Data Centers in Chittagong
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Chittagong – Strategic Gateway to the Bay of Bengal
Chittagong is an emerging colocation market designed for organizations targeting Bangladesh's growing economy and strategic port access. The market offers extremely competitive power pricing, making it a compelling option for compute-intensive workloads that require a foothold in South Asia. This location is best suited for disaster recovery sites and content delivery networks prioritizing regional distribution over direct, low-latency cloud access.
Chittagong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity, but limited international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are in Mumbai or Singapore. |
| Power Cost | US$0.06/kWh – as of September 2025 | Extremely competitive pricing driven by a gas-heavy generation mix. |
| Disaster Risk | High (INFORM Risk: 6/10) – as of September 2025 | High exposure to flooding and seismic activity requires resilient infrastructure. |
| Tax Incentives | No | No specific incentives are currently offered for data center operations. |
| Sales Tax | 15% VAT – as of September 2025 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the Chittagong market is served by at least one data center, with connectivity from a focused group of national and regional carriers. Carrier neutrality is developing, with options available for interconnecting with key providers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Chittagong, as of September 2025. Businesses require connectivity to major hubs like Mumbai or Singapore for dedicated cloud access, which can be achieved via private network extensions.
Internet Exchange Points (IXPs): Peering is primarily handled through the Bangladesh Internet Exchange (BDIX) in Dhaka. Direct peering within Chittagong is limited, making private interconnection the standard for high-performance traffic exchange.
Bare Metal: Bare metal server availability is present in the broader Bangladeshi market. Providers like Hivelocity and Leaseweb can offer compute solutions, typically provisioned from nearby regional hubs.
Power Analysis
Average Cost Of Power: The industrial power cost in Chittagong is approximately US$0.06/kWh, as of September 2025. This exceptionally low rate offers a significant operational cost advantage for high-density deployments compared to other regional markets.
Power Grid Reliability: The power grid supporting Chittagong's industrial areas is supplied primarily by gas and coal generation. Data center facilities in the region rely on multi-layered redundancy, including UPS systems and on-site generators, to ensure uptime during potential grid fluctuations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chittagong provide low-latency access to the city's Port, a critical maritime hub for the Bay of Bengal, and the Chittagong Export Processing Zone. This proximity is vital for logistics, manufacturing, and shipping companies.
Regional Market Reach: Chittagong serves as a digital gateway for the southeastern region of Bangladesh and can support operations extending into neighboring markets. Its strategic port location makes it an important node for subsea cable systems connecting the country.
Tax Advantage For Data Centers: The primary financial advantage is operational, driven by low power costs rather than specific tax breaks. While Bangladesh offers no direct data center incentives, the favorable operating expense structure directly benefits a company's bottom line.
Natural Disaster Risk
Chittagong has a high-risk profile for natural disasters, with an INFORM Risk score of 6 out of 10, as of September 2025. The data indicates significant exposure, requiring careful facility selection and robust disaster recovery planning.
Key risks for IT infrastructure include:
- River Flood: The highest individual risk factor (9.9/10).
- Earthquake: A major concern with a score of 8.9/10.
- Coastal Flood: Significant risk due to the city's coastal location (8.9/10).
- Tsunami: A notable threat for coastal infrastructure (8.1/10).
- Tropical Cyclone: High probability of cyclonic events impacting the region (7.9/10).
