MUSCAT : Oman is seeking to expand its artificial intelligence infrastructure with a planned data centre in Salalah whose first phase is expected to require more than £1 billion in investment.

UK-founded infrastructure developer and investor Yamna is set to sign an agreement to develop the facility, according to a British government announcement on October 21. The company is backed by British investment funds.

The project was announced as part of a broader investment package during His Majesty Sultan Haitham bin Tarik’s state visit to the United Kingdom. It would bring a substantial technology infrastructure investment to southern Oman as Gulf economies compete to attract the computing capacity underpinning AI and cloud services.

For Oman, the next milestone will be turning the proposed investment into a financed, operational facility. The announcement did not disclose the data centre’s computing capacity, power requirements, construction schedule or prospective customers.

Those details will determine the scale of the project and its ability to attract businesses seeking infrastructure for demanding AI workloads. No date has been announced for the start of operations.

The British government expects the development to create more than 100 highly skilled jobs across the UK through the export of British expertise, while generating returns for UK-backed investors. It did not specify how many jobs would be created in Oman.

Salalah’s digital ambitions

The proposed facility could give Salalah a larger role in Oman’s digital economy, extending technology investment beyond the capital, Muscat.

Its commercial prospects will depend on securing reliable power, network connectivity and sufficient demand from customers. Public announcements have yet to establish whether the centre would serve Omani businesses, international clients or both.

The investment figure covers the anticipated first phase. A total development cost and details of subsequent phases have not been disclosed.

The plan comes alongside a wider expansion of British financial support for trade with Oman. UK Export Finance intends to increase its capacity to support British exports to the country to as much as £7 billion. That represents available financing support, rather than committed investment in the Salalah facility.

The two governments are also strengthening a sovereign investment partnership established in 2022, through which Oman has invested £1.7 billion in the UK, according to the British government.

For the Salalah project, attention now shifts to the development agreement and the technical and commercial commitments needed to move into construction. The proposed first phase signals the scale of the ambition; delivery will determine its contribution to Oman’s position in the regional AI market.

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