Data Centers in Phnom Penh

Phnom Penh – Emerging Digital Hub for Cambodia

Phnom Penh is the primary data center market in Cambodia, serving as the nation's key commercial and connectivity hub. For businesses targeting the Cambodian market, colocation in Phnom Penh provides the lowest latency access to local consumers and enterprises. The market is developing, offering foundational infrastructure for companies establishing a digital presence in this growing Southeast Asian economy.

Phnom Penh: At A Glance

Network & Connectivity Ecosystem

Phnom Penh's connectivity ecosystem is in a state of growth, centered around a handful of key facilities. While still maturing, it provides essential infrastructure for reaching the local market.

Carrier Density & Carrier Neutrality: The market features service from at least 7 providers as of September 2025. Carrier-neutral options are available, allowing for interconnection between local and regional networks.

Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers as of September 2025. Access to hyperscale clouds like AWS, Google Cloud, and Azure requires network connections to regional hubs such as Bangkok, Thailand, or Ho Chi Minh City, Vietnam. Private connectivity can be established via dedicated circuits.

Internet Exchange Points (IXPs): Public peering is limited within Phnom Penh. Most traffic is exchanged privately between carriers or routed through regional internet exchanges.

Bare Metal: Bare metal server options are available from local providers. For global platforms, customers often turn to providers with a presence in nearby regional markets like Singapore.

Power Analysis

Average Cost Of Power: Industrial electricity costs are approximately US$0.14/kWh as of 2022. This price point is higher than in other major Southeast Asian markets, representing a significant factor in total operating costs. The grid is primarily powered by fossil fuels (70%) with a growing renewable component (30%).

Power Grid Reliability: The power grid in Phnom Penh's commercial districts is stable, and data centers provide multi-layered redundancy with UPS systems and backup generators to ensure consistent uptime.

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 growing technology sector. This proximity ensures low-latency connectivity for critical business operations.

Regional Market Reach: While primarily focused on serving the domestic Cambodian market of over 16 million people, Phnom Penh acts as a digital entry point for businesses expanding into the Greater Mekong Subregion.

Tax Advantage For Data Centers: The Cambodian government offers significant tax incentives for data center operations. These benefits include tax holidays and exemptions on corporate income tax, directly reducing the financial burden for operators and their clients.

Natural Disaster Risk

Phnom Penh has a moderate natural disaster risk profile, with an INFORM Risk score of 4.5 out of 10 as of September 2025. The risk landscape requires careful facility selection and business continuity planning.

The most significant environmental threats include:

• River Flood: High risk (8.7/10) due to the city's location at the confluence of the Mekong, Tonlé Sap, and Bassac rivers.
• Drought: Moderate risk (4.2/10), which can impact water resources and agriculture.
• Coastal Flood: Moderate risk (3.8/10), affecting the broader national coastline.
• Tsunami: Low to moderate risk (2.8/10) for the country, though Phnom Penh's inland location mitigates direct impact.
• Tropical Cyclone: Low risk (1.8/10).
• Earthquake: Very low risk (0.1/10).