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Data Centers in Dhaka

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Dhaka – Digital Gateway to a 170 Million Person Economy

Executive Summary

Dhaka is the essential hub for serving one of the most densely populated, mobile-first markets on the planet. For infrastructure leaders, this metro provides the direct access needed to reach an expanding economy where local data residency is critical for both compliance and performance. Choosing colocation here ensures you are at the core of the national financial and industrial engines.

Dhaka: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong local peering and rising subsea capacity.
Direct Cloud On-Ramps0 – as of September 2025Nearest major hub cities are Singapore or Mumbai.
Power CostUS$0.06/kWh – as of September 2025Highly competitive industrial rates for the region.
Disaster RiskHigh (6.0/10) – as of September 2025Flooding and seismic risks require hardened sites.
Tax IncentivesNo – as of September 2025Standard commercial guidelines apply without incentives.
Sales Tax15% VAT – as of September 2025Standard national rate for digital services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 15. Dhaka maintains a concentrated ecosystem of local and international carriers as of September 2025. While many facilities facilitate peering, the market is shifting toward neutral interconnection models to handle rising traffic volumes.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. There are currently no physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within the metro. Enterprises typically use private transport or peering via Singapore to reach these hyperscale environments.

Internet Exchange Points (IXPs): The Bangladesh Internet Exchange (BDIX) is the critical local hub, facilitating efficient domestic traffic routing as of September 2025. This reduces the need for expensive international transit for local requests.

Bare Metal: High-performance compute is available through local providers and global entities such as Hivelocity, allowing for rapid deployment without significant capital expenditure as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity is US$0.06/kWh as of September 2025. The generation mix includes Gas 57%, Coal 19%, and various fossil fuels 15%. These costs are some of the lowest in Asia, offering a significant operational advantage for high-density compute.

Power Grid Reliability: Infrastructure in major business corridors like Gulshan is supported by multi-substation feeds. Modern data centers in the region use redundant configurations to maintain high uptime despite national grid challenges as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near Gulshan Avenue and Motijheel. This is critical for the banking, garment, and technology sectors that require sub-millisecond access to their core processing environments.

Regional Market Reach: Dhaka is the central node for a population of 170 million people. Serving content from this metro ensures a superior user experience across the country and provides a base for expansion into the wider South Asian region.

Tax Advantage For Data Centers: There are no specific tax incentives for data center operations as of September 2025. Businesses prioritize the market for its competitive power pricing and the necessity of managing data locally for performance.

Natural Disaster Risk

The overall risk for Dhaka is categorized as High (6.0/10) as of September 2025. Infrastructure must be engineered to withstand frequent environmental challenges specific to the Bengal Basin.

  • River Flood: 9.9/10 (High). Low-lying geography makes aggressive flood mitigation a primary facility requirement.
  • Earthquake: 8.9/10 (High). Seismic activity necessitates strict adherence to modern structural codes and resilient construction.
  • Coastal Flood: 8.9/10 (High). Regional exposure requires site selection at elevated grade; this is a regional concern for the metro.
  • Tsunami: 8.1/10 (High). While Dhaka is inland, regional risk is high; this is an indirect concern for national infrastructure.
  • Tropical Cyclone: 7.9/10 (High). Seasonal storms are managed through hardened facility exteriors and reliable roofing systems.
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