Data Centers in Manama
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Manama – Strategic Hub for Gulf Region Connectivity
Manama is a primary interconnection point for businesses targeting the Gulf Cooperation Council (GCC) countries. Its strategic location and developing cloud ecosystem provide a solid platform for enterprises that require low-latency access to Middle Eastern markets, ensuring efficient delivery of digital services and securing critical data assets.
Manama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity with developing international links. |
| Direct Cloud On-Ramps | Over 2 – as of September 2025 | Direct access to AWS provides a strong foundation for hybrid cloud deployments. |
| Power Cost | BHD 0.02-0.04/kWh (est.) | Fossil fuel sources dominate the grid mix. |
| Disaster Risk | Low (INFORM Risk 1.8) – as of September 2025 | The market has a very low exposure to significant natural hazards. |
| Tax Incentives | No | No specific data center incentives are currently promoted. |
| Sales Tax | 10% VAT – as of September 2025 | A standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Manama offers access to over 5 network providers as of September 2025. The presence of four data center operators ensures a competitive and carrier-neutral environment, giving customers choice in how they connect.
Direct Cloud On-Ramps: The market has over 2 cloud on-ramps providing direct, private access to at least one major cloud region as of September 2025. This includes dedicated connections to AWS, which simplifies hybrid architecture and improves performance.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market; most traffic exchange occurs through private peering within data centers or via regional hubs. This arrangement is common in emerging markets before a central public exchange gains critical mass.
Bare Metal: Bare metal server options are available, providing dedicated, high-performance computing for workloads that demand it. Providers like Hivelocity offer services in the region, enabling customized hardware deployments without capital expenditure.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated to be between BHD 0.02 and BHD 0.04/kWh as of September 2025. The country's power mix is almost entirely generated from fossil fuels, which keeps prices relatively stable but offers limited renewable energy options.
Power Grid Reliability: The power infrastructure supporting Manama's commercial districts is well-engineered. Data centers in the area are supplied by reliable utility feeds, with facilities providing necessary redundancy through backup generators and UPS systems to ensure high uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Manama are located near the city's primary financial and diplomatic areas. This proximity serves Bahrain's significant banking, finance, and professional services sectors, which require secure, high-availability infrastructure.
Regional Market Reach: Manama is an effective digital gateway to the wider Gulf region, particularly Saudi Arabia's Eastern Province. Its central location makes it a logical hub for content delivery, cloud services, and disaster recovery for businesses operating across the GCC.
Tax Advantage For Data Centers: The primary financial benefit is the absence of corporate income tax for most businesses, which simplifies operations. Bahrain's established free trade agreements can also facilitate easier equipment importation for data center builds.
Natural Disaster Risk
Bahrain has a very low natural disaster risk profile, with an INFORM Risk score of 1.8 as of September 2025. The island nation's geography insulates it from significant seismic or cyclonic activity.
Key environmental risks are minimal and manageable:
- Coastal Flood: This is the most notable hazard, though its score of 5.3 is moderate and primarily affects specific low-lying areas.
- Earthquake: Risk is negligible (0.1).
- Tropical Cyclone: Risk is negligible (0).
- River Flood & Tsunami: Risk is zero.
