Oman to reach $428m data centre investment by 2026
Oman’s data centre market will grow at a compound annual growth rate of 9.6% during 2022-2028.
That is according to research from Arizton Advisory and Intelligence, which labels the country as an emerging data centre market with steady implementation of digitalisation, cloud-based services, 5G, big data and AI.
Cloud service providers such as Oracle, AWS, Microsoft and Google operate in the country through local partners in Oman.
Oman has free trade zones and special economic zones benefitting the industry and enterprise investments with tax incentives.
The country has the presence of around 14 existing submarine cables connected to the data centre markets in Europe, the Middle East, Africa and Asia through submarine cable connectivity.
The country says it aims to generate around 30% of renewable energy by 2040.
Oman’s data centres will likely receive over US$100 million in core and shell development investment during 2023-2028.
In the coming years, Oman will witness data centre investments form major colocation services such as Gulf Data Hub and Equinix.
The high adoption of cloud-based services is helping to grow both retail and wholesale colocation services in the region.
The research also indicates that the market is witnessing increased demand for colocation spaces across existing and upcoming data centres.
Oman was also a fairly early adopter of 5G, with Omantel launching the technology commercially in 2020.
In addition, Vodafone, Ericsson, Nokia and Ooredoo are witnessing investments in 5G deployments.