$1.3 bn Al Khadra Digital project to bolster Oman’s AI hub ambitions

MUSCAT, OCT 24
Oman’s strategy to emerge as a regional hub for artificial intelligence (AI), hyperscale data centres and advanced digital infrastructure is set to receive a major boost from the proposed $1.3 billion (approximately RO 500 million) Salalah Al Khadra Digital project, being spearheaded by UK-based green energy developer Yamna in cooperation with the Ministry of Transport, Communications and Information Technology (MoTCIT).
The project marks a significant expansion of Yamna's investment interests in Oman, where the company is already involved in a large-scale green hydrogen development in Dhofar Governorate.
According to an official UK government announcement, the initial phase of the proposed data centre project is expected to attract investments exceeding £1 billion, equivalent to approximately $1.34 billion. The investment projection was highlighted during the recent state visit of His Majesty Sultan Haitham bin Tarik to the United Kingdom.
The agreement, signed during the visit, is intended to accelerate the development of large-scale AI and hyperscale data centre infrastructure in Oman, supporting the Sultanate of Oman's ambition to emerge as a regional hub for cloud computing and next-generation digital services.
Announcing the partnership, Yamna described the agreement as 'an important step in advancing Salalah Al Khadra Digital', underscoring the opportunity to bring together British investment and expertise with Oman's ambitions to develop a world-class digital economy.
Yamna CEO Abdelaziz Yatribi welcomed the agreement as a milestone in the company's expanding engagement with Oman.
'Proud that Yamna can help connect Oman's ambition with UK investment and expertise,' Yatribi stated, acknowledging the support of senior Omani officials and the UK Foreign, Commonwealth & Development Office.
Significantly, the Salalah initiative follows Yamna's announcement earlier this year of its diversification into green data centre development, drawing on its established expertise in renewable energy and green hydrogen.
In a report published on April 6, 2026, the Oman Daily Observer highlighted the potential for Yamna's emerging digital infrastructure business to complement its existing green hydrogen investment in Dhofar.
Yamna is partnering with France's EDF Group and Japan's J-Power on a major green hydrogen project awarded by Hydrom in April 2024. Spanning approximately 341 sq km, the development envisages 4.5 GW of renewable energy capacity, a 2.5 GW electrolyser and annual production of up to one million tonnes of green ammonia.
The company's digital infrastructure strategy centres on integrated power-and-data campuses combining renewable generation, battery storage and potentially hydrogen-based power solutions to deliver reliable, low-emission electricity for energy-intensive computing operations.
Explaining this Power-to-X approach earlier, Yatribi said: 'As AI drives unprecedented demand for both clean power and computing capacity, our integrated approach enables faster, more efficient, and greener infrastructure that will underpin the digital economy.'
The Salalah project could therefore provide a new avenue for domestic renewable energy and green hydrogen consumption, while strengthening Oman's appeal as a destination for high-value digital investments.
However, the extent to which the proposed data centre will draw on Yamna's Dhofar hydrogen development, including any dedicated renewable energy or hydrogen-based power infrastructure, has yet to be formally disclosed.