reliance on international transit and lowering latency for users within Bahrain and the surrounding region.
Bare Metal: Bare metal server options are available, providing dedicated, high-performance computing resources. Providers such as Hivelocity offer solutions for workloads that demand single-tenant hardware for performance or security reasons.
Power Analysis
Bahrain's power infrastructure is reliable and capable of supporting high-density data center deployments.
Average Cost Of Power: Industrial electricity rates typically range from BHD 0.03 to BHD 0.05/kWh as of September 2025. These competitive power costs help manage the significant operational expense of running compute-intensive hardware at scale. The grid is almost entirely powered by fossil fuels.
Power Grid Reliability: The national grid is well-engineered, with modern generation facilities and redundant distribution networks supporting the primary commercial and industrial zones. Data centers in these areas benefit from reliable power delivery, crucial for maintaining service level agreements.
Market Access, Business & Tax Climate
Bahrain's strategic location and business-friendly policies make it an attractive point of presence for accessing regional markets.
Proximity To Key Business Districts: Data centers are located with excellent connectivity to Manama's Seef district, the country's financial heart, and the Khalifa bin Salman Port, a major logistics hub. This proximity serves latency-sensitive financial services and trade operations.
Regional Market Reach: From Bahrain, businesses can effectively serve the entire GCC, including major markets like Saudi Arabia, the UAE, and Qatar, with very low latency. Its central location is a key advantage for regional content delivery and application hosting.
Tax Advantage For Data Centers: While Bahrain does not offer specific tax incentives for data centers, its overall tax regime is highly favorable. The absence of corporate income tax provides a significant financial benefit, allowing companies to invest more capital into growth and operations.
Natural Disaster Risk
Bahrain has a very low natural disaster risk profile, which is a significant advantage for data center uptime and business continuity.
Based on the INFORM Risk Index, Bahrain's overall risk score is Very Low (1.8 out of 10), as of September 2025. This rating reflects minimal exposure to most major natural hazards. Key risks, while minor, include:
- Coastal Flood: The highest individual risk factor, which is expected for an island nation.
- Epidemic: A moderate risk common to all populated regions.
- Earthquake: A very low probability of seismic activity.
Risks from river floods, tsunamis, tropical cyclones, and droughts are negligible, making Bahrain one of the safest locations in the region for critical infrastructure.
