Summary
- The UK government says Yamna is expected to agree a large AI data centre development in Salalah, with first-phase investment projected above £1 billion.
- The project is expected to create more than 100 skilled jobs in the UK, but a signed agreement and committed financing have not been confirmed.
- Yamna's separate Dhofar hydrogen project provides regional energy development experience, not an established electricity supply arrangement for the data centre.
UK-founded infrastructure developer Yamna is expected to sign an agreement for a large AI data centre development in Salalah, Oman, with investment in the proposed first phase projected to exceed £1 billion, according to the British government.
The project was identified on 21 October during the state visit of Sultan Haitham bin Tarik to the UK. The government expects it to support more than 100 highly skilled British jobs through engineering expertise, investment activity, and other services associated with the proposed development.
Yamna is a London-based infrastructure development and investment company whose activities span renewable energy, hydrogen production, and digital infrastructure. Its expansion into data centres is based on developing computing facilities alongside electricity generation and supporting energy systems.
The government’s statement describes the Salalah agreement as one Yamna is expected to sign. No subsequent primary confirmation has established that the agreement was completed, and the Omani counterparty and contractual terms have not been disclosed.
Similarly, the projected investment of more than £1 billion refers to the proposed first phase. It is not evidence that the developer has secured financing, committed that amount of capital, or started construction.
Neither Yamna nor the government has published the intended electrical capacity, the number of data centre buildings, the precise site, an anchor computing customer, or a construction timetable. The development therefore cannot yet be compared on a megawatt basis with other announced AI infrastructure projects.
The proposal follows Yamna’s entry into the digital infrastructure market earlier in 2026. The company has described an approach that combines land development, renewable electricity, battery storage, backup power, and computing infrastructure to reduce reliance on conventional grid connection arrangements.
That strategy reflects the importance of electricity availability to the development of large AI installations. A site may have sufficient land and commercial demand for computing capacity but remain unable to operate until the necessary electrical infrastructure has been installed and commissioned.
Developing power infrastructure alongside data centres can provide greater control over the delivery programme, although the practical result depends on the capacity, reliability, and operating characteristics of the electricity system selected.
Renewable generation also introduces requirements beyond matching annual electricity production with expected consumption. Computing equipment requires power at the times and levels dictated by its workload, while generation from wind and solar installations changes with weather conditions.
Battery storage can manage some variations in supply and demand, but its contribution depends on storage capacity, discharge duration, charging arrangements, and the availability of other electricity sources.
Backup generation and utility connections may therefore remain necessary, depending on the intended resilience standard and the configuration of the proposed facility. Yamna has not identified the electrical supply design for Salalah or established whether the project will use dedicated generation, a conventional grid connection, or a combination of arrangements.
The company has an existing development presence in Oman’s Dhofar Governorate through a separate green hydrogen and ammonia programme. In April 2024, a consortium comprising EDF, J-POWER, and Yamna secured development rights over approximately 341 square kilometres for a proposed industrial energy project.
That project envisages approximately 4.5GW of wind and solar generation, battery storage, and a 2.5GW electrolyser, with hydrogen intended for conversion into ammonia at a facility in the Salalah Free Zone.
The hydrogen development provides evidence of Yamna’s experience with large energy projects in the region. However, no published arrangement establishes that its proposed generation or electricity connections will supply the newly announced data centre.
The two projects also have different intended uses for electricity. Electrolysis converts electrical energy into hydrogen for industrial applications, while a data centre uses electricity directly to operate computing equipment and supporting infrastructure.
Integrating the projects would require additional technical and commercial agreements, including the allocation of generating capacity, electrical distribution arrangements, and the management of competing demand. Those arrangements have not been disclosed.
Cooling will be another major element of the proposed installation. Dense GPU systems can require liquid cooling at equipment level, while the facility must provide sufficient heat rejection capacity to maintain temperatures within the required limits.
Salalah’s environmental conditions would influence the selection and operation of that infrastructure. Cooling plant design must account for seasonal temperatures, humidity, available water, electricity consumption, and the thermal characteristics of the computing hardware.
Yamna has not published a project-specific cooling design, a forecast power usage effectiveness figure, or an assessment of annual water requirements. Its wider commitment to efficient infrastructure therefore remains separate from measured or independently validated performance at the proposed Oman site.
Connectivity presents a similar question. The Salalah region provides access to international submarine cable infrastructure, but a data centre would still need suitable terrestrial connections, network services, and arrangements supporting the applications and customers it intends to host.
Proximity to cable landing infrastructure does not establish the bandwidth or network redundancy available at the proposed facility. Those characteristics depend on the precise location and the telecommunications services eventually commissioned.
The UK government announced the Yamna proposal within a broader package of trade and investment measures. Britain and Oman are seeking to strengthen cooperation through their existing Sovereign Investment Partnership, which covers sectors including energy and technology.
UK Export Finance is also increasing its financing capacity for British exports to Oman to as much as £7 billion. That facility applies to potential trade support across the bilateral relationship and has not been identified as a dedicated loan or guarantee for Yamna’s data centre.
The distinction is important when assessing how the Salalah project may be funded. A government’s intention to support trade and a developer’s projected capital expenditure do not constitute evidence that lenders or investors have approved the proposed installation.
The anticipated British employment also remains a forecast. The announcement identifies more than 100 skilled UK jobs but provides no breakdown by profession, business, or location, and does not specify how those positions would be distributed over the development programme.
The project’s UK connection is nevertheless specific: it involves a British-founded developer, UK-backed investment, and the prospective export of specialist expertise. This distinguishes the proposal from overseas computing projects with no identified British infrastructure or commercial involvement.
Further progress will depend on confirmation of the proposed agreement, identification of its parties, and disclosure of land, power, financing, permitting, and customer arrangements. Those developments would provide a clearer indication of the project’s scale and delivery prospects.
At present, the £1 billion-plus first phase is an anticipated investment in a proposed AI data centre. Neither its operating capacity nor the final agreement and construction programme have been established.
