Data Centers in Nepal
4 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Markets in Nepal
Nepal – Sustainable Power at the Himalayan Edge
Executive Summary
Nepal is a strategic edge destination for firms localizing services for 30 million users while prioritizing sustainability. Its massive hydropower surplus offers a unique combination of low operational costs and a carbon-neutral footprint for the South Asian corridor.
Nepal: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional links to South Asian backbone networks. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are located in New Delhi. |
| Power Cost | NPR 5.00/kWh – as of September 2025 | Highly competitive rates driven by a massive hydropower surplus. |
| Disaster Risk | Moderate (4.6/10) – as of September 2025 | High seismic activity is the primary infrastructure consideration. |
| Tax Incentives | No – as of September 2025 | Standard corporate structures apply with no specific industry benefits. |
| Sales Tax | 13.00% VAT – as of September 2025 | Standard local rates apply to most digital services. |
Network & Connectivity Ecosystem
Nepal functions as an emerging edge market, primarily serving local demand and regional transit between major neighbors.
Carrier Density & Carrier Neutrality: Carrier count: 5–10 carriers, as of September 2025. The market consists of a mix of state-owned and private telecommunications firms offering varied fiber routes through the rugged terrain. While the count is lower than coastal hubs, the diversity of providers ensures competitive transport options for local traffic.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While local on-ramps for AWS or Google Cloud (GCP) are not physically present in Kathmandu, enterprises use private network interconnects or dedicated waves to reach major hubs in New Delhi.
Internet Exchange Points (IXPs): Internet Exchange Nepal (npIX) is the primary hub, facilitating local traffic exchange to keep data within the country and improve user experience for local consumers.
Bare Metal: General availability of global bare metal services is limited within the country, though providers like Leaseweb or Hivelocity offer regional support via nearby South Asian facilities to serve the Himalayan market.
Power Analysis
Nepal offers a unique energy profile dominated by renewable resources, providing a sustainable foundation for modern compute requirements.
Average Cost Of Power: Industrial electricity is priced at NPR 5.00/kWh, as of September 2025. This rate is significantly lower than many regional neighbors, offering a direct operational cost advantage for large deployments. The energy mix is approximately 95% hydropower, making it one of the cleanest grids in the region for carbon-conscious operators.
Power Grid Reliability: The national grid has seen significant upgrades in major business corridors like Kathmandu and Lalitpur. Infrastructure is supported by redundant substation configurations to manage the growing demand from the technology sector and ensure steady delivery.
Market Access, Business & Tax Climate
The business environment in Nepal is focused on digital transformation and infrastructure modernization to support a growing middle class.
Proximity To Key Business Districts: Data centers are centrally located near the Kathmandu and Lalitpur business districts. This proximity is vital for the banking and financial services sectors, which require low-latency access to primary data sets and secure local processing.
Regional Market Reach: Nepal provides a strategic jumping-off point for serving a national population of 30 million people. It also acts as a secondary path for traffic moving between India and China, offering geographic redundancy for regional network architects.
Tax Advantage For Data Centers: There are currently no specific tax incentives for the data center industry. Standard corporate structures apply, requiring financial planning to manage the 13.00% VAT and standard corporate levies.
Natural Disaster Risk
The overall risk profile for Nepal is Moderate (4.6/10), as of September 2025. While certain hazards are significant, the infrastructure is built with these specific risks in mind to maintain uptime.
- Earthquake: 9.8 (High) – as of September 2025
- River Flood: 6.9 (Moderate) – as of September 2025
- Epidemic: 6.0 (Moderate) – as of September 2025
- Drought: 3.1 (Low) – as of September 2025
Coastal Flood and Tsunami risks are not applicable to this inland location. All other natural hazards are considered minor or not listed for the region. High seismic risk is the primary driver for specialized building standards in the local data center market.
