Five companies from Oman, the United Arab Emirates, and Italy have signed an agreement to develop a hyperscale AI data center in the sultanate.

The “green data center” will have a planned capacity of 150MW and feature renewable energy and high-efficiency systems to lower its environmental impact.

The firms involved in the agreement include Dubai-based consultancy Corpolgia, Omani oil and gas equipment supplier Ahlam Group, Italian security specialist Forte Secur Group, Italian contractor Vitali, and Genoa-based engineering consultancy RINA.

The agreement, which was signed at the Oman Sustainability Week on Monday (18 May), is expected to advance the sultanate’s Vision 2040 strategy to diversify the country’s economy away from oil production.

“This initiative represents the beginning of a strategic collaboration focused on sustainability, advanced digital infrastructure, energy efficiency and future-ready technologies, fully aligned with Oman Vision 2040,” said the Dubai branch of the Italian Trade Agency on LinkedIn.

“A proud moment for international cooperation and for the strengthening of economic and technological relations between Italy, Oman, and the UAE.”

Oman is rapidly transforming into a major regional digital hub driven by state-backed initiatives, submarine cable networks, and strategic partnerships.

Earlier this month, the sultanate entered a collaboration with Algeria to establish data centers and develop AI and digital government initiatives.

Recently announced subsea cable projects include Meta's Daraja cable linking Kenya to Salalah, Google's Dhivaru cable connecting the Maldives and Christmas Island, and the delayed SING cable project backed by Cerberus Capital Management, expected to be operational by 2030.

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