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Data Centers in Cambodia

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Cambodia – Emerging Digital Hub for Southeast Asia

Executive Summary

Cambodia is a developing market suited for businesses establishing a foundational digital presence in the Greater Mekong Subregion. While direct connectivity is still maturing, the country offers significant cost advantages and government support for technology investment. Locating here provides a strategic foothold for serving the growing digital economies of Southeast Asia.

Cambodia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBDeveloping infrastructure with improving international links.
Direct Cloud On-Ramps0 – as of September 2025Closest major cloud hubs are in Bangkok and Singapore.
Power CostUS$0.14/kWh – as of 2022Higher than regional averages, reflecting reliance on fossil fuels.
Disaster RiskModerate (4.5/10) – as of September 2025Primarily exposed to weather-related events like flooding.
Tax IncentivesYesData center services are eligible for corporate income tax holidays.
Sales Tax10% VAT – as of September 2025Standard value-added tax applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Cambodia's connectivity landscape includes approximately 5-10 carriers, with 7 data centers reported as of September 2025. The market is still developing, with most facilities being single-provider rather than fully carrier-neutral.

Direct Cloud On-Ramps: There are no direct, in-country cloud on-ramps from major providers as of September 2025. Businesses require private network extensions or IP transit to connect to cloud regions in nearby hubs like Bangkok, Thailand or Singapore.

Internet Exchange Points (IXPs): The Cambodia IX (CIX) is the primary local peering point, facilitating traffic exchange between domestic internet service providers. For broader regional peering, connections are typically routed through Singapore or Hong Kong.

Bare Metal: Bare metal server availability is emerging. Providers like Hivelocity can offer dedicated server solutions in the region, typically provisioned from nearby data centers in Singapore to serve Cambodian users.

Power Analysis

Average Cost Of Power: The industrial electricity rate is approximately US$0.14/kWh, as of 2022. This price is among the highest in the region, which can be a significant factor in total operating costs for power-intensive deployments. The energy mix is dominated by fossil fuels (70%), with renewables contributing the remaining 30%.

Power Grid Reliability: The grid infrastructure is improving, particularly in the capital, Phnom Penh. However, outside of primary business districts, reliability can be inconsistent. Data centers require robust backup systems with multiple generators and extensive fuel storage to guarantee uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located in and around Phnom Penh, the nation's economic center. This provides low-latency connectivity for the financial services, telecommunications, and manufacturing sectors concentrated in the capital.

Regional Market Reach: Cambodia offers a strategic position for reaching the 70 million people in the Greater Mekong Subregion, including Thailand, Vietnam, and Laos. It serves as a foundational market for companies expanding their digital services into these developing economies.

Tax Advantage For Data Centers: The government actively encourages technology investment through tax incentives. Data center services are classified as a promoted activity, making operators eligible for significant corporate income tax exemptions or holidays, which lowers the financial barrier to entry.

Natural Disaster Risk

Cambodia has a moderate overall disaster risk profile, with an INFORM Risk score of 4.5 out of 10, as of September 2025. The primary threats are climate and weather-related, with minimal seismic risk.

Key natural hazards include:

  • River Flood: 8.7/10
  • Drought: 4.2/10
  • Coastal Flood: 3.8/10
  • Tsunami: 2.8/10
  • Tropical Cyclone: 1.8/10
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