Data Centers in Sargodha
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Sargodha – Strategic Edge Continuity in Central Punjab
Executive Summary
Sargodha serves as a critical infrastructure node for organizations requiring local edge presence in the industrial and agricultural heartland of Pakistan. It acts as a vital secondary site for disaster recovery and regional latency optimization within the Punjab province. This market is essential for ensuring data sovereignty and service continuity for high-volume manufacturing and citrus export sectors.
Sargodha: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional fiber growth across Punjab province. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is located in Lahore. |
| Power Cost | $0.14 – $0.18/kWh, as of September 2025 | National industrial rates for predictable operational planning. |
| Disaster Risk | High (6.4/10), as of September 2025 | Significant local risk from flooding and seismic activity. |
| Tax Incentives | Yes | Includes income tax exemptions and foreign equity. |
| Sales Tax | 18% GST, as of September 2025 | Standard federal rate on goods. |
Network & Connectivity Ecosystem
The connectivity landscape in Sargodha is characterized by steady expansion as national fiber backbones extend further into the Punjab region. As of September 2025, the market provides reliable transit for local enterprises and government institutions.
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of September 2025, the market supports a range of 5 to 10 distinct fiber paths. While diversity is growing, most infrastructure is concentrated along major transport corridors and national highways.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. As of September 2025, there are no direct on-ramps in the city. Nearest cloud access is found in Lahore, which serves as the primary regional hub for private connection to global cloud providers.
Internet Exchange Points (IXPs): There are no major public IXPs within the city limits. Most traffic peers via the Pakistan Internet Exchange (PKIX) nodes in Lahore or Islamabad to maintain performance and reduce international transit costs.
Bare Metal: Localized compute requirements are met through standard dedicated server offerings and regional providers. Companies such as Hivelocity or Latitude.sh represent the types of services available for those needing high-performance, single-tenant hardware.
Power Analysis
Power infrastructure in Sargodha is supported by the national grid with an emphasis on regional generation. Reliability is highest within dedicated industrial zones where infrastructure is prioritized.
Average Cost Of Power: Industrial rates range from $0.14 to $0.18/kWh, as of September 2025. This cost structure reflects a national mix of 66% fossil fuels and 27% hydro, making it a predictable expense for standard data center operations. The transition to renewable sources continues to influence long-term pricing trends.
Power Grid Reliability: The grid is well-engineered in major business corridors, often featuring multi-substation support. This redundancy helps manage the load requirements of modern facilities and ensures a consistent supply for critical hardware.
Market Access, Business & Tax Climate
Sargodha offers a stable environment for infrastructure investment, driven by its status as a major logistics and military hub.
Proximity To Key Business Districts: Facilities are strategically located near the city center and the Sargodha Cantonment. This proximity is essential for providing low-latency services to the local citrus processing industry and manufacturing sectors.
Regional Market Reach: This location serves as a vital node for central Punjab, reaching millions of people. It acts as a gateway for digital services expanding into the agricultural and retail markets of the surrounding districts.
Tax Advantage For Data Centers: Investors benefit from 100% foreign equity and specific financing support for national data center projects. These incentives help lower financial barriers for establishing high-tier infrastructure in the region.
Natural Disaster Risk
High (6.4/10), as of September 2025.
Sargodha is subject to several natural hazards that require resilient facility engineering and specific site selection. The risk profile is dominated by hydrological and seismic factors. As an inland metropolitan area, maritime risks are considered regional or indirect.
- River Flood (9.5): The most significant hazard, requiring elevated building designs and advanced drainage systems.
- Earthquake (9.2): High seismic risk necessitates strict adherence to modern building codes and structural reinforcement.
- Epidemic (7.4): A notable factor affecting operational continuity and workforce availability.
- Tropical Cyclone (7.1): Indirect effects from regional storms can lead to heavy precipitation and high winds.
- Drought (5.0): While a minor direct risk to facility structures, it can impact regional power generation and water cooling supplies.
- Tsunami & Coastal Flood: These are minor or not listed as direct risks due to the inland location of the city.
