Data Centers in Manama
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Manama – Gateway to the Gulf
Manama is a strategic hub for enterprises targeting the Gulf Cooperation Council (GCC) and the wider Middle East. Its combination of a low-risk environment, improving international connectivity, and a business-friendly climate makes it an ideal location for deploying mission-critical infrastructure. This allows businesses to reduce latency and improve service delivery to a rapidly growing digital market.
Manama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with growing international subsea cable landings. |
| Direct Cloud On-Ramps | Over 2 – as of September 2025 | Direct access to AWS, with other major cloud providers accessible nearby. |
| Power Cost | BHD 0.03 – BHD 0.05/kWh | Competitive rates for the region, supporting cost-effective, high-density deployments. |
| Disaster Risk | Very Low (1.8/10) – as of September 2025 | Very low exposure to seismic, cyclonic, and flooding events. |
| Tax Incentives | No | Focus is on a favorable business environment, not specific tax breaks. |
| Sales Tax | 10% VAT – as of September 2025 | A standard Value Added Tax applies to goods and services. |
Network & Connectivity Ecosystem
Manama is establishing itself as a key interconnection point for the Middle East, leveraging its strategic location and new subsea cable landings. The market offers a solid foundation for network-dependent applications.
Carrier Density & Carrier Neutrality The market features over 5 major carriers, as of September 2025, with multiple carrier-neutral data centers providing access to a broader ecosystem of regional and international providers.
Direct Cloud On-Ramps Manama provides direct connectivity to over 2 cloud on-ramps serving 1 distinct cloud region, as of September 2025. This includes direct access to AWS, enabling hybrid cloud architectures with lower latency and higher security.
Internet Exchange Points (IXPs) The primary local exchange is the Bahrain Internet Exchange (BIX), which facilitates low-latency traffic exchange between local networks and content providers, improving performance for end-users within the country.
Bare Metal Bare metal server options are available from select providers, often through colocation facilities. Global providers like Leaseweb offer services in the broader region, accessible via Manama's strong regional network.
Power Analysis
Bahrain's power infrastructure is modern and designed to support industrial and commercial growth, offering a stable environment for data center operations.
Average Cost Of Power Power costs are competitive for the Gulf region, estimated between BHD 0.03 and BHD 0.05/kWh for industrial users, as of September 2025. This pricing structure benefits data centers with high-density power requirements.
Power Grid Reliability The national power grid is reliable, with modern infrastructure. Data centers in Manama are typically supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Bahrain's business-friendly regulations and central location in the Gulf make it a compelling market for regional headquarters and digital service delivery.
Proximity To Key Business Districts Data centers in Manama are strategically located to serve the city's key commercial hubs, including the Bahrain Financial Harbour and the Diplomatic Area. This proximity is critical for financial services and enterprises requiring minimal latency.
Regional Market Reach Manama serves as an excellent digital hub for the entire Gulf Cooperation Council (GCC). Its location and connectivity provide low-latency access to the large and growing markets of Saudi Arabia, Qatar, and the UAE.
Tax Advantage For Data Centers Bahrain offers a favorable business climate with no corporate income tax for most sectors, creating a straightforward financial environment. While there are no specific tax incentives for data centers, the overall low-tax regime simplifies financial planning and reduces the operational cost base.
Natural Disaster Risk
Bahrain has a Very Low overall risk profile for natural disasters, with an INFORM Risk score of 1.8 out of 10, as of September 2025. This makes it one of the safest locations in the region for building and operating resilient critical infrastructure.
The primary natural hazard to consider is coastal flooding, which scores a 5.3 out of 10, reflecting the country's island geography. Risks from other significant natural events are negligible, including:
- Earthquake (0.1/10)
- Tropical Cyclone (0/10)
- Tsunami (0/10)
- River Flood (0/10)
