Data Centers in Manama
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Manama – Hub for Gulf Cloud Connectivity
Manama is the primary Middle Eastern connectivity hub for enterprises requiring low-latency access to the Arabian Peninsula and direct cloud integration. Its strategic location and established AWS region make it the leading choice for deploying digital infrastructure to serve the Gulf Cooperation Council (GCC) markets. This ensures high-speed application delivery and secure data management for the region's rapidly growing digital economy.
Manama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with some dependence on international subsea cable routes. |
| Direct Cloud On-Ramps | Over 2 – as of September 2025 | Direct access to AWS, reducing latency for cloud workloads in the region. |
| Power Cost | BHD 0.02–0.03/kWh (est.) | Fossil fuel-based generation keeps industrial power costs relatively low and stable. |
| Disaster Risk | Low (1.8/10) – as of September 2025 | Exceptionally low risk profile for all major natural disasters. |
| Tax Incentives | No | Bahrain does not offer specific tax incentives for data center development. |
| Sales Tax | 10% VAT – as of September 2025 | Standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Manama has a focused but growing ecosystem with over 5 unique network providers available in local data centers as of September 2025. The market offers access to multiple carrier-neutral facilities, providing choice and resiliency for network deployments.
Direct Cloud On-Ramps: The market features over 2 direct cloud on-ramps, providing dedicated network connections to the local AWS cloud region. This enables enterprises to build reliable, low-latency hybrid cloud architectures.
Internet Exchange Points (IXPs): While public peering is still developing, Manama is home to the Manama IX (MN-IX). This exchange facilitates local traffic exchange, reducing reliance on international transit and improving performance for Bahraini end-users.
Bare Metal: Bare metal cloud solutions are available from global providers. These services offer the performance and security of dedicated servers combined with the agility of cloud provisioning.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between BHD 0.02 and BHD 0.03 per kWh as of September 2025. This competitive pricing structure helps manage the significant operational expense of high-density computing. The grid is almost entirely powered by fossil fuels (~99.75%), ensuring predictable energy costs.
Power Grid Reliability: The electrical grid supporting Manama's commercial districts is well-engineered and stable. Data centers in the area are supplied by redundant power feeds from multiple substations, supporting high uptime requirements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Manama are strategically located to serve the Bahrain Financial Harbour and the Diplomatic Area. This proximity provides financial services, government, and multinational corporations with low-latency access for critical applications.
Regional Market Reach: Bahrain's central location in the Persian Gulf makes it an ideal digital hub for serving the entire GCC, including key markets in Saudi Arabia, Kuwait, Qatar, and the UAE. Subsea cable connectivity further extends its reach.
Tax Advantage For Data Centers: Bahrain currently offers no specific tax incentives for data center operators or tenants. The primary financial advantage stems from a favorable operating cost environment rather than direct government tax relief.
Natural Disaster Risk
Bahrain has a very low natural disaster risk profile, with an INFORM Risk score of 1.8 out of 10 as of September 2025. The island nation is not exposed to significant seismic, cyclonic, or flooding events.
Key risk factors are limited to:
- Coastal Flood: The highest single risk factor, though historical impact is moderate.
- Epidemic: A measurable risk common to all international business hubs.
- Earthquake: Extremely low risk, with minimal seismic activity in the region.
- Drought: A manageable risk due to the country's desalination infrastructure.
