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Data Centers in Muscat

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Muscat – Strategic Connectivity Hub for Global Enterprise

Executive Summary

Muscat serves as a critical landing point for international subsea cables, making it a premier location for organizations requiring low-latency links between Europe, Asia, and Africa. Its combination of aggressive power rates and a stable business environment makes it a high-performance choice for regional data deployments.

Muscat: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong subsea presence and growing regional peering.
Direct Cloud On-RampsOver 1 – as of December 2025AWS provides local direct connectivity for low-latency workloads.
Power CostOMR 0.02/kWh – as of December 2025Among the most competitive industrial rates in the GCC.
Disaster RiskLow (2.5/10) – as of December 2025Stable profile with specific coastal surge considerations.
Tax IncentivesYesIncludes export credit guarantees and entrepreneur support programs.
Sales Tax5% VAT – as of December 2025One of the lowest VAT rates in the region.

Network & Connectivity Ecosystem

Muscat functions as a digital crossroad for the Middle East, serving as a primary interconnection point for international traffic. As of December 2025, the infrastructure is optimized for high-capacity service providers and global enterprises.

Carrier Density & Carrier Neutrality: Carrier count: over 15 as of December 2025. The market is defined by a mix of local incumbents and global colocation leaders, providing a neutral environment for efficient traffic management.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions as of December 2025. AWS provides direct local connectivity options to minimize latency for hybrid workloads and cloud-native applications.

Internet Exchange Points (IXPs): The Omantel Internet Exchange (OMIX) and the Equinix MC1 facility serve as the primary engines for regional traffic exchange, significantly reducing the need for international backhaul as of December 2025.

Bare Metal: High-performance bare metal services are available via providers like Latitude.sh, supporting compute-heavy deployments and rapid scaling as of December 2025.

Power Analysis

Muscat provides a reliable power profile essential for 24/7 data center operations. The local infrastructure supports industrial growth with a focus on long-term cost stability.

Average Cost Of Power: OMR 0.02/kWh as of December 2025. This rate is highly competitive within the GCC, offering a stable cost foundation for large-scale operations. The energy mix is currently dominated by natural gas, ensuring a consistent and predictable supply.

Power Grid Reliability: The grid in Muscat is well-engineered and resilient. Major data center corridors benefit from multi-substation support, ensuring reliable uptime for critical infrastructure without the frequent interruptions often found in developing markets.

Market Access, Business & Tax Climate

Oman offers a business-friendly environment focused on economic diversification and attracting foreign digital investment.

Proximity To Key Business Districts: Data centers are located near the Ruwi and Bawshar districts, the core of Oman's financial and telecommunications sectors. This puts hardware close to major enterprise users and government entities.

Regional Market Reach: Muscat acts as a low-latency bridge between the Indian Ocean and the Persian Gulf. It is the logical choice for serving the Omani market and reaching surrounding regional hubs with speed.

Tax Advantage For Data Centers: The 5% VAT rate is exceptionally low for the region, and there is no personal income tax. General export credit guarantees help reduce financial risk for international firms establishing a local presence.

Natural Disaster Risk

Muscat maintains a Low overall risk profile (2.5/10) as of December 2025. While the geological environment is stable, its coastal position requires specific facility planning for maritime events.

Tsunami: 9.0 (High). This is a material regional risk for coastal infrastructure, requiring specific elevation and surge protection measures as of December 2025.

Coastal Flood: 5.6 (Moderate). Facilities near the shoreline must account for seasonal surge events and sea-level considerations as of December 2025.

Epidemic: 4.9 (Moderate). Public health readiness is consistent with regional averages as of December 2025.

Tropical Cyclone: 3.8 (Low). Occasional cyclones impact the coast, though modern infrastructure is built to withstand high winds as of December 2025.

Drought: 3.4 (Low). While the climate is arid, this does not directly threaten data center uptime as of December 2025.

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