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Data Centers in Oman

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Oman – Strategic Gateway for Intercontinental Data

Executive Summary

Oman is a critical digital crossroads for global enterprises requiring low latency transit between Europe, Asia, and Africa. Its strategic position at the mouth of the Persian Gulf provides a stable environment for high-stakes data sovereignty and regional redundancy. This market is a primary choice for firms looking to bypass traditional congestion while maintaining superior subsea diversity.

Oman: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBHigh subsea diversity and strategic coastal position.
Direct Cloud On-RampsOver 1 – as of September 2025AWS available for private cloud access.
Power CostOMR 0.02 – 0.04/kWh – as of September 2025Competitive pricing from local natural gas resources.
Disaster RiskLow (2.5/10) – as of September 2025Stable environment with specific coastal factors.
Tax IncentivesYesExport credit guarantees and entrepreneur support.
Sales Tax5% VAT – as of September 2025One of the lowest rates in the region.

Network & Connectivity Ecosystem

Oman has matured into a sophisticated infrastructure hub, purpose-built to handle massive transit volumes while maintaining local performance.

Carrier Density & Carrier Neutrality: Carrier count: over 3 as of September 2025. While the market features established players like Omantel and Ooredoo, the presence of carrier-neutral facilities allows for flexible interconnection and competitive transit pricing.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud region as of September 2025. AWS provides the primary entry point for high performance hybrid architectures in the country.

Internet Exchange Points (IXPs): Oman hosts the Oman IX, which facilitates local traffic exchange to keep latency low and reduce reliance on expensive international IP transit.

Bare Metal: Bare metal services are available via global providers such as Latitude.sh, allowing for high performance compute without the overhead of traditional virtualization.

Power Analysis

Oman provides a stable environment for power-hungry deployments, leveraging its domestic natural resources to keep costs predictable.

Average Cost Of Power: Industrial electricity ranges from OMR 0.02 to OMR 0.04/kWh as of September 2025. The energy mix is approximately 96% fossil fuels, primarily natural gas, and 4% renewables. This heavy reliance on domestic gas ensures consistent energy pricing compared to markets dependent on imported fuel.

Power Grid Reliability: The grid in major hubs like Muscat and Barka is well-engineered and redundant. Data centers benefit from multi-substation support, ensuring that critical infrastructure remains online during maintenance cycles.

Market Access, Business & Tax Climate

Oman is an attractive destination for firms looking to reach a wealthy regional market while maintaining a secure operational base.

Proximity To Key Business Districts: Data centers are located near Muscat and the Barka industrial corridor. This provides immediate proximity to the government, finance, and logistics sectors that drive the national economy.

Regional Market Reach: From a single deployment in Oman, businesses can reach over 50 million people in the GCC and millions more across East Africa and the Indian subcontinent with minimal latency.

Tax Advantage For Data Centers: Oman provides financial support through export credit guarantees and credit programs for entrepreneurs. These benefits reduce the financial burden on technology firms establishing a long-term presence.

Natural Disaster Risk

Oman maintains a Low risk profile with an overall score of 2.5/10 as of September 2025. While the country is geologically stable, its long coastline requires attention to specific coastal hazards.

  • Tsunami: 9.0 (Regional/Coastal risk)
  • Coastal Flood: 5.6 (Regional/Coastal risk)
  • Epidemic: 4.9
  • Tropical Cyclone: 3.8
  • Drought: 3.4

Data centers in the region are constructed with these coastal factors in mind, utilizing elevated sites and reinforced shells to protect against rare events. Other natural risks, such as earthquakes, are negligible for this geography.

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