Data Centers in Sargodha
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Sargodha, Pakistan – Strategic Entry with Favorable IT Taxation
Sargodha is an emerging data center market suited for organizations targeting central Punjab for local application delivery and disaster recovery. While connectivity and power infrastructure are still developing, significant government tax incentives for the IT and software sector make it a financially attractive location for specific workloads that can operate within the region's risk profile.
Sargodha, Pakistan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing infrastructure primarily serving local and regional business needs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major clouds requires connecting through hubs like Karachi or Lahore. |
| Power Cost | PKR 38.00–45.00/kWh (est.) | Fossil fuels dominate the grid mix, impacting price and stability. |
| Disaster Risk | High (INFORM Score: 6.4) – as of September 2025 | Significant exposure to river flooding and earthquakes requires resilient infrastructure. |
| Tax Incentives | Yes | Includes income tax exemptions, 100% foreign equity, and specific financing support. |
| Sales Tax | 18% GST (goods) – as of September 2025 | Services are taxed at 15–16% by the province. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has a developing carrier ecosystem, as of September 2025. Connectivity is supplied by a mix of national and regional providers, with most colocation facilities offering access to multiple carriers.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Sargodha, as of September 2025. Businesses require private network extensions or IP transit to connect to cloud provider networks in primary hubs like Karachi.
Internet Exchange Points (IXPs) Public peering is not established locally. Network traffic is typically exchanged through private peering arrangements or routed via national IXPs located in major cities like Karachi and Lahore.
Bare Metal Bare metal server options are available, typically through regional providers or global companies that can deploy equipment into local facilities. Providers like Hivelocity and Leaseweb can serve the broader region.
Power Analysis
Average Cost Of Power Industrial electricity costs are estimated between PKR 38.00–45.00/kWh, as of September 2025. The national energy mix relies heavily on fossil fuels (~66%) and hydroelectric power (~27%), leading to potential price volatility.
Power Grid Reliability The power grid in the region can experience stability issues. Data centers in Sargodha require robust UPS systems and on-site backup power generation with significant fuel reserves to guarantee uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Sargodha provide low-latency access to local government, agricultural businesses, and the large military presence at PAF Base Mushaf. This proximity is critical for local processing and data sovereignty requirements.
Regional Market Reach Sargodha serves as a digital hub for the central Punjab province, an economically significant and populous region of Pakistan. It enables service delivery to millions of consumers and thousands of businesses in surrounding cities.
Tax Advantage For Data Centers Pakistan offers compelling tax incentives for the IT sector. This includes broad income tax exemptions and specific government-backed financing products to support the construction and operation of national data centers.
Natural Disaster Risk
Sargodha has a high-risk profile for natural disasters, with an INFORM Risk score of 6.4, as of September 2025. The most significant environmental threats are driven by extreme weather and seismic activity.
Key natural hazards include:
- River Flood (9.5/10)
- Earthquake (9.2/10)
- Tropical Cyclone (7.1/10)
- Drought (5.0/10)
