July 11, 2018

Equinix, Omantel ink JV deal for data center services in the Middle East

The joint venture aims to facilitate co-location and interconnection services in a bid to consolidate Oman’s position as a global ICT provider.

Telecom giant

Data center company Equinix have sealed a joint venture deal with telecom facilitator Omantel to provide co-location and interconnectivity services to customers in the Middle East. As per the terms of the deal, both companies will be building a network-dense data center in Barka, Oman to fortify its position as a worldwide provider of digital solutions.

Equinix claim that Oman is strategically located between Asia, Africa and Europe and the new IBX (International Business Exchange) data center will allow customers to leverage other Equinix data centers in these regions to build resilient IT network infrastructures. They also say that this new facility will benefit from connectivity to cable landing stations as well as subsea cable systems that increase performance and ensure security.

By sealing a joint venture with Omantel, Equinix believe that they will be able to boost Oman’s standing as a global provider of ICT solutions. They claim that with 18,600 square feet of colocation space and 750 cabinets, Equinix say that they will be able to attract customers from all over the world.

Speaking about the deal, Talal Al Mamari, CEO of Omantel, commented:

The planned IBX data center 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 a partnership will further enhance Oman’s competitiveness in the global digital economy and trade.

Equinix say that as per the joint venture deal, they will contribute USD 10 million along with Omantel to hold 50% equity. They further added that more funds will be raised through debt financing.

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.

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 centers and digital ecosystems meet. Our joint venture with Omantel will do exactly that.