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Data Centers in Khulna

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Khulna – Emerging Digital Hub for Southern Bangladesh

Khulna is an essential, emerging digital market for businesses targeting southern Bangladesh and the Bay of Bengal region. Its strategic location supports logistics, manufacturing, and agricultural sectors that require reliable local infrastructure to reduce latency and improve application performance for a growing user base.

Khulna: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBDeveloping international connectivity options suitable for regional workloads.
Direct Cloud On-Ramps0 – as of September 2025Access requires network extension to regional hubs like Dhaka or Singapore.
Power Cost$0.06/kWh – as of September 2025Very competitive industrial power rates support cost-effective operations.
Disaster RiskHigh (6.0/10) – as of September 2025Significant exposure to flooding and cyclones requires resilient facility design.
Tax IncentivesNoNo specific data center incentives are currently offered.
Sales Tax15% VAT – as of September 2025Standard national value-added tax applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As an emerging market, Khulna has a focused carrier presence, with fewer than 10 major providers active as of September 2025. Access to the primary national and international carriers is typically managed through facilities in Dhaka.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Khulna as of September 2025, with 0 cloud regions accessible directly. Establishing secure, low-latency connections to major cloud providers requires extending the network via private lines or wave services to the nearest access points, most often in Dhaka or Singapore.

Internet Exchange Points (IXPs): Public peering is limited in Khulna. Most network interconnection occurs privately or is routed through the National Internet Exchange of Bangladesh (NIX) in Dhaka, which is central to the country's traffic exchange.

Bare Metal: Bare metal server availability is emerging in the region. Providers like Hivelocity offer solutions that can serve deployments in Bangladesh, often provisioned from nearby data centers in Singapore or India to balance cost and performance.

Power Analysis

Average Cost Of Power: The industrial electricity rate in Khulna is approximately $0.06/kWh as of September 2025. This highly competitive pricing makes it one of the more affordable locations in South Asia for power-intensive computing operations.

Power Grid Reliability: The power grid is developing. While the national energy mix is dominated by natural gas and coal, data center operators must invest heavily in on-site power redundancy, including generators and UPS systems, to guarantee uptime and meet service-level agreements.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Khulna's data centers serve the city's significant port, jute, and seafood processing industries. Proximity to these economic centers is critical for supply chain management, industrial IoT, and logistics applications that cannot tolerate high latency.

Regional Market Reach: The city is a strategic gateway to the entire Khulna Division and the Port of Mongla, Bangladesh's second-busiest seaport. Digital infrastructure here effectively serves millions of consumers and businesses throughout the country's southwest coastal region.

Tax Advantage For Data Centers: Bangladesh offers no specific tax incentives for data center development or operation. The standard corporate tax rates and a 15% Value Added Tax (VAT) apply, making a clear financial and operational case essential for investment.

Natural Disaster Risk

Khulna faces a High natural disaster risk, with an INFORM Risk score of 6.0 out of 10 as of September 2025. The risk profile is driven by significant exposure to weather-related and geological events.

Key natural hazards include:

  • River Flood: Extremely high risk (9.9/10) due to its location in the Ganges Delta.
  • Earthquake: High risk (8.9/10) from regional seismic activity.
  • Coastal Flood: High risk (8.9/10) from storm surges.
  • Tsunami: High risk (8.1/10) due to proximity to the Bay of Bengal.
  • Tropical Cyclone: High risk (7.9/10) during the monsoon season.
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