Nepal Data Center Infrastructure Market Size, Share & Forecast to 2035
Market at a glance
The Nepal Data Center Infrastructure market was worth USD 116.9 million in 2025 and is forecast to reach USD 404.2 million by 2035, growing at a 13.21% CAGR. Bagmati Province accounts for 71.8% of the market.
Source: DC Market Insights analysis
Key findings
Carrier-Neutral Builds Lift Estimated New Capacity to 5.3 MW in 2025
Operators Pair a Primary Site with Disaster Recovery Outside Kathmandu
Rules Cover Licensing but Not Siting or Environmental Review
Colocation Overtakes Enterprise Data Centers by 2035
What is inside the report
- 01Introduction
- 02Research Methodology
- 03Executive Summary
- 04Market Dynamics
- 05Pricing
- 06Standards and Regulation
- 07Supply Chain
- 08Market Size and Forecast
- 09Market by Infrastructure Type
- 10Market by Electrical Infrastructure
- 22chapters
- 2020-2024Historical period
- 2026-2035Forecast period
- 13Companies profiled
Regional insights
- Bagmati Province71.8%
- Gandaki Province8.3%
- Lumbini Province7.4%
- Koshi Province6.1%
- Madhesh Province4.2%
- Karnali and Sudurpashchim Provinces2.2%
Segmentation
Companies profiled
- WorldLink Communications
- Data World
- Ncell
- Nepal Telecom
- Nepal Electricity Authority
- Huawei
- Yotta Data Services
- BLC Holdings
- Bichuten Data Vault
- Google Cloud
- VVDN Technologies
- AMD
- Micron
Recent developments
Huawei agreed under a letter of intent to build a data center for Nepal Telecom worth NPR 484 million (USD 3.5 million), with a primary site in Kathmandu and a disaster recovery center in Bhairahawa (Source: Data Center Dynamics news report).
WorldLink launched a 3.5 MW data center with 520 racks in Chandragiri, Kathmandu (Source: Data Center Dynamics news report).
Ncell became the first company enlisted by the Department of Information Technology as a data centre and cloud service provider under the directives that took effect on 28 January 2025 (Source: NepaliTelecom news report and Ncell press release).
IFC and Standard Chartered Bank Nepal committed USD 29 million to WorldLink and Data World for fiber networks and data centers, including Nepal's first EDGE-certified facility (Source: ShareSansar news report).
Bichuten Data Vault announced Tier IV hyperscale data centers in Kathmandu and Birgunj, starting at 240 kW and planned to reach 5 MW by 2030 (Source: The Himalayan Times news report).
Full analysis
The Nepal Data Center Infrastructure Market covers the electrical, mechanical, civil and architectural systems and the IT and network equipment installed in data centers in Nepal, from bank and government server rooms to carrier-neutral colocation halls. DC Market Insights values the Nepal Data Center Infrastructure Market at USD 116.86 million in 2025 and forecasts USD 404.24 million by 2035, a CAGR of 13.21%. The 2025 value is built from the installed base itself: DC Market Insights estimates that 5.3 MW of new IT capacity at about USD 6.0 million of facility capex per MW gives USD 31.77 million of new-build spend, upgrades on the 24.2 MW already operating add USD 5.33 million, and IT and network equipment on an average 26.85 MW of live IT load at about USD 2.97 million per MW adds USD 79.76 million. Hyperscale data centers are the fastest-growing segment at 31.82% a year because the Tier IV hyperscale projects announced for Kathmandu and Birgunj start from almost zero, and Madhesh Province is the fastest-growing region at 17.70% a year as Birgunj is one of the two sites of that Tier IV project.
