Yamna and MTCIT sign strategic agreement on AI data centers
On October 21, 2026, The Sultanate of Oman’s Ministry of Transport, Communications and Information Technology (MTCIT) signed a strategic cooperation agreement with Yamna in London during the State Visit of His Majesty Sultan Haitham bin Tarik to the United Kingdom 1.
The agreement aims to accelerate large-scale AI data center and hyperscale infrastructure in Oman. This includes Salalah Al Khadra Digital, Yamna’s planned AI data center campus in Salalah, in Oman’s Dhofar Governorate 2.
Salalah Al Khadra Digital forms part of the Oman Digital Triangle, which MTCIT describes as three interconnected digital zones for cloud, AI, and advanced digital services 1,3. As such, the campus will contribute to MTCIT’s National Digital Economy Program under Oman Vision 2040 4.
Oman has the national ambition and natural resources needed to provide the power, cooling, and connectivity that AI needs. Salalah brings these strengths together in one place, and Yamna has the experience to deliver.
Why Oman: national programs meet rising GCC demand
Middle East data center capacity is projected to triple
BCG projects that global data center power demand will rise from 86 GW in 2025 to 198 GW by 2030, with more than half supporting AI 5. In the Middle East, PwC expects data center capacity to roughly triple within five years, with GCC countries at the forefront 6. The region also lies within 2,000 miles of more than 3 billion people 5. AI data center capacity built in Oman would therefore be able to service a large and growing market.
Oman Vision 2040 sets a 10% digital economy target
Domestic demand in Oman is also expected to grow, supported by Oman Vision 2040, which boosts the use of AI in government services and in critical sectors such as energy, oil and gas, logistics, healthcare, financial services, education, and smart cities 4. MTCIT’s National Digital Economy Program aims to raise the digital economy’s share of GDP from 2% to 10% by 2040 4. Critical to this is the development of new domestic data centers, supported by the National Program for Artificial Intelligence and Advanced Digital Technologies (2024–2026), which encourages investment in new AI data centers 7, and by MTCIT’s Green AI Alliance, which covers green data centers and efficiency metrics such as power usage effectiveness (PUE) 3.
Oman ranks sixth globally for solar PV potential
With vast land area and ample renewable resources, Oman has the natural resources to power data center build-out. The World Bank’s Energy Sector Management Assistance Program (ESMAP) ranks Oman sixth of 207 countries and regions for practical solar photovoltaic potential 8. The International Energy Agency (IEA) states that the intensity of solar radiation in Oman is among the highest in the world 9. The Ministry of Energy and Minerals’ policy targets 30–40% renewable electricity by 2030 10.
Cost matters as much as resource. The IEA reports that since 2019, all but one utility-scale solar PV project in the Middle East and North Africa has been awarded below $0.04/kWh 9. Based on recent regional bid prices, the IEA adds that utility-scale solar PV and wind are likely already competitive with natural gas in Oman. These natural benefits could give behind-the-meter (BTM) solar a structural cost and sustainability advantage for AI infrastructure in Oman.
Why Salalah: power, cooling, and connectivity in one place
Salalah is well positioned to meet three critical requirements for AI infrastructure: reliable and scalable power, favorable conditions for efficient cooling, and international connectivity.
Dhofar’s power grid is joining Oman’s national network
Starting with power, Salalah’s electricity infrastructure is undergoing a major transformation through the 400 kV North–South Interconnection Project, known as Rabt, developed by the Oman Electricity Transmission Company (OETC). Following the completion of Phase 1 in 2023, construction of Phase 2, which will connect the Dhofar Power System serving Salalah to Oman’s main electricity grid, is well advanced, with completion targeted around the end of 2026 10.
This strategic investment will strengthen grid resilience, facilitate renewable energy integration, and support the development of large-scale industrial and digital infrastructure in the region.
Khareef season gives Salalah data centers cooler air
Cooling is the next requirement. During the Khareef monsoon, from mid-June to September, temperatures in Dhofar range from 20°C to 28°C 11. Cooler air reduces the energy an AI data center needs to cool its servers. The IEA estimates that cooling accounts for about 7% of total consumption in efficient hyperscale data centers and over 30% in less efficient enterprise facilities 12. During the Khareef, Salalah’s climate can lower the share of energy that AI data centers spend on cooling.
Salalah’s subsea cables link Oman to three continents
Salalah is emerging as a major international connectivity hub, supported by submarine cable systems including Gulf2Africa (G2A) and 2Africa, with additional capacity expected from India-Europe Xpress (IEX) and Raman 13,14,15,16. The presence of separate cable landing infrastructure operated by Omantel and Ooredoo, together with the carrier-neutral Equinix SN1 facility, further strengthens Salalah’s position as a strategic interconnection hub linking Asia, Africa and Europe. This growing connectivity ecosystem provides a strong foundation for the development of hyperscale and AI data centres.
