Data Centers in Phnom Penh

Phnom Penh – Strategic Digital Hub for the Mekong Region

Executive Summary

Phnom Penh is the primary landing point for enterprises targeting the Mekong region's mobile-first economy and rapidly digitizing consumer base. It offers a critical foothold for organizations requiring domestic low-latency delivery while benefiting from aggressive government-backed investment incentives in one of Southeast Asia's fastest-growing markets.

Phnom Penh: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 10. The ecosystem features approximately 10–15 local and regional service providers as of September 2025. While some facilities are tied to specific telcos, the market is shifting toward neutral environments to support diverse peering requirements.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. There are currently no direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within the city as of September 2025. Connectivity to global platforms is typically managed via private network interfaces or high-capacity waves to Singapore and Bangkok.

Internet Exchange Points (IXPs): The Cambodia Networking Exchange (CNX) facilitates local traffic exchange, keeping domestic data within the country to improve performance as of September 2025.

Bare Metal: Dedicated physical hardware is available through regional providers such as Latitude.sh, supporting workloads that require high-performance compute without virtualization overhead as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at US$0.14/kWh as of September 2025. The energy mix consists of approximately 30% renewables and 70% fossil fuels. This pricing reflects the ongoing modernization of the national energy infrastructure and remains a key operational consideration for high-density deployments.

Power Grid Reliability: The electrical grid in Phnom Penh is engineered to support major commercial corridors. Data centers in this market typically utilize multi-substation support and site-specific redundancy to ensure uptime and mitigate risks associated with the developing national grid as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located near the Khan Daun Penh and Khan Toul Kork districts. These areas house the nation’s financial services, government offices, and tech startups, making physical proximity vital for low-latency synchronization as of September 2025.

Regional Market Reach: Phnom Penh is a central node for the Greater Mekong Subregion. It provides an effective base for serving over 16 million people domestically and acts as a secondary site for regional redundancy between Thailand and Vietnam as of September 2025.

Tax Advantage For Data Centers: Data center services are recognized as promoted activities, allowing qualified investors to benefit from significant corporate income tax exemptions. These incentives help offset initial capital expenditure and improve long-term profitability for infrastructure-heavy projects as of September 2025.

Natural Disaster Risk

Phnom Penh maintains a Moderate (4.5/10) risk profile as of September 2025. Infrastructure is primarily built to manage water-related variables, which represent the most significant environmental factors for site selection.

• River Flood (8.7/10): The most significant hazard; facilities are generally elevated or located in areas with managed drainage as of September 2025.
• Epidemic (6.1/10): Identified as a high-impact risk for operational continuity and workforce management as of September 2025.
• Drought (4.2/10): A moderate concern for long-term water cooling requirements and hydroelectric power stability.
• Tropical Cyclone (1.8/10): A minor risk, as the city is shielded from the direct force of most Pacific storms as of September 2025.
• Earthquake (0.1/10): Considered a negligible risk for structural integrity.