Data Centers in Sargodha
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Sargodha – Emerging Digital Hub in Punjab
Sargodha is a developing market for digital infrastructure, primarily serving local commercial, agricultural, and academic sectors in the Punjab province. For businesses focused on this region, establishing a presence here can reduce latency for local users and provide a crucial foothold in an underserved area. This market is best suited for organizations prioritizing service delivery within central Pakistan.
Sargodha: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via hubs like Karachi or Lahore; private network extensions available. |
| Power Cost | PKR 35.00–45.00/kWh (est.) | Industrial power costs are influenced by a high reliance on fossil fuels. |
| Disaster Risk | High (6.4/10) – as of September 2025 | Significant exposure to river floods and earthquakes requires robust DR planning. |
| 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 province. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has a developing carrier ecosystem, with services from national providers available. While a precise count is unavailable, the focus is on providing reliable domestic connectivity rather than a dense international carrier scene as of September 2025.
Direct Cloud On-Ramps There are no direct cloud on-ramps located within Sargodha as of September 2025. Businesses requiring dedicated cloud access must connect to major hubs like Karachi or Lahore via private network links, such as PNI or wavelength services, to reach cloud provider fabrics.
Internet Exchange Points (IXPs) Public peering is limited within Sargodha itself. Most network interconnection occurs privately or is routed through the national Internet Exchange Point in Karachi, which is central to Pakistan's internet traffic flow.
Bare Metal Bare metal server options are generally available through providers that service emerging markets in the region. These services, offered by companies such as Leaseweb, allow businesses to deploy dedicated hardware without the capital expense of building their own facilities.
Power Analysis
Average Cost Of Power Industrial electricity costs are estimated to be between PKR 35.00–45.00/kWh as of September 2025. The national energy mix is dominated by fossil fuels (approximately 66%) and hydroelectric power (approximately 27%), which can lead to variable pricing. These power costs are a significant operational factor for any large-scale IT deployment.
Power Grid Reliability The power grid in the region can experience stability issues. Data centers operating in Sargodha require well-engineered power redundancy, including enterprise-grade UPS systems and backup generators with substantial fuel reserves, to ensure consistent uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Sargodha are positioned to serve the city's core agricultural economy, including citrus production and textile industries, as well as the needs of the large Sargodha Air Force Base. Proximity allows for low-latency support for local logistics, manufacturing, and government operations.
Regional Market Reach Sargodha provides effective digital access to the population of central and northern Punjab. Its location makes it a viable point of presence for serving cities like Faisalabad, Jhang, and Chakwal, reaching a substantial regional audience.
Tax Advantage For Data Centers Pakistan offers compelling tax incentives for the IT and software sector, including income tax exemptions and allowances for 100% foreign equity. The government also provides financing support for establishing national data centers, reducing the initial capital investment required to enter the market.
Natural Disaster Risk
Sargodha 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 driven by high hazard exposure and significant institutional and infrastructure vulnerability.
Key natural hazards include:
- River Flood: Score 9.5
- Earthquake: Score 9.2
- Tropical Cyclone: Score 7.1
- Drought: Score 5.0
