Data Centers in Chittagong
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Chittagong – The Coastal Edge for Industrial Growth
Executive Summary
Chittagong is the primary maritime gateway for Bangladesh, acting as a critical edge for industrial and logistics firms. It provides a strategic secondary site for disaster recovery and localized data sovereignty within a high-growth coastal economy.
Chittagong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Stable regional infrastructure with future growth potential. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Dhaka serves as the nearest primary on-ramp hub. |
| Power Cost | US$0.06/kWh, as of September 2025 | Competitive industrial rates supported by natural gas. |
| Disaster Risk | High (6.0/10.0), as of September 2025 | Coastal and seismic exposure requires resilient facility engineering. |
| Tax Incentives | No – as of September 2025 | Standard national rules apply without sector-specific breaks. |
| Sales Tax | 15% VAT, as of September 2025 | Standard national rate for digital services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier count: over 5. As of September 2025, the market is served by a focused group of local telecommunications providers and international long-distance operators. While options exist, the ecosystem is smaller than the capital, making diverse pathing a priority for resilient architecture.
Direct Cloud On-Ramps Over 0, enabling access to 0 cloud regions as of September 2025. There are no direct physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within the city limits. Local enterprises typically use private network interconnects or leased lines to reach cloud nodes located in Dhaka or regional hubs like Singapore.
Internet Exchange Points (IXPs) Peering is primarily handled through the Bangladesh Internet Exchange (BDIX), which helps keep local traffic within the country to reduce latency and transit costs.
Bare Metal Standard bare metal services are available through regional providers, with options for purpose-built hardware deployments via global partners such as Hivelocity or Latitude.sh.
Power Analysis
Average Cost Of Power Industrial electricity is priced at US$0.06/kWh as of September 2025. This rate is competitive for the region, supported by a generation mix consisting of 57% gas and 19% coal. For a data center operator, these low input costs are a significant factor in managing operational expenses.
Power Grid Reliability The power grid in major industrial corridors is well-engineered to support heavy manufacturing. Most facilities rely on dual-feed configurations from multiple substations to ensure reliable uptime for critical digital infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data center assets are strategically placed near Sk. Mujib Road and the Chittagong Port area. This placement provides immediate proximity to the country largest shipping and manufacturing firms, which are the primary consumers of local colocation services.
Regional Market Reach A presence in Chittagong effectively serves the entire southeastern region of Bangladesh. This market is vital for capturing data generated by the heavy industrial zones and the expanding trade volume passing through the Bay of Bengal.
Tax Advantage For Data Centers There are no specific tax incentives for the data center sector as of September 2025. Standard corporate tax structures and a 15% VAT apply to most digital infrastructure services in this market.
Natural Disaster Risk
Chittagong is classified as High (6.0/10.0) for natural disaster risk as of September 2025. Given its coastal and tectonic positioning, the following hazards are the most significant for infrastructure planning:
- River Flood (9.9): The most critical risk, requiring elevated equipment rooms and water mitigation systems.
- Earthquake (8.9): High seismic activity necessitates building to advanced structural standards.
- Coastal Flood (8.9): A direct result of the city low-lying coastal geography and seasonal weather patterns.
- Tsunami (8.1): A material risk for coastal facilities, though regional warning systems are in place.
- Tropical Cyclone (7.9): Frequent seasonal storms require reinforced building envelopes and redundant fuel supplies for generators.
