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Data Centers in Kolkata

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Kolkata – Strategic Hub for Eastern India

Executive Summary

Kolkata is the primary digital gateway for Eastern India and a strategic interconnection point for neighboring countries like Bangladesh and Nepal. For any business targeting this massive and rapidly growing user base, establishing a presence here is critical for delivering low-latency applications. Deploying infrastructure in Kolkata directly improves user experience and secures a competitive advantage in the region.

Kolkata: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent connectivity for the region, serving as a primary eastern gateway.
Direct Cloud On-RampsOver 1 – as of September 2025Direct connection to AWS improves hybrid cloud performance.
Power Cost≈$0.07/kWh, as of 2019Competitive pricing for industrial power in the region.
Disaster RiskHigh (5.5/10), as of September 2025Risks are manageable with modern facility engineering and site selection.
Tax IncentivesNo, as of September 2025Standard national business regulations apply.
Sales Tax18% GST, as of September 2025Standard Goods and Services Tax applies to colocation services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Over 6 providers are present in the market, as of September 2025. While a smaller market than Mumbai, Kolkata offers access to all major national carriers and regional fiber networks, with several carrier-neutral facilities available.

Direct Cloud On-Ramps: Kolkata provides direct, low-latency access to 1 major cloud region, as of September 2025. This includes dedicated on-ramps for: AWS.

Internet Exchange Points (IXPs): The market is served by the National Internet Exchange of India (NIXI). Peering at NIXI Kolkata keeps local traffic local, significantly reducing latency for users across West Bengal and Eastern India.

Bare Metal: Bare metal solutions are available from select providers, offering dedicated compute for performance-sensitive workloads. Options include providers like Hivelocity and phoenixNAP.

Power Analysis

Average Cost Of Power: Industrial power costs are approximately $0.07/kWh, as of 2019. This competitive rate helps manage the significant operational costs associated with high-density computing and large-scale deployments.

Power Grid Reliability: The power grid in Kolkata's data center corridors is well-engineered for commercial needs. Major colocation facilities offer connections to multiple substations and provide extensive on-site backup power generation to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Kolkata are positioned to serve the central business district and the expanding IT hub in Salt Lake (Sector V) and New Town. This ensures low-latency connectivity for the city's financial, technology, and BPO sectors.

Regional Market Reach: Kolkata is the undisputed digital hub for Eastern India, serving a population of over 300 million. Its strategic location also makes it an ideal point of presence for delivering services into Bangladesh, Nepal, and Bhutan.

Tax Advantage For Data Centers: India's tax structure is standardized under the Goods and Services Tax (GST), creating a predictable financial environment. There are currently no special tax incentives targeted exclusively at data center operations.

Natural Disaster Risk

Kolkata has a High overall disaster risk profile, with an INFORM score of 5.5 out of 10, as of September 2025. The primary natural hazards influencing this score are River Flood (9.2), Earthquake (8.3), Tsunami (7.8), Coastal Flood (7.8), and Tropical Cyclone (7.7). Diligent site selection is crucial; modern data centers in the region are built above flood plains and to specific seismic standards to mitigate these environmental threats.

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