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Data Centers in Phnom Penh

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Phnom Penh – Emerging Hub for the Mekong Region

Executive Summary

Phnom Penh is the primary data center market for businesses requiring a direct digital presence within Cambodia. This emerging location is ideal for content delivery networks, financial services, and enterprises focused on capturing the country's fast-growing digital consumer base. Establishing infrastructure here is key to delivering low-latency, reliable services to the local population of nearly 17 million people.

Phnom Penh: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBDeveloping international connectivity suitable for serving the domestic market.
Direct Cloud On-Ramps0 – as of September 2025Access is via private network extension to regional hubs like Bangkok or Singapore.
Power CostUS$0.14/kWh (as of 2022)Higher than some regional neighbors, impacting operational expenditure.
Disaster RiskModerate (4.5/10)Dominated by significant river flood risk; seismic activity is very low.
Tax IncentivesYesData center services are a promoted activity eligible for corporate tax holidays.
Sales Tax10% VAT (as of 2024)Standard value-added tax applies to services.

Network & Connectivity Ecosystem

Phnom Penh's connectivity landscape is developing, centered around a handful of local and regional providers. While still maturing, the infrastructure is sufficient for in-country service delivery.

Carrier Density & Carrier Neutrality: The market features at least 7 data center facilities as of September 2025. This provides a foundational level of choice for colocation, with a growing list of service providers offering connectivity solutions.

Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major hyperscalers. Secure, private connections to cloud providers must be established via dedicated links to major regional hubs such as Bangkok or Singapore.

Internet Exchange Points (IXPs): Public peering is limited. Most traffic exchange occurs through private peering arrangements within local data centers or is routed through major regional exchanges in Singapore.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for workloads that require high performance and security without virtualization overhead. Providers like Hivelocity offer deployment capabilities in the region.

Power Analysis

Average Cost Of Power: The industrial power cost in Phnom Penh stands at approximately US$0.14/kWh as of 2022. This rate is higher than in other Southeast Asian markets, making power a significant factor in total cost of ownership calculations. The grid mix is primarily fossil fuels (70%) with a growing renewables component (30%).

Power Grid Reliability: The power grid in the capital is improving but can experience instability. For this reason, all credible data centers in Phnom Penh are built with significant power redundancy, including multiple utility feeds where possible, block-redundant UPS systems, and on-site generators with extensive fuel storage.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Phnom Penh are strategically located to serve the city's central business district, financial institutions, and burgeoning tech scene. This proximity ensures minimal latency for critical applications supporting the local economy.

Regional Market Reach: While primarily serving Cambodia, Phnom Penh acts as a digital entry point into the Greater Mekong Subregion. It provides a strategic foothold for companies looking to expand their services into neighboring Laos and Vietnam.

Tax Advantage For Data Centers: Cambodia actively encourages investment in digital infrastructure through significant tax incentives. Data center operations are classified as a promoted activity, making them eligible for corporate income tax exemptions or a tax holiday, which substantially 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 environmental threat is seasonal flooding, while seismic risk is negligible.

Key natural hazards include:

  • River Flood: This is the most significant risk, with a score of 8.7. Phnom Penh's location on the Mekong River makes it susceptible to seasonal flooding, requiring careful site selection and facility hardening.
  • Drought: A moderate risk (4.2), this can impact water resources and agriculture but has a lower direct impact on secured data center operations.
  • Coastal Flood: The country faces a moderate coastal flood risk (3.8), though this is not a direct threat to the inland capital city of Phnom Penh.
  • Tropical Cyclone: A low risk (1.8), with storms typically weakening before they reach the city.
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