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Data Centers in Oman

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Oman – Strategic Digital Bridge for the Middle East

Executive Summary

Oman is a compelling data center market for businesses requiring a stable and strategic hub to serve the Middle East, East Africa, and South Asia. Its low natural disaster risk and growing subsea cable connectivity make it an excellent choice for disaster recovery and primary workloads targeting emerging economies. Deploying in Oman reduces latency and improves application performance for users across this vast and growing region.

Oman: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity with developing international fiber routes.
Direct Cloud On-RampsOver 1 – as of September 2025Direct access to AWS, enabling hybrid cloud deployments.
Power CostOMR 0.02–0.03/kWh (as of September 2025)Competitive pricing supports high-density computing needs.
Disaster RiskLow (2.5/10) – as of September 2025Very low exposure to major seismic and weather events.
Tax IncentivesYesGeneral incentives include export credit guarantees and entrepreneur programs.
Sales Tax5% VAT (as of September 2025)Standard Value Added Tax applies to goods and services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market includes over 3 carriers as of September 2025. While still developing, the presence of multiple providers in five data centers ensures options for creating redundant network paths.

Direct Cloud On-Ramps: The country features over 1 direct cloud on-ramp, enabling dedicated access to at least one major cloud region as of September 2025. This includes a local on-ramp for AWS, which allows businesses to build reliable, low-latency hybrid cloud architectures.

Internet Exchange Points (IXPs): Public peering is still maturing in Oman. Most large-scale traffic exchange occurs through private peering arrangements or is routed via major regional hubs like Dubai.

Bare Metal: Bare metal server options are available, giving businesses dedicated physical resources for performance-intensive applications. Global providers like Hivelocity can serve customers with specific requirements in the region.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated between OMR 0.02–0.03/kWh as of September 2025. This competitive pricing structure helps manage the significant operational expenses associated with high-performance computing and dense server deployments.

Power Grid Reliability: The national power grid is reliable, particularly in the commercial centers where data centers are located. The grid is predominantly fueled by natural gas, accounting for approximately 96% of the energy mix, with a growing investment in solar and wind power.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Oman are typically located near Muscat, the nation's capital and economic center. This proximity provides low-latency connectivity for the financial, governmental, logistics, and energy sectors that drive the local economy.

Regional Market Reach: Oman's strategic location on the Arabian Peninsula makes it an ideal digital gateway. It provides effective service delivery to the entire GCC, as well as emerging markets in East Africa and South Asia, including India and Pakistan.

Tax Advantage For Data Centers: Oman provides general business incentives, such as export credit guarantees through Credit Oman, which can reduce the costs of doing business. While there are no data center-specific tax breaks, the straightforward 5% VAT and pro-investment climate create a financially stable operating environment.

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 stability is a primary advantage for critical IT infrastructure.

While the overall risk is minimal, key environmental factors for consideration include:

  • Tsunami: The country's extensive coastline creates a notable risk from seismic events in the Indian Ocean.
  • Coastal Flood: Coastal areas can be susceptible to flooding from sea-level events.
  • Tropical Cyclone: The Arabian Sea can generate cyclones that impact the coastline.
  • Drought: As an arid nation, water scarcity is a persistent environmental stressor.
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