Data Centers in Kathmandu
3 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 Other Markets in Nepal
Kathmandu – Emerging Digital Gateway to the Himalayas
Executive Summary
Kathmandu is a foundational market for establishing a digital presence in Nepal and the broader Himalayan region. For businesses targeting South Asia's developing economies, colocation in Kathmandu provides the lowest possible latency to local users and a strategic entry point into a previously underserved market. This market is essential for content delivery networks, financial services, and cloud service providers looking to improve service reliability and user experience for Nepal's growing online population.
Kathmandu: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Connectivity is developing, with improving international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extensions to hubs like Mumbai. |
| Power Cost | NPR 5.00/kWh – as of September 2025 | Power is inexpensive and sourced primarily from renewable hydropower. |
| Disaster Risk | Moderate (4.6/10) – as of September 2025 | High seismic and flood risk requires careful site selection. |
| Tax Incentives | No | No specific data center incentives are currently offered. |
| Sales Tax | VAT applies – as of September 2025 | A national Value Added Tax (VAT) system is in place. |
Network & Connectivity Ecosystem
Kathmandu’s connectivity ecosystem is in a growth phase, centered on serving the national population with increasing international capacity.
Carrier Density & Carrier Neutrality: The market features over 3 data center facilities, as of September 2025. Carrier density is concentrated, with a focused group of local and regional providers offering services from carrier-neutral facilities.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Kathmandu, as of September 2025. Secure, private connectivity to major cloud providers like AWS, Google Cloud, and Microsoft Azure is achieved via network links to major hubs in India, such as Mumbai and Chennai.
Internet Exchange Points (IXPs): The primary exchange is the Nepal Internet Exchange (NPIX), which is crucial for keeping domestic internet traffic within the country, reducing latency for local users. Most major local ISPs and content providers peer at NPIX.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers like Hivelocity offer solutions suitable for this emerging market.
Power Analysis
Average Cost Of Power: Industrial power costs are competitive, averaging around NPR 5.00/kWh, as of September 2025. This low cost is a direct result of the country's extensive investment in hydropower, making it an affordable market for compute-intensive operations.
Power Grid Reliability: The national grid is overwhelmingly powered by hydropower (~95% renewable). While generally available, the supply can be subject to seasonal variations. Data centers in Kathmandu mitigate this with standard N+1 or 2N UPS systems and on-site diesel generators to ensure consistent uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Kathmandu provide low-latency access to the nation's primary economic and administrative center. They serve the capital's financial institutions, government agencies, and technology companies clustered within the Kathmandu Valley.
Regional Market Reach: A presence in Kathmandu effectively serves Nepal's population of over 30 million. It also offers a strategic position for reaching into adjacent markets in Northern India and the Tibetan Plateau where terrestrial latency from other hubs can be high.
Tax Advantage For Data Centers: While Nepal does not offer specific tax incentives for data center development, the government has established policies to encourage foreign direct investment in the technology sector. The country's overall investment climate aims to support infrastructure growth.
Natural Disaster Risk
Kathmandu has a moderate natural disaster risk profile, with an INFORM Risk score of 4.6 out of 10, as of September 2025. The primary threats are geologic and weather-related, making facility engineering and site selection critical for operational resilience.
The most significant natural hazards include:
- Earthquake: Extremely high risk (9.8/10) due to the region's seismic activity.
- River Flood: High risk (6.9/10), particularly during monsoon season.
- Epidemic: Moderate risk (6.0/10).
- Drought: Low risk (3.1/10).
