Data Centers in Bangladesh

Bangladesh – Gateway to a Growing Digital Economy

Executive Summary

Bangladesh is a critical market for any business targeting South Asia's vast and rapidly digitizing population. While its digital infrastructure is still developing, the country offers compelling operational cost advantages and direct access to over 170 million people. Deploying infrastructure here is essential for low-latency content delivery and service availability, directly impacting user experience and market penetration.

Bangladesh: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As of September 2025, the market includes over 23 data centers. While carrier choice is still maturing compared to established hubs, facilities in key cities like Dhaka provide access to all major national telecom providers and international gateways. True carrier-neutral facilities are becoming the standard for new developments.

Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps as of September 2025. Businesses connect to cloud providers by extending their networks to major regional hubs, most commonly Mumbai and Singapore, via private network interconnects or wavelength services offered by global carriers.

Internet Exchange Points (IXPs): The Bangladesh Internet Exchange (BDIX) is the primary IXP. It plays a vital role in keeping domestic traffic within the country, which significantly reduces latency for local users and lowers transit costs for service providers.

Bare Metal: Bare metal server availability is growing, primarily through regional and global providers. Companies like Hivelocity and Leasweb can service the market, offering dedicated compute for workloads that demand performance without the virtualization overhead.

Power Analysis

Average Cost Of Power: The average industrial power cost is approximately US$0.06/kWh, as of September 2025. This extremely competitive rate makes Bangladesh a financially attractive location for organizations deploying power-hungry infrastructure.

Power Grid Reliability: The national power grid can experience inconsistencies. However, commercial data centers are engineered to overcome this with redundant power feeds from multiple substations, N+1 or 2N UPS systems, and on-site diesel generators with extensive fuel reserves to ensure uninterrupted uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Dhaka, the nation's economic and administrative capital. This provides low-latency connectivity to the country's financial services sector, government agencies, and the headquarters of major national enterprises.

Regional Market Reach: With one of the world's largest populations, a data center in Bangladesh provides direct and efficient access to its 170+ million citizens. It is the most effective location for serving this domestic market and can act as a supplementary site for reaching eastern India.

Tax Advantage For Data Centers: Bangladesh does not currently offer specific tax incentives tailored to data center investment or operation. The primary financial benefit for operators is derived from the country's low operational costs, particularly for power and labor, rather than from tax credits or abatements.

Natural Disaster Risk

Bangladesh has a High-risk profile for natural disasters, with an INFORM Risk score of 6 out of 10 as of September 2025. The physical location of a facility and the quality of its construction are paramount for mitigating these threats.

Key environmental risks include:

• River Flood: Extremely high risk due to the country's position within a large river delta.
• Earthquake: Significant seismic risk, requiring facilities built to modern earthquake-resistant standards.
• Coastal Flood: High exposure for facilities located in coastal areas like Chittagong.
• Tropical Cyclone: The Bay of Bengal is an active region for cyclones, posing a threat of high winds and storm surges.