Executive Summary
The Nepal Data Center Infrastructure Market size was valued at USD 50.88 million in 2020, reached USD 116.86 million in 2025, and is anticipated to reach USD 404.24 million by 2035, at a CAGR of 13.21% during the forecast period.
| Report attribute | Details |
|---|---|
| Historical Period | 2020-2024 |
| Base Year | 2025 |
| Forecast Period | 2026-2035 |
| Nepal Data Center Infrastructure Market Size 2025 | USD 116.86 Million |
| Nepal Data Center Infrastructure Market, CAGR | 13.21% |
| Nepal Data Center Infrastructure Market Size 2035 | USD 404.24 Million |
The market grew at 18.09% a year between 2020 and 2025, and 2025 alone added 37.3% over 2024 because a single carrier-neutral facility came online. In February 2025, WorldLink opened a 3.5 MW data center in Chandragiri, Kathmandu, with 520 racks, and DC Market Insights counts it as about two thirds of the 5.3 MW of IT capacity added in Nepal that year.
Growth slows to 13.21% a year from 2025 to 2035 because 2025 was a lumpy year for construction, but the installed base keeps compounding: DC Market Insights models live IT load rising from 29.5 MW at the end of 2025 to 85.5 MW by 2035. IT and network equipment carries most of the value at 68.3% of 2025 spending, while facility systems (power, cooling, buildings, fire and security) carry 31.7%.

Market Scope: What Does the Nepal Data Center Infrastructure Market Cover?
The Nepal Data Center Infrastructure Market is the annual spending on the physical and IT infrastructure of data centers located in Nepal, valued at first sale in current US dollars, with 2025 as the base year and forecasts to 2035. DC Market Insights sizes it at USD 116.86 million in 2025.
Included. Electrical infrastructure (grid connection, uninterruptible power supply (UPS), battery energy storage systems (BESS), power distribution units (PDUs), transfer switches and switchgear), mechanical infrastructure (computer room air conditioners and air handlers (CRAC and CRAH), chillers, containment, pumps and piping, liquid cooling), civil, structural and architectural work (foundations, superstructure, envelope, raised floors, modular buildings), fire, physical security and data center infrastructure management (DCIM) systems, and IT and network equipment (servers, storage, networking, cabling and optical fiber, racks).
Excluded. Land, electricity bills, software licences outside DCIM, long-haul and metro fiber outside the data center site, cloud and colocation service revenue, and operating labor.
How the segments fit together. The infrastructure-type split cuts the full USD 116.86 million into five systems. The electrical, mechanical and IT splits break down their own parent system. The delivery-model split covers only facility spending (USD 37.10 million in 2025), because servers and switches are bought outside construction contracts. The data-center-type, tier and province splits re-cut the full market.
Market Drivers: What Drives the Nepal Data Center Infrastructure Market?
Three drivers explain most of the growth in the Nepal Data Center Infrastructure Market: carrier-neutral capacity that grew by 3.5 MW in a single facility, a 2025 directive that pushes government data into certified Tier 3 sites, and a hydropower surplus that lets operators promise clean and continuous power.
Carrier-Neutral Builds Lift Estimated New Capacity to 5.3 MW in 2025
The Nepal Data Center Infrastructure Market is moving from in-house server rooms to shared facilities. WorldLink’s Chandragiri data center, launched in February 2025, has 3.5 MW of capacity and 520 racks and sits near the Mata Tirtha substation owned by the Nepal Electricity Authority. WorldLink already ran a facility in Pulchowk, Lalitpur that offers colocation, hosting and private cloud. In July 2025, the International Finance Corporation (IFC), with Standard Chartered Bank Nepal, committed USD 29 million to WorldLink and its subsidiary Data World to expand fiber networks and build data centers, including the country’s first EDGE-certified facility (Source: IFC press release). DC Market Insights counts 5.3 MW of IT capacity added in 2025, more than twice the 2.4 MW added in 2024, and USD 31.77 million of new-build facility spending.
The 2025 Directive Requires Tier 3 Sites for Government Data
Regulation now sets a floor on build quality. The Ministry of Communication and Information Technology (MoCIT) published the Data Centre and Cloud Services (Operation and Management) Directives in February 2025, and providers must enroll with the Department of Information Technology (DoIT). Data centers that store government data must hold a minimum Tier 3 rating, and every data center must submit its tier certificate within a year of enrollment. DC Market Insights estimates that Tier 3 facilities take 49.7% of 2025 infrastructure spending and 60.2% by 2035, which moves money from basic server rooms into redundant power and cooling.
