Data Centers in Bangladesh

Bangladesh – Strategic Hub for South Asian Digital Growth

Executive Summary

Bangladesh is a high-growth frontier for enterprises targeting a mobile-first population of over 170 million. Localizing infrastructure here eliminates international latency and secures a dominant position in one of the most dense regional supply chains.

Bangladesh: At A Glance

Network & Connectivity Ecosystem

The connectivity landscape is maturing to support a surge in local data consumption and digital services.

Carrier Density & Carrier Neutrality: The market features over 15 carriers as of January 2026. While historical state influence remains, private facilities in Dhaka and Chattogram provide neutral environments for peering and interconnection.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in the country as of January 2026. Access to major global cloud platforms requires high-capacity transport to Singapore or India via the SMW4 and SMW5 submarine systems.

Internet Exchange Points (IXPs): The Bangladesh Internet Exchange (BDIX) is the central hub for local traffic, drastically reducing international bandwidth costs for domestic routing.

Bare Metal: Resilient bare metal services are available through local operators and regional providers. Reliable options such as phoenixNAP or Leaseweb can be used to manage hardware requirements without physical facility management as of January 2026.

Power Analysis

Energy stability is a priority for the government as it scales to meet industrial demand.

Average Cost Of Power: Industrial electricity is approximately US$0.06/kWh as of January 2026. The power mix is led by gas at 57% and coal at 19%, providing a stable cost base compared to many Western markets. These rates allow for competitive operational expenses in high-density deployments.

Power Grid Reliability: Grid engineering has seen upgrades in major data center corridors like Gulshan and Uttara. Professional facilities utilize redundant multi-substation feeds and onsite generation to ensure consistent uptime during peak demand periods as of January 2026.

Market Access, Business & Tax Climate

Bangladesh provides a strategic gateway to the broader Bay of Bengal economic zone.

Proximity To Key Business Districts: Data centers are centrally located in Dhaka and Chattogram. This provides immediate access to the garment export, logistics, and digital banking sectors, which require rapid response times for transaction processing.

Regional Market Reach: Positioned between Southeast Asia and the Indian subcontinent, Bangladesh is a transit point for regional traffic. It serves as a strong location for caching content destined for one of the most densely populated regions on earth.

Tax Advantage For Data Centers: No specific tax incentives for data centers exist as of January 2026. Localized hosting helps companies manage international bandwidth taxes and regulatory data residency requirements effectively.

Natural Disaster Risk

The region carries a High (6.0/10) risk profile as of January 2026, demanding specialized facility engineering.

River Flood (9.9/10): This is the primary environmental threat. Facilities use elevated equipment floors and specialized defense systems to remain operational.

Earthquake (8.9/10): High seismic risk across the territory necessitates strict adherence to modern building codes and structural reinforcement as of January 2026.

Coastal Flood (8.9/10): This impacts subsea landing stations in Chattogram and can disrupt international connectivity.

Tsunami (8.1/10): A regional risk for coastal infrastructure that requires hardened landing points for undersea cables.

Tropical Cyclone (7.9/10): Frequent seasonal events require reliable backup systems and hardened external infrastructure to manage high wind speeds and rain.