Data Centers in Multan
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Multan – Emerging Digital Hub for Southern Punjab
Multan is an emerging market for digital infrastructure, ideal for enterprises targeting the agricultural and industrial heartland of Southern Punjab. Locating here reduces latency for a significant regional population, providing a crucial foothold in an underserved area of Pakistan's digital economy.
Multan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity options with reliable national fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Karachi or Lahore; private connectivity is available. |
| Power Cost | PKR 40.00-45.00/kWh | Industrial rates can be high; backup generation is standard practice. |
| Disaster Risk | High (6.4/10) – as of September 2025 | Significant exposure to river floods and earthquakes requires resilient infrastructure. |
| Tax Incentives | Yes | General and DC-specific incentives are available to spur IT sector growth. |
| Sales Tax | 18% GST (goods) – as of September 2025 | Services are taxed at 15–16% by the province, a key factor for opex. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a developing market, Multan has access to a focused group of national carriers. While fewer than in Karachi or Lahore, there are sufficient options to ensure redundant connectivity for business operations, as of September 2025.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Multan. Businesses require private network connections to major hubs like Karachi to establish dedicated access to cloud provider networks.
Internet Exchange Points (IXPs): Public peering is limited within Multan. Most traffic exchange occurs through private peering arrangements or is routed through the primary national exchange, PKIX, located in Islamabad.
Bare Metal: Bare metal server options are available in Pakistan's primary markets. Providers like Hivelocity can service the region, offering dedicated compute resources for workloads requiring maximum performance and control.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated between PKR 40.00-45.00/kWh as of September 2025. This rate makes power a significant operational expense, requiring careful capacity planning and management.
Power Grid Reliability: The national grid can experience fluctuations. Data centers in Multan, like in other Pakistani cities, depend on multi-layered backup systems, including enterprise-grade UPS units and on-site diesel generators, to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Multan are positioned to serve the city's core commercial districts and the vital agricultural and textile industries that dominate the regional economy. This proximity is critical for local manufacturing and supply chain operations.
Regional Market Reach: Multan provides effective digital access to the entirety of Southern Punjab, a region with a large population and growing economic importance. It acts as a strategic digital gateway to Central Pakistan.
Tax Advantage For Data Centers: Pakistan offers significant financial benefits for the IT and software sector, including income tax exemptions and allowances for 100% foreign equity. Specific financing support for national data center projects is also available, reducing the capital burden for new investors.
Natural Disaster Risk
Multan has a High-risk profile for natural disasters, with an overall INFORM risk score of 6.4 out of 10 as of September 2025. The primary threats are environmental, demanding infrastructure built to high resiliency standards.
Key risks include:
- River Flood: 9.5/10
- Earthquake: 9.2/10
- Tropical Cyclone: 7.1/10
- Drought: 5.0/10