A Hydropower Surplus Makes Power a Selling Point
Nepal’s installed electricity capacity reached 3,602 MW by mid-March 2025, and 99% of the population has access to electricity, according to the government’s Economic Survey. The country exported 3.877 billion units of electricity in fiscal year 2025-26, worth 29.32 billion Nepalese rupees (NPR), up from 2.3829 billion units a year earlier. WorldLink built its Chandragiri site next to a substation, and Bichuten Data Vault says its planned facilities will use only Nepalese hydroelectric power. DC Market Insights models live IT load nearly tripling from 29.5 MW in 2025 to 85.5 MW in 2035 on the back of this surplus.
Market Trends: How Is Data Center Infrastructure in Nepal Changing?
The Nepal Data Center Infrastructure Market is shifting toward certified Tier 3 and Tier 4 builds, paired primary and disaster recovery (DR) sites, and the first AI-ready capacity.
Operators Pair a Primary Site with Disaster Recovery Outside Kathmandu
Business continuity now means a second site outside Kathmandu Valley, often in another province. Ncell runs a primary Tier III Integrated Data Centre in Nakkhu, Lalitpur and two disaster recovery data centres in Pokhara and Hetauda. Nepal Telecom signed a letter of intent with Huawei for a data center worth NPR 484 million (USD 3.5 million), with the primary site in Kathmandu and a disaster recovery center 265 km away in Bhairahawa. DC Market Insights estimates that Gandaki and Lumbini provinces together take 15.7% of 2025 spending, mostly on DR capacity.
Tier IV and Hyperscale Projects Reach Nepal
In May 2026, Bichuten Data Vault announced what it calls Nepal’s first Tier IV hyperscale data center, at two locations in Kathmandu and Birgunj, starting at 240 kW and planned to expand to 5 MW by 2030, with VVDN Technologies (VVDN), Google Cloud, Advanced Micro Devices (AMD) and Micron as partners. In the DC Market Insights model, hyperscale data center infrastructure grows 31.82% a year to 2035, the fastest of any buyer type, and Tier 4 spending grows 24.16% a year.
Battery Storage and Liquid Cooling Enter the Bill of Materials
Higher rack density changes what operators buy. Battery energy storage systems are the fastest-growing electrical item at 14.52% a year, from USD 1.08 million to USD 4.19 million, as DC Market Insights expects new builds to pair UPS systems with battery storage. Other cooling, which includes liquid cooling, grows 12.61% a year as AI and high-performance computing racks arrive. The Nepal Electricity Authority’s own Suchatar data center, built to Tier III quality, shows the conventional pattern: two generators, 1 MW of IT capacity and two modular UPS units of 300 kVA.
Market Challenges: What Holds the Nepal Data Center Infrastructure Market Back?
Thin regulation outside the directive and a small, lumpy pipeline are the two constraints that DC Market Insights expects to keep the Nepal Data Center Infrastructure Market below 10 MW of new capacity a year through 2035.
Rules Cover Licensing but Not Siting or Environmental Review
The 2025 directive governs who may operate a data center and its tier and security certificates, not where it is built or its environmental review. Data centres do not appear on Schedule 3 of Nepal’s environmental framework, so no full Environmental Impact Assessment (EIA) is required, and no monitoring framework produces data on local impacts, the Kathmandu Post reported in April 2026.
Announced Projects Are Few and Some Are Disputed
A small number of projects decide each year’s spending, so one delay moves the total. In May 2026, WorldLink sources told NepaliTelecom there was no agreement, non-disclosure agreement or contract with Meta, after reports of a data center collaboration worth Rs 5 billion. The project of Yotta Data Services and BLC Holdings (BLC) was announced in April 2024 with an estimated investment of Rs 3.5 billion and a 4 MW IT load. DC Market Insights keeps its base case at 3.2 MW of new capacity in 2026, down from 5.3 MW in 2025, and books announced projects only when they are funded.
