Data Centers in Noakhali
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Noakhali – Emerging Digital Hub in Coastal Bangladesh
Noakhali is an emerging market for digital infrastructure, positioned to serve the growing economic activity in southern Bangladesh. For businesses targeting this coastal region, establishing a local data center presence can significantly improve application performance and service delivery to a large, underserved population. This move secures a tactical advantage in a developing area.
Noakhali: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects a developing but capable network infrastructure. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are in India; access requires network extensions. |
| Power Cost | US$0.06/kWh (industrial) | A competitive rate that helps manage operational expenditures for compute-intensive workloads. |
| Disaster Risk | High (INFORM Risk: 6/10) | Elevated risk profile requires resilient data center design and disaster recovery planning. |
| Tax Incentives | No | No specific incentives are available for the data center sector. |
| Sales Tax | 15% VAT | Standard national value-added tax applies to services, as of September 2025. |
Network & Connectivity Ecosystem
Digital infrastructure in Noakhali is foundational, providing essential connectivity for the region. While not a primary interconnection hub, the market offers access to national carriers, supporting local business operations and content delivery.
Carrier Density & Carrier Neutrality: As a regional market, Noakhali provides access to a focused group of national and local carriers. While specific data center carrier lists are not published, the environment supports connections to major Bangladeshi networks, as of September 2025.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Noakhali, as of September 2025. Businesses require private network extensions or IP transit to connect to cloud provider points of presence, with the nearest major hubs located in Indian cities like Kolkata or Mumbai.
Internet Exchange Points (IXPs): Public peering is not established directly within Noakhali. Peering is typically handled through private arrangements or routed through national internet exchanges located in Dhaka.
Bare Metal: Bare metal server availability is limited in Noakhali itself. Regional deployments can be sourced from providers with a presence in South Asia, such as Hivelocity, offering dedicated compute resources from nearby data center markets.
Power Analysis
Average Cost Of Power: Industrial electricity is priced at approximately US$0.06 per kWh, as of September 2025. This highly competitive rate makes the region financially attractive for running power-dense infrastructure, helping to lower overall operational costs.
Power Grid Reliability: The national power grid is primarily dependent on natural gas and fossil fuels. In Noakhali, as in other regional cities, the grid can experience fluctuations. Data centers must incorporate robust backup systems, including multi-megawatt generators and extensive UPS capacity, to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Noakhali would be strategically located to support local government, agriculture, and aquaculture industries, which are central to the regional economy. Proximity reduces latency for local processing and data access.
Regional Market Reach: Noakhali serves as a digital gateway to the coastal districts of southern Bangladesh, a densely populated area. Deploying infrastructure here allows services to reach millions of end-users with improved speed and reliability.
Tax Advantage For Data Centers: Bangladesh does not offer specific tax incentives for the data center industry. The primary financial advantage comes from competitive operational costs, such as power, rather than fiscal policy.
Natural Disaster Risk
Noakhali has a high-risk profile for natural disasters, with an INFORM Risk score of 6 out of 10, as of September 2025. The geography of the region makes it particularly susceptible to climate- and weather-related events.
Key risks include:
- River Flood: Score of 9.9/10, indicating an extremely high probability and impact.
- Earthquake: Score of 8.9/10, reflecting significant seismic risk.
- Coastal Flood: Score of 8.9/10, a major threat due to its low-lying coastal location.
- Tsunami: Score of 8.1/10, posing a considerable risk to the coastline.
- Tropical Cyclone: Score of 7.9/10, with frequent and severe storms affecting the region.
Any data center deployment in Noakhali must be engineered to withstand these specific threats to ensure operational continuity.
