Data Centers in Bangladesh

Bangladesh – A Strategic Hub for South Asian Digital Services

Bangladesh represents an emerging data center market positioned to serve a massive domestic population and act as a digital gateway to South Asia. For businesses targeting this region, establishing a local infrastructure footprint is critical for reducing latency and improving service delivery, directly impacting user experience and revenue. The market offers compelling power costs, though connectivity is still developing.

Bangladesh: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market has limited direct carrier competition, with a single primary provider and 23 data centers reported nationally as of September 2025. This structure centralizes connectivity, making carrier-neutral facilities essential for creating resilient network architectures.

Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers as of September 2025. Businesses connect to cloud services via network extensions to the nearest primary hubs, typically Mumbai, India, or Singapore. Private line and wave services are the standard methods for achieving secure, low-latency cloud access.

Internet Exchange Points (IXPs): The Bangladesh Internet Exchange (BDIX) is the primary peering point in the country. Utilizing BDIX allows service providers and content networks to exchange traffic locally, which reduces latency for domestic end-users by avoiding international transit.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer solutions suitable for businesses needing direct hardware control.

Power Analysis

Average Cost Of Power: The industrial electricity rate in Bangladesh is approximately US$0.06/kWh as of September 2025. This extremely competitive pricing makes running high-density compute workloads more economical than in many other Asian markets. The power generation mix is dominated by natural gas (57%) and other fossil fuels.

Power Grid Reliability: Grid stability can be a concern, making data center resilience features critical. Facilities in primary commercial zones like Dhaka are typically supported by redundant power feeds, robust UPS systems, and multiple on-site generators to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Dhaka, the nation's economic hub. This proximity serves the dense concentration of financial services, telecommunications companies, and manufacturing firms, ensuring minimal latency for critical business operations.

Regional Market Reach: With a population exceeding 170 million, Bangladesh itself is a significant market. Geographically, it serves as a strategic point to deliver services to neighboring eastern Indian states and Myanmar, reaching a vast and rapidly digitizing population.

Tax Advantage For Data Centers: The country does not currently offer specific tax incentives for data center development or operation. Businesses should plan based on the standard corporate tax structure and the 15% Value Added Tax on services.

Natural Disaster Risk

Bangladesh has a High-risk profile for natural disasters, with an INFORM Risk score of 6.0 out of 10 as of September 2025. The country's low-lying geography and location in a seismically active region present significant challenges that demand purpose-built, hardened facilities.

Key natural hazards include:

• River Flood: Extremely high risk (9.9/10)
• Earthquake: Very high risk (8.9/10)
• Coastal Flood: Very high risk (8.9/10)
• Tsunami: High risk (8.1/10)
• Tropical Cyclone: High risk (7.9/10)