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Data Centers in Muscat

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Muscat – Strategic Digital Gateway to the Middle East

Muscat is emerging as a key digital hub for businesses targeting the Arabian Peninsula, East Africa, and South Asia. Its strategic coastal location, combined with investments in subsea cable connectivity, makes it an excellent choice for deploying infrastructure that requires low latency to these high-growth regions. The market offers a stable and secure alternative to more congested digital corridors.

Muscat: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGrowing international connectivity via major subsea cable landings.
Direct Cloud On-RampsOver 1 – as of September 2025Direct access improves performance and reduces networking costs.
Power CostOMR 0.04–0.06/kWh (est.)Fossil fuel-based grid with a focus on solar expansion.
Disaster RiskLow (2.5/10) – as of September 2025Low overall risk profile, with specific coastal exposures.
Tax IncentivesYesGeneral incentives include export credit guarantees and entrepreneur programs.
Sales Tax5% VAT – as of September 2025Standard national value-added tax rate.

Network & Connectivity Ecosystem

Muscat's connectivity is anchored by its strategic position on several major subsea cable routes connecting Asia, Africa, and Europe. This provides a resilient foundation for digital services.

Carrier Density & Carrier Neutrality: The market includes over 3 carriers, as of September 2025, offering a mix of regional and local network services. Carrier-neutral facilities provide essential options for creating redundant, high-performance network architectures.

Direct Cloud On-Ramps: The market features over 1 direct cloud on-ramp, enabling dedicated access to 1 cloud regions, as of September 2025. This includes private connections to AWS. For other providers, connectivity is typically established through private network extensions to major hubs like Dubai.

Internet Exchange Points (IXPs): While public peering options are still developing, most interconnection occurs through private peering within carrier-neutral data centers. This model facilitates direct traffic exchange between networks, improving speed and reducing costs.

Bare Metal: Bare metal cloud solutions are available from select providers, offering dedicated compute resources for performance-intensive workloads. Options from providers like Hivelocity can be deployed to serve local and regional demand.

Power Analysis

Oman's power infrastructure is reliable and expanding to meet growing industrial and digital demand.

Average Cost Of Power: Industrial power costs are estimated between OMR 0.04–0.06/kWh, as of September 2025. The country's power grid is approximately 96% fossil fuel-based, primarily using natural gas, which ensures stable pricing and supply.

Power Grid Reliability: The electrical grid in the Muscat metropolitan area is well-engineered and provides reliable power to its data center facilities. Major data centers are supported by redundant power feeds and on-site generation to ensure consistent uptime.

Market Access, Business & Tax Climate

Oman offers a business-friendly environment with a clear vision for digital transformation, making it an attractive location for foreign investment.

Proximity To Key Business Districts: Data centers in Muscat are located near the city's primary commercial and governmental districts. This proximity supports low-latency services for finance, government, and enterprise customers concentrated in the capital.

Regional Market Reach: Muscat is strategically positioned to serve as a digital gateway to over two billion people across the Gulf Cooperation Council (GCC), the Indian subcontinent, and East Africa. Its subsea cable links are critical for content delivery and cloud services aimed at these markets.

Tax Advantage For Data Centers: Oman provides general economic incentives that benefit data center operators and tenants. These include export credit guarantees through Credit Oman and various programs designed to support entrepreneurship and attract foreign capital.

Natural Disaster Risk

Oman has a low overall risk profile for natural disasters, with specific geographic considerations for operators.

Based on the INFORM Risk Index, Oman has a Low risk score of 2.5 out of 10, as of September 2025. While the overall threat is minimal, key natural hazards to consider for infrastructure planning include:

  • Tsunami
  • Coastal Flood
  • Tropical Cyclone
  • Drought

Earthquake and river flood risks are rated as very low. The primary risks are coastal and meteorological, making site selection and facility engineering important considerations.

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