Data Centers in Chittagong
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Chittagong – Bangladesh's Strategic Port Hub
Executive Summary
Chittagong is the primary digital infrastructure hub for companies targeting Bangladesh's second-largest city and its critical port operations. For businesses in logistics, manufacturing, and financial services, colocation here provides the lowest possible latency to a significant economic center, which is essential for application performance and user experience. This strategic presence is key to capturing market share in a rapidly digitizing economy.
Chittagong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Represents developing connectivity; not yet a major international peering hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to major regional hubs like Mumbai or Singapore. |
| Power Cost | $0.06/kWh – as of September 2025 | Very competitive pricing compared to other hubs in the APAC region. |
| Disaster Risk | High (6.0/10) – as of September 2025 | Significant exposure to flooding, cyclones, and seismic activity requires careful facility selection. |
| Tax Incentives | No | No specific incentives for data center operations are currently offered. |
| 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, the market features at least one carrier-neutral data center, providing access to major national telecom providers and a selection of regional carriers. The ecosystem is developing, driven by demand from the city's commercial and industrial base.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Chittagong, as of September 2025. Secure, private connectivity to major cloud providers is achieved through network extensions and private line services to regional hubs like Mumbai and Singapore.
Internet Exchange Points (IXPs): Most internet peering in Bangladesh is centralized at the Bangladesh Internet Exchange (BDIX) in Dhaka. Facilities in Chittagong connect to this national peering point to optimize traffic exchange within the country.
Bare Metal: Bare metal server availability is emerging in Bangladesh. On-demand compute is typically deployed by providers such as Hivelocity that can provision dedicated servers into key regional markets.
Power Analysis
Average Cost Of Power: Industrial power costs are approximately $0.06/kWh, as of September 2025. This highly competitive rate is significantly lower than major APAC hubs, directly reducing operational expenditures for power-dense deployments.
Power Grid Reliability: While the national grid can face challenges, modern data centers in Chittagong are engineered to mitigate this risk. Facilities feature N+1 or greater power redundancy, including multiple utility feeds, on-site diesel generators, and extensive UPS systems to ensure uptime for critical loads.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chittagong provide direct, low-latency connectivity to the city's port, the busiest in the Bay of Bengal, as well as its Export Processing Zones (EPZs) and financial centers. This proximity is critical for logistics, trade, and manufacturing operations.
Regional Market Reach: Chittagong is the commercial capital of Bangladesh, serving a metropolitan population of over 5 million and acting as the primary gateway for the entire country's 170 million people. Its port provides a logistical entry point for goods and data serving the wider region.
Tax Advantage For Data Centers: Bangladesh does not currently offer specific tax incentives for data center investment or operation. The primary financial advantage comes from the market's competitive operational costs, particularly for power and local talent, rather than direct tax relief.
Natural Disaster Risk
Chittagong has a High disaster risk profile, with an overall score of 6.0 out of 10, as of September 2025. The geography exposes digital infrastructure to several significant natural hazards that demand careful site selection and resilient facility design.
Key environmental risks include:
- River Flood: Extremely high risk (9.9/10)
- Earthquake: High risk (8.9/10)
- Coastal Flood: High risk (8.9/10)
- Tsunami: High risk (8.1/10)
- Tropical Cyclone: High risk (7.9/10)
