Data Centers in Dhaka

Dhaka – Emerging Digital Hub for South Asia

Dhaka is the primary data center market for Bangladesh, serving a rapidly digitizing economy of over 170 million people. For businesses targeting this population, Dhaka offers the lowest possible latency and direct access to a growing number of local and international networks. Colocation in Dhaka is essential for content delivery, financial services, and telecommunications companies that require high performance and reliability within the country's borders.

Dhaka: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As of September 2025, Dhaka's ecosystem includes over 15 network providers. Carrier-neutral facilities provide the primary interconnection points for enterprises connecting to local and regional carriers.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Dhaka as of September 2025. Businesses requiring dedicated cloud access must establish private network connections to major hubs like Mumbai or Singapore to reach the global cloud providers.

Internet Exchange Points (IXPs): The Bangladesh Internet Exchange (BDIX) is the central peering point in the market. It facilitates efficient local traffic exchange, which reduces latency and lowers transit costs for service providers and enterprises.

Bare Metal: Bare metal server options are available in Dhaka, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer solutions in the region.

Power Analysis

Average Cost Of Power: Industrial power in Dhaka is priced at approximately US$0.06/kWh as of September 2025. This highly competitive rate makes large-scale deployments more economically viable compared to many other regional markets.

Power Grid Reliability: The power grid in Dhaka can experience instability. However, modern data centers are engineered with significant redundancy, including multiple substations, extensive battery backup, and on-site generators to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Dhaka are strategically located to serve the city's primary commercial districts, including Gulshan, Motijheel, and Dhanmondi. This proximity provides low-latency connectivity for the financial, technology, and corporate sectors.

Regional Market Reach: Dhaka serves as the digital gateway to the entire nation of Bangladesh. Its infrastructure is critical for reaching one of the most populous countries in the world, providing a centralized point for content and application delivery.

Tax Advantage For Data Centers: There are no specific tax incentives for data center development or operation in Bangladesh. The standard corporate tax and a 15% Value Added Tax (VAT) on services apply, requiring careful financial planning for market entry.

Natural Disaster Risk

Dhaka 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 geography and infrastructure expose it to significant environmental threats that require careful facility selection and business continuity planning.

Key natural hazards include:

• River Flood: Score 9.9/10
• Earthquake: Score 8.9/10
• Tropical Cyclone: Score 7.9/10
• Epidemic: Score 7.0/10