Data Centers in Gadong
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Gadong – Stable Digital Infrastructure in Brunei
Gadong offers a focused, stable environment for businesses requiring a digital presence within Brunei Darussalam. This market is ideal for organizations prioritizing sovereign data hosting and reliable local connectivity to serve the nation's primary economic and government centers. Brunei's infrastructure provides a secure operational base with minimal environmental risk.
Gadong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Stable but developing connectivity, primarily for in-country services. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Singapore; access via private network extensions. |
| Power Cost | BND$0.07 – $0.12/kWh | Favorable industrial rates due to abundant local natural gas resources. |
| Disaster Risk | Low (2.3/10) – as of September 2025 | Minimal exposure to significant natural disasters, ensuring high uptime. |
| Tax Incentives | Yes | Includes a 10-year exemption for renewable DC development and no personal income tax. |
| Sales Tax | No VAT/GST – as of September 2025 | Simplifies procurement and reduces operational overhead for businesses. |
Network & Connectivity Ecosystem
Brunei's connectivity is concentrated, providing reliable service for local operations. The ecosystem is sufficient for businesses focused on the domestic market rather than regional or global content delivery.
Carrier Density & Carrier Neutrality: Carrier options are limited, with services centered around a single primary provider as of September 2025. This ensures straightforward network management but offers less diversity than larger markets.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Brunei. Businesses connect to hyperscale cloud providers by establishing private network links to regional hubs, most commonly Singapore.
Internet Exchange Points (IXPs): Public peering is limited. Traffic exchange is typically handled through private arrangements with the incumbent local telecommunications provider.
Bare Metal: Bare metal server availability is not widespread. Companies requiring dedicated hardware typically colocate their own equipment or work with providers like Hivelocity for managed deployments in the region.
Power Analysis
Brunei's power infrastructure is a key strength, built upon the nation's significant energy reserves.
Average Cost Of Power: Industrial electricity is priced competitively, estimated between BND$0.07 and BND$0.12 per kWh as of September 2025. This cost advantage is driven by a grid powered almost entirely by natural gas (~99%), providing price stability and predictability for operational budgets.
Power Grid Reliability: The national power grid is reliable and well-maintained. Data center facilities are supported by redundant power feeds, ensuring consistent and dependable energy for mission-critical operations.
Market Access, Business & Tax Climate
Brunei offers a straightforward and stable business environment, particularly for companies engaged in the local digital economy.
Proximity To Key Business Districts: The data center market in Gadong is strategically located to serve Brunei's main commercial and administrative hub, Bandar Seri Begawan. This proximity provides low-latency connectivity to financial institutions, government agencies, and corporate headquarters.
Regional Market Reach: The infrastructure is optimized to serve the population and businesses within Brunei Darussalam. It is not positioned as a hub for reaching broader Southeast Asian markets.
Tax Advantage For Data Centers: Brunei provides significant financial incentives for data center operators. A specific 10-year tax exemption is available for data center development utilizing renewable energy, directly reducing long-term operational costs.
Natural Disaster Risk
Brunei has a very low natural disaster risk profile, with an INFORM Risk score of 2.3 out of 10 as of September 2025. This environmental stability is a critical advantage for ensuring service continuity and protecting physical assets.
The most notable environmental risks include:
- River Flood: 4.8
- Coastal Flood: 3.3
- Drought: 2.6
- Tsunami: 1.9
Risks from earthquakes and tropical cyclones are negligible, making Brunei one of the most physically secure locations for data center operations in the region.