Market Opportunities: Where Are the New Revenue Pools in Nepal’s Data Centers?
The two largest new revenue pools in the Nepal Data Center Infrastructure Market are colocation facilities, growing at 14.91% a year to USD 149.16 million, and upgrades of the existing base, which grow to USD 23.06 million by 2035.
Colocation Overtakes Enterprise Data Centers by 2035
Colocation data centers spend USD 37.16 million on infrastructure in 2025 and are forecast to reach USD 149.16 million by 2035, overtaking enterprise data centers at USD 134.21 million. Ncell says its Tier III data centre can serve banks, government agencies and large enterprises, which shows how tenants that once ran their own rooms can rent certified space instead. Nepal had 29.11 million broadband subscribers in mid-April 2025, including 3,098,621 fiber-to-the-home connections, and that traffic needs local hosting. The Nepal Data Center Market report covers the services side of the same demand.
Upgrades and IT Refresh Grow Faster Than New Builds
Retrofit and upgrade work is worth USD 5.33 million in 2025 and USD 23.06 million in 2035, a CAGR of 15.77%, the fastest of the delivery models. Servers grow from USD 37.65 million to USD 164.01 million at 15.85% a year, and storage from USD 13.88 million to USD 53.02 million; the Nepal Data Center Storage Market report looks at storage systems in more detail. The Budget 2025/26 gives exporters of IT services a 75% income tax exemption, which DC Market Insights expects to support IT service firms that host workloads in Nepal.
Pricing: How Much Does a Data Center in Nepal Cost per MW?
A new data center in Nepal costs about USD 6.0 million per MW of IT load in 2025 for facility systems alone, and the IT and network equipment in it costs about USD 2.97 million per MW each year. These are DC Market Insights estimates, excluding land and labor.
| Spend per MW of IT load (USD million) | 2020 | 2025 | 2030 | 2035 |
|---|---|---|---|---|
| Facility capex per new MW | 5.62 | 5.99 | 6.39 | 6.82 |
| Facility upgrades per installed MW per year | 0.19 | 0.22 | 0.26 | 0.30 |
| IT and network equipment per installed MW per year | 2.55 | 2.97 | 3.46 | 4.03 |
Published projects support the facility figure. The Yotta and BLC project, at Rs 3.5 billion for 4 MW, works out to Rs 875 million per MW, or about USD 6.37 million at the Nepal Rastra Bank selling rate of Rs 137.31 per US dollar in June 2025; the published project figure does not say whether land is included.
Standards and Regulation: Which Rules Shape Data Center Infrastructure in Nepal?
Four sets of rules decide how data centers in Nepal are built: the 2025 data center and cloud directive, tier ratings, the TIA-942 infrastructure standard of the Telecommunications Industry Association (TIA), and the national seismic building code.
Data Centre and Cloud Services Directives (2025). The directives took effect on 28 January 2025, according to Ncell, and MoCIT published them on 10 February 2025 under the Electronic Transactions Act. Service providers must enroll with DoIT, and existing operators had six months to apply. Ncell was the first company enlisted as a data centre and cloud service provider after DoIT reviewed its fire safety protocols, security and privacy policies, business continuity plans, tier classification and IP pool details (Source: Ncell press release).
Tier ratings and certificates. Data centers storing government data must hold at least a Tier 3 rating. All data centers must submit a tier rating certificate within a year of enrollment and an information security standard certificate covering both the data center and its DR site.
TIA-942-C (May 2024). The TIA-942 Telecommunications Infrastructure Standard for Data Centers specifies the requirements for the infrastructure of data centers and computer rooms of any size, and Revision C updates its telecommunications, power, cooling, architecture and fire protection requirements.
Seismic code. Nepal’s National Building Code NBC 105, Seismic Design of Buildings in Nepal, was updated in 2020. DC Market Insights includes seismic structural work in the civil, structural and architectural segment, worth USD 7.27 million, or 19.6% of facility spending, in 2025.
Market Segmentation: Which Segment Leads the Nepal Data Center Infrastructure Market?
