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Data Centers in Khulna

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Khulna – A Strategic Hub for Southern Bangladesh

Khulna serves as a critical digital infrastructure location for southern Bangladesh. For businesses targeting this region, local colocation offers a vital performance advantage, reducing latency and improving service delivery to a significant economic and population center. The market is developing, providing foundational capacity for digital services.

Khulna: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood national and regional connectivity, with developing international links.
Direct Cloud On-Ramps0 – as of September 2025Access is via Dhaka or network providers offering private extension services.
Power CostUS$0.06/kWh (industrial)A competitive rate that helps manage operational expenditures for compute-heavy deployments.
Disaster RiskHigh (8.1/10)Significant exposure to natural hazards requires resilient data center design and planning.
Tax IncentivesNoBangladesh does not offer specific incentives for this sector.
Sales Tax15% VATStandard value-added tax applies to services, as of September 2025.

Network & Connectivity Ecosystem

Khulna's connectivity landscape is primarily focused on serving the national market, with growing capabilities.

Carrier Density & Carrier Neutrality: As a major city, Khulna has access to all national telecommunications providers. The single data center in the market operates with carrier-neutral principles, providing choice for interconnection.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Khulna as of September 2025. Businesses requiring dedicated cloud access connect via network extensions to hubs in Dhaka or rely on public internet transit.

Internet Exchange Points (IXPs): Peering is facilitated through the National Internet Exchange of Bangladesh (NIX) located in Dhaka. This centralizes traffic exchange, improving national network performance.

Bare Metal: Bare metal server options are available from local providers, offering dedicated compute resources for workloads that demand high performance and security without the overhead of virtualization.

Power Analysis

Average Cost Of Power: The industrial electricity rate is approximately US$0.06/kWh as of September 2025. This highly competitive price makes Khulna an attractive location for managing the costs of high-density computing infrastructure.

Power Grid Reliability: The power grid in Khulna, like other urban centers in Bangladesh, is developing. Data center facilities require robust backup systems, including UPS and on-site generators with significant fuel reserves, to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Khulna are positioned to serve the city's key industries, including jute, seafood processing, and manufacturing. Proximity enables low-latency connections for process automation and business systems.

Regional Market Reach: Khulna is the gateway to the Port of Mongla and the Sundarbans mangrove forest, a UNESCO World Heritage Site. The city serves as the primary commercial and communications hub for the entire Khulna Division and southwestern Bangladesh.

Tax Advantage For Data Centers: There are no specific tax incentives for data centers. The government's standard commercial and investment regulations apply.

Natural Disaster Risk

Khulna has a High risk profile for natural disasters, with an overall score of 8.1 out of 10 as of September 2025. The INFORM Risk model highlights significant exposure to several specific hazards.

Key risks include:

  • River Flood: 9.9/10
  • Coastal Flood: 8.9/10
  • Earthquake: 8.9/10
  • Tsunami: 8.1/10
  • Tropical Cyclone: 7.9/10

This environment demands that any data center infrastructure is built to high resiliency standards to mitigate the impact of these potential events.

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