Bahrain says it is the only country with a Data Embassy law, which lets foreign customers keep data stored in Bahrain under their home country's law. Commercial and other unsubsidised users have paid up to 32 fils per kWh since January 2026, about US$0.085. Personal data can leave Bahrain without approval only to countries on an official adequacy list.
Grid power for a large industrial user in Bahrain costs about US$0.095 per kWh as of September 2026, the country figure ArusGrid applies where a site has no published rate. The US export control position for advanced AI chips in Bahrain, as of 27 September 2026, is recorded as “Licence required as enforced (Country Group D:4), no named authorisation found”.
Who decides · Approvals and licensing · Power · Incentives · Data rules · Water and cooling · On the clock · 2 projects in Bahrain
US chip export licences for Bahrain are issued by the US Bureau of Industry and Security, and no Bahraini body administers them.
The only power and water utility, so it connects and supplies every site. It charges commercial users 32 fils per kWh above 5,000 units and 775 fils per cubic metre of water from January 2026. The minister said in March 2026 that a kWh costs 33.1 fils to produce.
Designates the data centres and foreign states covered by the Data Embassy law, Legislative Decree No. 56 of 2018, by a regulation in the official gazette. Under that law a foreign customer's data falls under the law of its home country. The Cabinet also raised the unsubsidised power tariff from 29 to 32 fils per kWh from January 2026.
Brings in data centre investors and runs the Golden Licence, launched in April 2023. The licence gives large projects priority processing and faster land allocation, and data centres were among the sectors it had supported by March 2024.
Runs the government's Cloud First policy, adopted in 2017, which moves public IT spending to cloud services. By January 2022 over 70% of systems from 72 government entities had moved to the cloud.
Enforces the 2018 personal data law. Data may go freely only to the countries listed in Order No. 42 of 2022. Transfers elsewhere need its case by case approval.
Its licensees need its prior written approval before any material cloud outsourcing. The rules also require encryption of sensitive data at rest and in transit.
Also involved, with no data center rule found yet.
Legislative Decree No. 56 of 2018 lets foreign customers store data in Bahrain data centres under the law of their home country. In January 2026 the finance minister said Bahrain remained the only country with such a law.
Bahrain's government adopted a Cloud First policy in 2017 to move public IT spending toward cloud services. By January 2022 over 70% of systems from 72 government entities had moved to the cloud.
Bahrain is in US export control Country Group D:4. Since an October 2023 rule, exports of advanced AI chips to Country Groups D:1, D:4 and D:5 need a US licence.
EWA charges non-domestic and commercial users 22 fils per kWh for the first 5,000 units and 32 fils per kWh above that. At Bahrain's fixed exchange rate, 32 fils is about US$0.085.
The Cabinet raised the electricity tariff for unsubsidised users, including commercial users, from 29 fils to 32 fils per kWh from January 2026.
The minister responsible for electricity said in March 2026 that producing one kWh costs 33.1 fils. He said industrial users pay 25 fils, with the state covering the 8.1 fils gap.
Bahrain's Golden Licence, launched in April 2023, gives large investment projects priority processing and faster land allocation. Gulf Business reported that data centres were among the sectors it had supported by March 2024.
Article 12 of the Personal Data Protection Law (Law No. 30 of 2018) allows transfers abroad to places with adequate protection. Order No. 42 of 2022 lists these countries, and transfers elsewhere need case by case approval from the data protection authority.
Central Bank of Bahrain (CBB) rules require licensees to get the CBB's prior written approval before entering any material cloud outsourcing arrangement. The rules also require encryption of sensitive data at rest and in transit.
EWA charges non-domestic and commercial users 775 fils per cubic metre of water. The rate rose from 750 fils in January 2026.
Batelco signed a memorandum with Qareeb Data Centres in November 2024 for a site in southern Bahrain. The 140,000 square metre facility is planned to run fully on solar power.
Bahrain is connecting to the SeaMeWe-6 subsea cable, which runs from Singapore to France. It was expected to launch in early 2026.
What this research looked for and could not confirm from a primary or credible source. Listed so the gaps are visible.
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