Data Centers in Manama
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Manama – The Low Latency Bridge to the Gulf
Executive Summary
Manama is the premier low-latency gateway for enterprises targeting Saudi Arabia and the broader Gulf Cooperation Council (GCC) markets. This location offers a stable, secure environment for high-stakes digital infrastructure, serving as a critical landing point for major international subsea cables. It is the logical choice for financial services and technology firms that require rapid regional data distribution without the complexity of larger neighboring hubs.
Manama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional hub with strong subsea access. |
| Direct Cloud On-Ramps | Over 2 – as of December 2025 | Direct local access to AWS infrastructure. |
| Power Cost | $0.05–$0.08/kWh – as of December 2025 | Highly competitive rates for the Gulf region. |
| Disaster Risk | Low (1.8/10) – as of December 2025 | Very stable site for physical hardware security. |
| Tax Incentives | No – as of December 2025 | Standard trade agreements apply for data services. |
| Sales Tax | 10% VAT – as of December 2025 | Applied to standard commercial service contracts. |
Network & Connectivity Ecosystem
The connectivity landscape in Manama is purpose-built to facilitate high-speed traffic between Europe, Asia, and the Middle East.
Carrier Density & Carrier Neutrality: Carrier count: over 5. The market provides a focused selection of regional incumbents and international carriers as of December 2025. This density ensures diverse routing options for critical applications requiring high uptime.
Direct Cloud On-Ramps: Over 2, enabling access to 1 cloud regions as of December 2025. Direct connectivity is available for AWS, allowing for low-latency hybrid cloud architectures and secure data transfers.
Internet Exchange Points (IXPs): The Manama Internet Exchange (MN-IX) functions as the primary local hub, keeping regional traffic local to improve performance and reduce transit costs.
Bare Metal: High-performance compute options are available through global providers like Latitude.sh and phoenixNAP, supporting rapid deployment of heavy workloads as of December 2025.
Power Analysis
Bahrain provides a reliable energy environment with industrial rates that are among the most competitive in the Middle East.
Average Cost Of Power: Industrial electricity prices range between $0.05–$0.08/kWh as of December 2025. These rates significantly lower the total cost of ownership for colocation and large-scale deployments compared to most European or North American markets.
Power Grid Reliability: The grid is well-engineered with redundant multi-substation support to handle the demands of modern data center corridors. Reliability is prioritized through heavy investment in local natural gas generation, ensuring a consistent energy supply for high-density compute.
Market Access, Business & Tax Climate
Manama is a mature commercial center with a regulatory framework that favors international business and digital growth.
Proximity To Key Business Districts: Data centers are centrally located near the Seef District and Bahrain Financial Harbour. This proximity is vital for fintech and financial services firms that require near-instant connectivity to their primary trading and banking systems.
Regional Market Reach: Manama serves as the most efficient terrestrial and subsea bridge into the Saudi Arabian market, reaching major population centers with the lowest possible latency.
Tax Advantage For Data Centers: Bahrain operates without a standard corporate income tax for most business entities, allowing companies to maximize their operational budget. This fiscal structure helps businesses reinvest capital into hardware and network expansion instead of tax liabilities.
Natural Disaster Risk
Manama is one of the more secure global locations for digital assets, characterized by a Low (1.8/10) risk profile as of December 2025.
Overall Risk Label: Low (1.8/10)
Primary Hazards:
- Coastal Flood (5.3): Managed through specific site selection and elevated facility design.
- Epidemic (4.1): Addressed via standard regional health and safety protocols.
- Earthquake (0.1): Minimal seismic activity makes this a top-tier choice for long-term residency.
- River Flood (0): Non-existent risk due to local geography.
- Tsunami (0): No material threat to the primary data center corridors.
Other natural hazards are minor or not listed for this region as of December 2025.
