A consortium of Omani and international companies has announced plans for an AI data center complex in Salalah, Oman, backed by an initial investment of $3 billion.

The facility will be purpose-built for hyperscalers and will have a planned capacity of up to 400MW, with the potential for future expansion. It will be powered by a mix of grid and renewable energy.

The consortium is led by Omani investment firm Mubbadrah and includes London-based financial company Sustopia Capital, global holding company Vela Tech, and Dubai-based renewable energy developer and investor O2 Global Energy.

O2 Global Energy will develop 400MW of solar generation with battery storage for the project.

The $3bn investment represents the scope of the infrastructure development, including buildings, electricity, cooling, network connectivity and fiber, said Yasser Al Barami, CEO of Mubbadrah Investment in a LinkedIn post.

“Servers and specialized chips, meanwhile, are typically provided by the tenants according to their specific needs, representing additional investments within the facility,” he added.

The announcement was made at an event in London with Omani and UK representatives during Sultan Haitham bin Tarik’s three-day state visit to the UK in October.

The consortium said that American cloud computing firm Crusoe has indicated interest in becoming a potential customer for the project’s data centre capacity.

Al Barami said: “As an Omani investment group with a portfolio of more than 20 companies across oil and gas, hospitality, healthcare and other sectors, Mubbadrah Investment is proud to lead this consortium of Omani and international companies.

“Oman has the stability, the strategic location and the energy resources to become a regional home for AI infrastructure, and we are delighted to bring together partners with the capital, technology and experience to make that happen, creating lasting value and opportunities for Oman and its people.”

Nikhil Chouguley, CEO of Sustopia Capital, said: “Through our 5GW data center platform spanning Denmark, the US and the UK, we are building the foundations for the next era of AI, quantum computing and digital innovation. Our expansion into Oman is a strategic extension of this vision, positioning Sustopia at the intersection of the global AI infrastructure and energy transition.”

Sustopia Capital and Vela Tech are currently developing, designing and constructing about 20GW of AI data centre capacity around the world.

Yazan Faouri, founder and CEO of O2 Global Energy, said: “O2 Global Energy is active in several countries and brings 12 years of experience developing solar and renewable energy projects.

“As the founder of both O2 and H2 Global Energy, a leading green hydrogen and green ammonia developer in the MENA region, I look forward to delivering clean, reliable power for one of the region’s most important digital infrastructure projects.”

Learn more about the data center market in Saudi Arabia and the wider MENA region and meet with other executives and experts in the region at the DCN Riyadh event next year.