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Cambodia – Gateway to the Mekong Digital Economy

Executive Summary

Cambodia is the specific entry point for businesses scaling into the high-growth Mekong region. Its digital infrastructure provides the low-latency foundation required for localized finance and content delivery, making it a reliable choice for regional expansion.

Cambodia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional performance for Mekong connectivity.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are Bangkok and Singapore.
Power CostUS$0.14/kWh – as of September 2025Mixed grid with 30% renewable sources.
Disaster RiskModerate (4.5/10) – as of September 2025River flooding remains the primary concern.
Tax IncentivesYesPromoted activities include data center services.
Sales Tax10% VAT – as of September 2025Standard value added tax rate applies.

Network & Connectivity Ecosystem

Cambodia functions as an important link for regional traffic between Thailand and Vietnam. While the market is still maturing, it offers reliable connectivity for localized requirements.

Carrier Density & Carrier Neutrality: Carrier count: over 10 – as of September 2025. Most major facilities in Phnom Penh offer access to a mix of state-owned and private fiber providers, ensuring competitive transit options.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions – as of September 2025. Local enterprises typically utilize private network interconnects or leased lines to reach the nearest major cloud clusters in Bangkok.

Internet Exchange Points (IXPs): The Cambodia Networking Exchange (CNX) serves as the central hub for local peering, reducing latency for domestic traffic as of September 2025.

Bare Metal: General availability is confirmed through regional providers like Hivelocity or Latitude.sh, supporting flexible infrastructure deployments.

Power Analysis

Power availability is expanding to meet the needs of the growing digital sector, with a focus on diversifying the energy mix.

Average Cost Of Power: Industrial electricity is priced at US$0.14/kWh as of September 2025. This rate is higher than some regional neighbors, reflecting the ongoing investment in grid stability and modernization.

Power Grid Reliability: Major data center corridors in Phnom Penh benefit from well-engineered infrastructure and redundant paths from multiple substations.

Market Access, Business & Tax Climate

The Cambodian government has prioritized digital transformation, creating a favorable environment for infrastructure investment.

Proximity To Key Business Districts: Facilities are located near the financial and administrative centers of Khan Toul Kork and Khan Daun Penh, providing low-latency access for the banking and logistics sectors.

Regional Market Reach: Cambodia serves as a natural bridge for the Mekong region, effectively reaching over 15 million people domestically and providing an edge for cross-border trade with Thailand and Vietnam.

Tax Advantage For Data Centers: Promoted activities including data center services qualify for significant corporate tax holidays. These incentives provide a clear path for reducing initial investment friction and long-term tax liabilities.

Natural Disaster Risk

Cambodia faces a Moderate (4.5/10) natural disaster risk as of September 2025. Operational resilience planning should prioritize water management and epidemic readiness.

  • River Flood (8.7): High risk. Infrastructure in Phnom Penh requires specific elevation and drainage management.
  • Epidemic (6.1): Moderate risk. Business continuity plans should include remote management capabilities.
  • Drought (4.2): Moderate risk. Limited impact on data center cooling but relevant for national grid stability.
  • Coastal Flood (3.8): Moderate risk. This is an indirect or regional concern for facilities located in the capital.
  • Tropical Cyclone (1.8): Low risk. Severe wind events are relatively infrequent compared to the broader region.
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