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Data Centers in Muscat

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Muscat – Strategic Hub for Middle East Connectivity

Executive Summary

Muscat is a developing data center market for organizations requiring a strategic foothold on the Arabian Peninsula. Its location offers a stable operating environment and low-latency connectivity for serving Oman and surrounding regions. For businesses targeting markets at the crossroads of Asia, Africa, and the Middle East, Muscat provides a compelling alternative to more congested digital hubs.

Muscat: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity with growing international subsea cable access.
Direct Cloud On-RampsOver 1 — as of September 2025AWS Direct Connect is available locally, enabling private cloud access.
Power CostOMR 0.03 – 0.05/kWhBased on a grid dominated by natural gas generation.
Disaster RiskLow (2.5/10) — as of September 2025Primary risks are related to coastal flooding and tropical cyclones.
Tax IncentivesYesGeneral export credit and entrepreneur programs are available.
Sales Tax5% VAT — as of September 2025Standard Value Added Tax applies to goods and services.

Network & Connectivity Ecosystem

Muscat is an emerging connectivity hub, leveraging its strategic position on multiple subsea cable routes. The market features 5 data centers operated by at least 3 providers, as of September 2025.

Carrier Density & Carrier Neutrality The market provides access to a focused set of national and regional carriers. Carrier-neutral facilities offer the primary access points for interconnection, allowing businesses to choose the best-fit provider for their performance and cost needs.

Direct Cloud On-Ramps One major public cloud provider has a direct on-ramp in Muscat, enabling low-latency, private connections to a global cloud region, as of September 2025.

  • AWS

For other cloud providers, access is typically established via private network extensions or transit through regional hubs like Dubai.

Internet Exchange Points (IXPs) The presence of a local internet exchange point improves traffic routing within Oman, reducing latency for domestic users by keeping local traffic local. Most large-scale international peering is handled privately or through major exchanges in the UAE.

Bare Metal Bare metal server options are available in the region, providing dedicated compute resources for performance-intensive workloads. Global providers like phoenixNAP offer solutions that can serve customers in the Omani market.

Power Analysis

Average Cost Of Power Industrial power costs in Muscat are estimated to be between OMR 0.03 – 0.05/kWh, as of September 2025. This competitive pricing can significantly reduce operational expenditures for high-density compute deployments. Oman's power generation is approximately 96% fossil fuels (primarily natural gas) and 4% renewables.

Power Grid Reliability The power grid serving Muscat's primary commercial and industrial areas is reliable and engineered to support critical infrastructure. Data centers in the market are supplied by modern substations, with facilities offering multiple levels of redundancy to ensure consistent uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Muscat are located with access to the capital's central business district, major industrial estates, and international ports. This proximity is ideal for enterprises in finance, logistics, and government that require fast, reliable access to their digital infrastructure.

Regional Market Reach From Muscat, businesses can effectively serve the entire population of Oman and extend their reach into neighboring markets in the southern Arabian Peninsula. The city's coastal location also makes it a key landing point for subsea cables, positioning it as a future gateway for traffic between Europe, Asia, and East Africa.

Tax Advantage For Data Centers Oman provides general business incentives like export credit guarantees that can lower the financial risk for international companies deploying capital. While not specific to data centers, these programs enhance the overall investment climate for technology infrastructure projects.

Natural Disaster Risk

Oman has a Low overall natural disaster risk profile, with a score of 2.5 out of 10, as of September 2025. The country's primary environmental hazards are coastal and weather-related, which are manageable through proper site selection and facility engineering.

Key risks include:

  • Tsunami: High risk score, reflecting the country's extensive coastline.
  • Coastal Flood: Elevated risk in low-lying coastal areas.
  • Tropical Cyclone: Moderate risk of storms originating from the Arabian Sea.
  • Drought: A persistent environmental consideration for the region.
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