Data Centers in Khulna
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Khulna – Resilient Digital Access for Southwest Bangladesh
Khulna is an emerging data center market providing a crucial secondary location to Dhaka for businesses targeting southwestern Bangladesh. It offers a cost-effective operational base for companies prioritizing disaster recovery and reaching a significant regional population. This market is ideal for organizations in logistics, manufacturing, and regional services that require low-latency connectivity within the country's third-largest city.
Khulna: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing ecosystem with adequate national and regional connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Dhaka; access via private network extension. |
| Power Cost | $0.06/kWh – as of September 2025 | Highly competitive pricing for industrial power in the region. |
| Disaster Risk | High (6.0/10) – as of September 2025 | Significant exposure to flooding and seismic events requires careful facility selection. |
| Tax Incentives | No | No specific incentives are currently offered for data center operations. |
| Sales Tax | 15% VAT – as of September 2025 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Khulna’s connectivity ecosystem is developing, offering essential services for deploying digital infrastructure in southwestern Bangladesh. While not as dense as Dhaka, it provides sufficient options for most business continuity and regional service delivery needs.
Carrier Density & Carrier Neutrality The market has a focused carrier presence, with fewer than 10 providers available in the region as of September 2025. This requires careful planning for network redundancy, though carrier-neutral facilities are available.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Khulna as of September 2025, meaning there is no native access to any public cloud regions from local data centers. Businesses connect to cloud providers like AWS, Google Cloud, and Azure through private network links to the primary hub in Dhaka.
Internet Exchange Points (IXPs) Public peering is not established locally in Khulna. The majority of network peering is handled privately or routed through the National Internet Exchange of Bangladesh (NIX) in Dhaka, which is central to the country's internet traffic flow.
Bare Metal Bare metal server availability is present, allowing businesses to lease dedicated hardware. Providers like Hivelocity offer solutions that can be deployed in the broader region to serve local application needs.
Power Analysis
Khulna offers a very competitive power pricing environment, although grid stability must be managed with standard data center infrastructure.
Average Cost Of Power The average industrial electricity price is approximately $0.06/kWh as of September 2025. This low cost presents a significant operational advantage, reducing the total cost of ownership for compute-intensive workloads.
Power Grid Reliability The regional power grid is characteristic of an emerging market and can experience instability. Data centers in Khulna mitigate this with standard resiliency measures, including multiple on-site generators, battery backup (UPS) systems, and redundant power feeds to ensure uptime.
Market Access, Business & Tax Climate
Khulna provides strategic access to a key economic zone in Bangladesh, though the tax environment is standard without specific industry incentives.
Proximity To Key Business Districts Data centers in Khulna are positioned to serve the city's primary industries, including jute processing, shipbuilding, and seafood exporting. The city is a major river port, making it a critical hub for logistics and trade in the southwest.
Regional Market Reach From Khulna, businesses can effectively serve the entire southwestern region of Bangladesh, reaching millions of end-users. It also functions as a viable disaster recovery location for operations primarily based in Dhaka.
Tax Advantage For Data Centers The government does not offer specific tax incentives for data center development or operation. Businesses operate under the standard national corporate tax structure and a 15% Value Added Tax (VAT) on services.
Natural Disaster Risk
Khulna has a high-risk profile for natural disasters, with an overall INFORM Risk score of 6.0 out of 10 as of September 2025. The region's geography makes it particularly susceptible to water-related and seismic events.
Key natural hazards include:
- River Flood: 9.9/10
- Earthquake: 8.9/10
- Coastal Flood: 8.9/10
- Tsunami: 8.1/10
- Tropical Cyclone: 7.9/10
Facility selection and infrastructure design are critical to mitigate these significant environmental risks.
