Data Centers in Brunei
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Brunei – Stable Gateway for Southeast Asian Digital Services
Brunei presents a unique, emerging data center market characterized by its political stability and low natural disaster risk. It is best suited for organizations requiring a secure secondary or disaster recovery site in Southeast Asia that can serve the Borneo region and surrounding maritime areas. The market's primary advantage lies in its stable operating environment, which supports resilient infrastructure deployments.
Brunei: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Stable but developing international connectivity options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hub is Singapore; access via private network extensions. |
| Power Cost | Est. B$0.09-0.12/kWh | Price is estimated; grid is ~99% powered by natural gas. |
| Disaster Risk | Low (2.3/10) – as of September 2025 | Very low exposure to significant seismic and cyclone activity. |
| Tax Incentives | Yes | DC-specific exemptions for renewable energy use and export services. |
| Sales Tax | Not applicable – as of September 2025 | Brunei does not currently levy a VAT or GST. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market is served by a focused group of providers, with at least one carrier-neutral facility available to enable interconnection. While carrier density is not extensive, core connectivity is sufficient for most business operations as of September 2025.
Direct Cloud On-Ramps: There are no public cloud on-ramps located within Brunei as of September 2025. Businesses connect to hyperscale cloud providers like AWS, Google Cloud, and Microsoft Azure through the nearest major interconnection hub, Singapore, using private network links or submarine cable capacity.
Internet Exchange Points (IXPs): Public peering is limited within Brunei. Most traffic exchange is handled through private peering arrangements directly between service providers or routed via regional hubs like Singapore.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for workloads requiring high performance and security. Providers like Hivelocity can serve regional needs.
Power Analysis
Average Cost Of Power: The estimated industrial power cost ranges from B$0.09 to B$0.12/kWh as of September 2025. With a grid powered almost entirely by abundant local natural gas, Brunei offers predictable and stable energy pricing, which is a significant advantage for long-term operational cost planning.
Power Grid Reliability: The national power grid is reliable, particularly in the areas designated for industrial and commercial development. Infrastructure supporting data centers typically benefits from well-maintained and stable power delivery, suitable for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Brunei are strategically located to serve the capital, Bandar Seri Begawan, and the country's oil and gas industry. This proximity ensures low-latency connectivity for government, financial services, and energy sector clients.
Regional Market Reach: While a small domestic market, Brunei serves as an excellent digital hub for the island of Borneo, including parts of Malaysia and Indonesia. Its stable environment also makes it a viable disaster recovery location for businesses operating out of larger, more congested ASEAN markets.
Tax Advantage For Data Centers: Brunei offers compelling financial incentives for data center operators. The government provides a 10-year tax exemption for developments using renewable energy and for data export services, directly lowering operational costs and encouraging green IT investment.
Natural Disaster Risk
Brunei has a low natural disaster risk profile, with an INFORM Risk score of 2.3 out of 10 as of September 2025. This stability is a key advantage for data center uptime and hardware longevity.
The primary environmental risks to consider include:
- River Flood: The most significant natural hazard, with a risk score of 4.8.
- Coastal Flood: A moderate risk factor at 3.3.
- Drought: A consideration with a score of 2.6.
- Tsunami: A lower probability risk at 1.9.
Risks from earthquakes (0.1) and tropical cyclones (0) are negligible, making Brunei one of the safest locations in the region from a geological and meteorological standpoint.
