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Data Centers in Oman

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Oman – Strategic Hub for Middle East Connectivity

Executive Summary

Oman is a strategic choice for enterprises seeking a resilient digital foothold in the Middle East. Its location offers low-latency connectivity to markets across Asia, Africa, and Europe, making it a reliable hub for regional service delivery and disaster recovery.

Oman: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional links, developing as a global hub.
Direct Cloud On-RampsOver 1 — as of September 2025AWS Direct Connect is available locally.
Power CostOMR 0.04–0.06/kWh, as of September 2025Reliable grid; pricing is competitive for the region.
Disaster RiskLow (2.5/10), as of September 2025Primary risks are coastal; seismic activity is very low.
Tax IncentivesYesGeneral export and credit programs are available.
Sales Tax5% VAT, as of September 2025Standard Value Added Tax applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Oman's connectivity market is growing, with several key national and international carriers present in its 5 data centers as of September 2025. Carrier-neutral facilities provide essential options for interconnection and building resilient network architectures.

Direct Cloud On-Ramps As of September 2025, Oman provides direct access to one major cloud provider through a local on-ramp. This enables low-latency, private connections to AWS.

Internet Exchange Points (IXPs) The primary exchange point is the Oman Neutral Internet Exchange (OMN-IX), which facilitates local traffic peering and improves network performance within the country.

Bare Metal Bare metal compute solutions are available from providers operating within the region. Options can be sourced from global specialists like Hivelocity or Latitude.sh for dedicated infrastructure needs.

Power Analysis

Average Cost Of Power Industrial electricity rates in Oman are estimated between OMR 0.04–0.06/kWh as of September 2025. This pricing is competitive within the Gulf region, helping to manage operational expenditures for power-intensive deployments. The grid is predominantly powered by natural gas, with a growing share from solar and wind projects.

Power Grid Reliability The national power grid is modern and reliable, particularly in key commercial areas like Muscat. Data centers are supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are primarily located in and around Muscat, the capital and economic center. This proximity serves the government, financial services, and telecommunications sectors concentrated in the city.

Regional Market Reach Oman's strategic coastal location provides a low-latency gateway to over two billion people across the Middle East, East Africa, and South Asia. Its numerous subsea cable landing stations are a key asset for reaching these high-growth markets.

Tax Advantage For Data Centers The government offers general business incentives, including export credit guarantees through Credit Oman and programs for entrepreneurs. While there are no specific tax breaks for data centers, the overall business climate is favorable for investment.

Natural Disaster Risk

Oman has a Low overall natural disaster risk profile, with an INFORM Risk score of 2.5 out of 10 as of September 2025. This low score reflects strong coping capacity and low vulnerability, which offset the exposure to certain environmental hazards.

Key individual natural hazard risks include:

  • Tsunami: The most significant single hazard, given the country's extensive coastline on the Arabian Sea.
  • Coastal Flood: A notable risk for low-lying coastal areas.
  • Tropical Cyclone: The region is susceptible to cyclones forming in the Arabian Sea.
  • Drought: A persistent environmental challenge across the Arabian Peninsula.
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