Data Centers in Chittagong
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Chittagong – Bangladesh's Coastal Gateway
Chittagong serves as a strategic digital infrastructure hub for enterprises targeting Bangladesh's second-largest city and its primary seaport. The market offers highly competitive power pricing and essential connectivity, making it a viable location for content delivery, logistics, and manufacturing IT operations that require low latency access to the region. For businesses prioritizing uptime in a high-risk natural disaster zone, careful facility selection is critical.
Chittagong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, with some reliance on national hubs for international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are in India; private connectivity is available. |
| Power Cost | US$0.06/kWh – as of September 2025 | Extremely competitive pricing for industrial power, among the lowest in the region. |
| Disaster Risk | High (6/10) – as of September 2025 | Significant exposure to multiple natural hazards requires resilient infrastructure planning. |
| Tax Incentives | No | No specific incentives are currently offered for the data center sector. |
| Sales Tax | 15% VAT – as of September 2025 | Standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Chittagong features a developing carrier ecosystem. While a specific public count is unavailable, the market is served by major national providers, with at least one carrier-neutral facility available to foster interconnection.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Chittagong as of September 2025. Businesses requiring dedicated cloud access typically connect to major hubs in India, such as Mumbai or Chennai, via private network extensions like PNI or wavelength services.
Internet Exchange Points (IXPs): The Chittagong Internet Exchange (CTGIX) is the primary peering point in the city. It facilitates local traffic exchange, which reduces latency and transit costs for connected networks.
Bare Metal: Bare metal server options are available in Chittagong, enabling businesses to deploy dedicated compute resources without capital expenditure. Providers like Hivelocity offer solutions in the region.
Power Analysis
Average Cost Of Power: The industrial electricity rate in Chittagong is approximately US$0.06 per kWh as of September 2025. This highly competitive pricing structure presents a significant operational cost advantage for compute-intensive workloads compared to other regional markets. The grid mix is primarily composed of natural gas (57%) and coal (19%).
Power Grid Reliability: The power grid in Chittagong, while improving, can experience stability issues common in developing markets. For this reason, data centers in the area are engineered with significant redundancy, including multi-megawatt generator farms, extensive UPS systems, and prioritized fuel delivery contracts to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chittagong are positioned to serve the city's primary port operations, the Agrabad commercial area, and the Chittagong Export Processing Zone. This proximity provides low-latency connectivity for shipping, logistics, and manufacturing companies.
Regional Market Reach: As Bangladesh's main seaport, Chittagong provides a digital gateway to the country's population of over 170 million. Its location on the Bay of Bengal also makes it a potential point of presence for serving eastern India and Myanmar.
Tax Advantage For Data Centers: There are no specific tax incentives for data center development or operation in Bangladesh. The primary financial advantage comes from the low operational costs, driven by competitive power and labor pricing.
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 city's coastal location and geography expose it to significant environmental threats that demand resilient infrastructure design and comprehensive disaster recovery planning.
Key risks include:
- River Flood: 9.9/10
- Earthquake: 8.9/10
- Coastal Flood: 8.9/10
- Tsunami: 8.1/10
- Tropical Cyclone: 7.9/10
