Data Centers in Noakhali
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Noakhali – Emerging Digital Hub for Southern Bangladesh
Noakhali is establishing itself as a secondary digital market within Bangladesh, offering a strategic location for disaster recovery and localized application delivery. For businesses targeting the Chattogram Division, deploying infrastructure here reduces latency and improves service availability for a significant regional population.
Noakhali: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects developing national infrastructure with reliable core routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Dhaka. |
| Power Cost | US$0.06/kWh (industrial) | A competitive rate supported by a gas-heavy generation mix. |
| Disaster Risk | High (6.0/10) | Significant exposure to flooding, cyclones, and seismic activity. |
| Tax Incentives | No | No specific incentives for data center development exist. |
| Sales Tax | 15% VAT – as of September 2025 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Noakhali's connectivity landscape is characteristic of an emerging market, with foundational infrastructure in place and growing capacity.
Carrier Density & Carrier Neutrality: As of September 2025, the market is served by a focused group of national and regional carriers. While a fully carrier-neutral ecosystem is still developing, enterprises can secure redundant connectivity through major providers operating in the region.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Noakhali, as of September 2025. Businesses require private network connections or wave services to connect to cloud provider fabrics in the primary hub of Dhaka.
Internet Exchange Points (IXPs): Public peering is limited within Noakhali itself. Most network traffic is exchanged through private peering arrangements or routed via national IXPs located in Dhaka, which serves as the country's central interconnection point.
Bare Metal: Bare metal server availability is present, allowing businesses to deploy dedicated compute without capital expenditure. Providers like Hivelocity and phoenixNAP can serve the region through regional deployments and partnerships.
Power Analysis
Average Cost Of Power: Industrial power costs in Noakhali are approximately US$0.06/kWh, as of September 2025. This competitive pricing makes high-density deployments more economically feasible compared to other regional markets.
Power Grid Reliability: The national grid relies heavily on natural gas (57%), with significant contributions from coal and other fossil fuels. While the government is investing in grid stability, data centers in the region require robust UPS systems and backup generation to ensure consistent uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Noakhali provides digital infrastructure access for the agricultural, trade, and educational sectors of southern Bangladesh. Its location is strategic for serving the greater Chattogram Division, including Feni and Lakshmipur districts.
Regional Market Reach: The market serves as a crucial digital access point for millions in the coastal and southern regions of Bangladesh. It offers a viable alternative to Dhaka for content delivery and disaster recovery, reducing latency for end-users outside the capital.
Tax Advantage For Data Centers: Bangladesh currently offers no specific tax incentives for the development or operation of data centers. All services are subject to the standard 15% Value Added Tax (VAT), as of September 2025.
Natural Disaster Risk
Noakhali faces a High risk profile, with an INFORM Risk score of 6.0 out of 10, as of September 2025. The region's geography and climate expose it to significant natural hazards that require careful infrastructure planning and mitigation.
Key risks include:
- River Flood: Extremely high risk (9.9/10)
- Earthquake: Very high risk (8.9/10)
- Coastal Flood: Very high risk (8.9/10)
- Tsunami: High risk (8.1/10)
- Tropical Cyclone: High risk (7.9/10)
