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Data Centers in Kolkata

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Kolkata – Digital Gateway to Eastern India

Executive Summary

Kolkata is the primary interconnection hub for enterprises targeting the 300 million consumers across Eastern India and neighboring South Asian markets. It provides a cost-effective, high-availability base for deployments that require local proximity to avoid the latency of distant Mumbai or Chennai hubs. This market delivers a mature infrastructure that balances regional dominance with stable operations for high-stakes digital trade.

Kolkata: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAHigh carrier density and strategic subsea cable proximity.
Direct Cloud On-RampsOver 1 – as of January 2026Direct local entry available for AWS.
Power Cost$0.07/kWh – as of January 2026Competitive industrial rates with a fossil-heavy mix.
Disaster RiskHigh (5.5/10) – as of January 2026High risk score driven by deltaic geography and flooding.
Tax IncentivesNo – as of January 2026No specific data center incentive programs available.
Sales TaxGST 18% – as of January 2026Standard national goods and services tax applies.

Network & Connectivity Ecosystem

Kolkata serves as the central interconnection point for traffic moving between Northern India and the Bay of Bengal. As of January 2026, the ecosystem supports diverse regional and international requirements.

Carrier Density & Carrier Neutrality: Carrier count: over 6. The market features ~10–15 unique providers as of January 2026, including major national telcos and international transit providers. Most facilities operate with high neutrality, allowing for competitive pricing and diverse pathing.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions. Local infrastructure provides direct, low-latency entry points to AWS as of January 2026. This removes the need to backhaul traffic to distant hubs for core compute tasks.

Internet Exchange Points (IXPs): The National Internet Exchange of India (NIXI) maintains a significant presence, facilitating efficient local peering and keeping domestic traffic within the regional network.

Bare Metal: High-performance compute options are available through global providers such as Hivelocity and Latitude.sh as of January 2026. These services allow for rapid scaling without the capital expenditure of traditional colocation.

Power Analysis

Kolkata provides a stable power environment for high-density deployments, though the generation mix remains traditional.

Average Cost Of Power: Industrial electricity is approximately $0.07/kWh as of January 2026. These rates are globally competitive, providing a cost-effective foundation for large-scale data processing and storage.

Power Grid Reliability: The local grid is supported by multi-substation redundancy in major IT corridors like Salt Lake and New Town. Transmission infrastructure is well-engineered to manage high demand from the industrial and commercial base.

Market Access, Business & Tax Climate

The business environment in Kolkata is centered on its role as the financial capital of East India.

Proximity To Key Business Districts: Data centers are located near Bidhannagar (Salt Lake Sector V) and New Town. These districts house the majority of the region’s IT and financial services firms, ensuring minimal latency for corporate headquarters and operational centers.

Regional Market Reach: A presence in Kolkata effectively serves a combined population of over 300 million people across East India and provides a gateway for digital trade with Bangladesh and Bhutan.

Tax Advantage For Data Centers: No specific tax breaks currently exist for data centers in this market. Businesses operate under standard national fiscal policies. This lack of specific incentives is offset by competitive operational costs and a large regional talent pool.

Natural Disaster Risk

Kolkata has an overall risk profile of High (5.5/10) as of January 2026. Facilities here are built to mitigate environmental threats specific to a deltaic geography.

  • River Flood (9.2/10): This is the primary risk due to the Hooghly River and seasonal monsoon cycles as of January 2026.
  • Earthquake (8.3/10): The region sits in a seismically active zone requiring resilient building standards as of January 2026.
  • Tsunami (7.8/10): This is a regional risk; for inland Kolkata facilities, this is an indirect threat related to broader coastal surges as of January 2026.
  • Coastal Flood (7.8/10): Primarily impacts southern districts; urban facilities use elevated platforms to manage this risk as of January 2026.
  • Tropical Cyclone (7.7/10): Frequent seasonal storms require reliable backup power and wind-resistant structural design as of January 2026.
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