Why Yamna: Salalah experience and an integrated power model
Yamna has extensive experience developing projects in Salalah
Delivering this infrastructure takes local experience. Yamna is a UK-founded infrastructure development and investment company backed by British investment funds 17. In 2024, Hydrogen Oman (Hydrom) awarded a consortium of EDF Group, J-POWER, and Yamna a land block in Dhofar for a green ammonia project, through a competitive tender 18.
The consortium signed agreements with Hydrom granting exclusive rights to develop, build, own, operate, and maintain the project for 47 years 18. Its downstream ammonia plant is planned for the Salalah Free Zone 19. This work has given us direct experience of developing infrastructure projects and integrating large-scale power solutions in Dhofar and Salalah.
Yamna’s AI data center model starts with the power supply
Our approach to data centers builds on that energy background. Our team has delivered, invested in, and operated renewable and complex energy projects worldwide. In April 2026, we launched a digital infrastructure business to develop, build, own, and enable integrated power and data campuses for AI and hyperscale workloads 20. Our power model combines utility-scale renewables with battery energy storage systems (BESS) and backup power 21.
Salalah Al Khadra Digital builds on Oman Vision 2040
Oman has set its own direction for the digital economy through Oman Vision 2040 and the Oman Digital Triangle 1,4. Salalah adds the power, cooling, and connectivity that AI infrastructure needs. Our shared objective with MTCIT is to accelerate AI data center and hyperscale infrastructure in Oman, as the agreement sets out 2. We want that infrastructure to serve Oman’s ambition to become a regional hub for AI and cloud computing 2.
Investors, customers, and other stakeholders interested in Salalah Al Khadra Digital can contact our digital infrastructure team through yamna-co.com/contact.
FAQ
Why build an AI data center in Oman?
PwC projects that Middle East data center capacity will roughly triple within five years 6. Oman ranks sixth of 207 countries and regions for practical solar photovoltaic potential 8. MTCIT’s National Digital Economy Program targets a 10% digital economy share of GDP by 2040, under Oman Vision 2040 4.
Why is Salalah suited to AI data centers?
During the Khareef monsoon, from mid-June to September, temperatures in Dhofar range from 20°C to 28°C 11. The national grid is scheduled to reach the Dhofar Power System by the end of 2026 10. Salalah is served by submarine cable systems including Gulf2Africa (G2A) and 2Africa, with additional capacity expected from India-Europe Xpress (IEX) and Raman. 13,14,15,16
What is Salalah Al Khadra Digital?
Footnotes
1 - Oman News Agency — Arabic-language report on the signing between MTCIT and Yamna. October 21, 2026
2 - Oman Observer — $1.3 bn Al Khadra Digital project to bolster Oman’s AI hub ambitions. October 24, 2026
3 - Ministry of Transport, Communications and Information Technology (MTCIT) — Launch of COMEX 2025: Announcement of the Green Artificial Intelligence Alliance and Unveiling of the 'AI Designated Zone' and 'Digital Triangle' Projects. September 8, 2025
4 - Ministry of Transport, Communications and Information Technology (MTCIT) — National Digital Economy Program. Page updated October 29, 2026
5 - Boston Consulting Group (BCG) — AI Data Centers: An Opportunity in the Middle East. November 2025
6 - PwC Middle East — Unlocking the data centre opportunity in the Middle East. April 10, 2025
7 - Ministry of Transport, Communications and Information Technology (MTCIT) — Oman AI & Digital Future Program (2024–2026). September 22, 2024
8 - World Bank / ESMAP — Global Photovoltaic Power Potential by Country. 2020, country ranking data (average practical potential, PVOUT Level 1)
9 - International Energy Agency (IEA) — Renewable Hydrogen from Oman. 2023
10 - Nama Power and Water Procurement (PWP) — 7-Year Statement. Issue 19 (2025–2031), 2025
11 - Ministry of Heritage and Tourism (Experience Oman) — Weather. Accessed October 2026
12 - International Energy Agency (IEA) — Energy and AI. April 2025
13 - TeleGeography — Gulf2Africa (G2A). Submarine Cable Map, accessed October 2026
14 - Developing Telecoms — 2Africa comes to Oman via Muscat and Salalah. May 14, 2024
15 - Omantel — Our Portfolio: Driving Omantel’s Evolution. Integrated Annual Report 2024
16 - TeleGeography — Raman. Submarine Cable Map, accessed October 2026
17 - GOV.UK (Foreign, Commonwealth & Development Office) — Major investment to drive growth and jobs across Britain as Sultan of Oman visits UK. October 21, 2026
18 - EDF Group, J-POWER and Yamna (press release via Zawya) — EDF Group, J-Power and Yamna Consortium Awarded a 1 Mtpa Green Ammonia Project in Oman. April 2024
19 - Oman Observer — Oman signs pacts worth $11 billion for two new green hydrogen projects. April 29, 2024
20 - Yamna — press release announcing its digital infrastructure business. April 2, 2026
21 - Yamna — Green Digital Infrastructure page. Accessed October 2026
