Data Centers in Amwaj Islands
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Amwaj Islands – Strategic Digital Hub for the Gulf
Amwaj Islands, Bahrain, is an essential market for enterprises targeting low-latency connectivity to the financial and commercial centers of the Arabian Gulf. Its stable, low-risk environment provides a reliable foundation for digital infrastructure supporting regional operations. This market is ideal for businesses that require a secure base to serve customers in Bahrain and the Eastern Province of Saudi Arabia.
Amwaj Islands: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with potential for growth in international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is available via dedicated connections to regional hubs like Dubai. |
| Power Cost | BHD 0.03–0.05/kWh (est.) | Fossil fuels dominate the grid, keeping industrial power costs competitive. |
| Disaster Risk | Low (1.8/10) – as of September 2025 | Very low exposure to most natural hazards, ensuring high operational uptime. |
| Tax Incentives | No | No specific data center incentives exist under current trade agreements. |
| Sales Tax | 10% VAT – as of September 2025 | Standard Value Added Tax applies to goods and services. |
Network & Connectivity Ecosystem
Digital infrastructure in Amwaj Islands benefits from Bahrain's strategic position in the Gulf, supported by significant investment in subsea cable systems landing in the country.
Carrier Density & Carrier Neutrality The market provides access to a growing number of regional and international carriers, with over 15 providers active in Bahrain as of September 2025. Carrier-neutral facilities offer diverse connectivity options essential for building resilient network architectures.
Direct Cloud On-Ramps There are no public cloud on-ramps located directly in Amwaj Islands as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to major hubs in the UAE or other regional locations.
Internet Exchange Points (IXPs) The Bahrain Internet Exchange (BIX) is the primary IXP for the nation, facilitating local traffic exchange and reducing latency for domestic users. Most international peering occurs privately or is routed through larger regional exchanges.
Bare Metal Bare metal server solutions are available from providers operating within the Bahraini market. Companies like Hivelocity offer dedicated server infrastructure for workloads requiring maximum performance and security.
Power Analysis
Bahrain's power infrastructure is modern and reliable, designed to support its critical financial and industrial sectors.
Average Cost Of Power The estimated cost for industrial power ranges from BHD 0.03 to BHD 0.05 per kWh as of September 2025. This competitive pricing helps manage the significant operational expenses associated with high-density compute.
Power Grid Reliability The national grid is well-engineered, with significant redundancy and multi-substation support available in key commercial areas like Amwaj Islands. The grid's stability is a core advantage for mission-critical data center operations requiring constant uptime.
Market Access, Business & Tax Climate
Bahrain offers a favorable business environment with excellent access to key regional markets.
Proximity To Key Business Districts Data centers in or near Amwaj Islands are strategically located to serve Bahrain's Financial Harbour and the capital city of Manama. This proximity provides low-latency connectivity for the country's dense concentration of financial services, banking, and corporate headquarters.
Regional Market Reach The market is uniquely positioned to serve the massive economy of eastern Saudi Arabia, including the Dammam and Khobar metropolitan areas, via the King Fahd Causeway. This makes it a primary hub for disaster recovery and content delivery for the broader Gulf region.
Tax Advantage For Data Centers While there are no specific tax incentives for data center development, Bahrain offers a favorable broader tax regime. The absence of corporate income tax creates a compelling financial environment for foreign investment and simplifies business operations.
Natural Disaster Risk
Bahrain's geography makes it one of the most physically secure locations for data centers in the Middle East. The country's overall natural disaster risk is very low, with an INFORM Risk score of 1.8 out of 10 as of September 2025.
Key risk factors include:
- Coastal Flooding: The primary natural hazard, reflecting the island nation's low-lying geography. Modern infrastructure in Amwaj Islands is built to mitigate this risk.
- Epidemic: This factor scores moderately, reflecting general regional health risks.
- Earthquake: Seismic risk is negligible.
- Tropical Cyclone: The Arabian Gulf's geography provides significant protection from major cyclonic storms.
