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Omantel and Equinix to build new telco data centre

Joint venture formed to build carrier-class data centre near Muscat

Omantel and Equinix to build new telco data centre
Omantel and Equinix have formed a joint venture for a new telco data centre in Oman.

Omantel has signed a deal with Equinix to build a new telco data centre for Oman.

The new data centre is intended to be the first world-class, carrier-neutral hub in Oman, to serve carriers, content providers and cloud services with co-location for critical infrastructure.

The 18,600 square feet centre will be built at Barka, near Muscat, and will benefit from connectivity to strategic cable landing stations (CLS) and subsea cable systems that terminate directly inside the facility. It will also benefit from the investments by Omantel in multiple strategic subsea cable systems throughout the region and world. This subsea cable connectivity will provide customers with significant cost savings and an increase in performance and security, the company said.

Oman is strategically positioned between Asia, Africa and Europe, and the new Equinix International Business Exchange (IBX) data centre will create a regional interconnection hub with ultra-low latencies between global business markets. Customers that require it will also be able to leverage other Equinix data centres in the region for dual access resilience.

Under the terms of the agreement, Equinix and Omantel will both fund equity contributions in an amount of $10 million for the joint venture representing a 50% shareholding each, and additional funds will be raised through debt financing assumed by the joint venture company. The shareholders' agreement was signed on 20th June, and the joint venture company was established on 26th June.

Talal Al Mamari, CEO, Omantel said: "We are excited to work with Equinix on this project and accelerate how users experience cloud, content and next-gen communications. Today, data centre infrastructure sits at the heart of global ICT and enables all of us to enjoy the cloud-based apps and services we use every day.

"The planned IBX data centre with Equinix in Oman represents a massive step forward for Oman and the Middle Eastern ICT markets. Working on this project will allow both companies to bring together their strong assets and enable a new era of telecommunications both locally and globally. Such partnership will further enhance Oman's competitiveness in the global digital economy and trade," he added.

Eric Schwartz, President, EMEA, Equinix commented: "We see significant potential for Oman as a market generally and, in particular, supporting CLS requirements as subsea cable momentum accelerates. It's all about meeting the growing need for interconnection - private data exchange between businesses. In the digital age, companies need to reach everywhere, interconnect everyone and integrate everything, and they need to do it out at the digital edge, where commerce, population centres and digital ecosystems meet. Our joint venture with Omantel will do exactly that."

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