IT and network infrastructure leads the Nepal Data Center Infrastructure Market with 68.3% of 2025 value, enterprise data centers lead buyers with 44.6%, and Tier 3 facilities lead with 49.7%. Hyperscale data centers are the fastest-growing segment at 31.82% a year, from a small base, because Bichuten Data Vault plans Tier IV hyperscale capacity in Kathmandu and Birgunj, starting at 240 kW and expanding to 5 MW by 2030; among infrastructure types, IT and network equipment grows fastest at 15.24% a year.
By Infrastructure Type: IT and Network Equipment Leads with 68.3%
| Infrastructure type | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| IT & Network Infrastructure | 79.76 | 68.3% | 329.34 | 15.24% |
| Electrical Infrastructure | 17.22 | 14.7% | 33.78 | 6.97% |
| Mechanical Infrastructure | 10.31 | 8.8% | 22.17 | 7.96% |
| Civil / Structural & Architectural | 7.27 | 6.2% | 13.63 | 6.49% |
| Others (Fire, Security and DCIM) | 2.30 | 2.0% | 5.32 | 8.75% |
Facility systems grow more slowly than IT because 2025 carried a large one-off build. Mechanical infrastructure grows faster than electrical, at 7.96% against 6.97%, as rack density rises.
By Electrical Infrastructure: UPS Systems Lead with 35.6%
| Electrical infrastructure | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Uninterruptible Power Supply (UPS) | 6.13 | 35.6% | 10.85 | 5.88% |
| Transfer Switches and Switchgear | 3.77 | 21.9% | 6.92 | 6.26% |
| Utility Service and Grid Connection | 2.53 | 14.7% | 4.46 | 5.83% |
| Power Distribution Units (PDUs) | 2.38 | 13.8% | 4.93 | 7.55% |
| Others | 1.33 | 7.7% | 2.43 | 6.21% |
| Battery Energy Storage Systems (BESS) | 1.08 | 6.3% | 4.19 | 14.52% |
By Mechanical Infrastructure: CRAC and CRAH Units Lead with 41.3%
| Mechanical infrastructure | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Cooling Units (CRAC / CRAH) | 4.26 | 41.3% | 7.44 | 5.73% |
| Chillers (Air-cooled / Water-cooled) | 2.72 | 26.4% | 5.50 | 7.29% |
| Pumps and Piping Systems | 1.22 | 11.8% | 3.08 | 9.70% |
| Others (incl. Liquid Cooling) | 1.11 | 10.8% | 3.64 | 12.61% |
| Containment Systems (Hot/Cold Aisle) | 1.00 | 9.7% | 2.51 | 9.64% |
Room cooling units hold the largest share because most installed racks in Nepal are low-density air-cooled racks in DC Market Insights’ model; liquid cooling sits inside the other cooling row and grows fastest at 12.61% a year.
By IT and Network Infrastructure: Servers Lead with 47.2%
| IT and network infrastructure | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Servers | 37.65 | 47.2% | 164.01 | 15.85% |
| Networking Equipment | 15.07 | 18.9% | 60.27 | 14.87% |
| Storage | 13.88 | 17.4% | 53.02 | 14.34% |
| Cabling and Optical Fiber | 5.42 | 6.8% | 20.42 | 14.18% |
| Racks and Enclosures | 3.91 | 4.9% | 14.82 | 14.25% |
| Others | 3.83 | 4.8% | 16.80 | 15.93% |
By Data Center Type: Enterprise Data Centers Lead with 44.6%
| Data center type | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Enterprise Data Center | 52.12 | 44.6% | 134.21 | 9.92% |
| Colocation Data Center | 37.16 | 31.8% | 149.16 | 14.91% |
| Other Data Centers (Government and Telecom Core) | 17.65 | 15.1% | 46.89 | 10.26% |
| Edge Data Center | 7.48 | 6.4% | 35.17 | 16.74% |
| Hyperscale Data Center | 2.45 | 2.1% | 38.81 | 31.82% |
Enterprise data centers, the in-house rooms of banks, government agencies and large companies, still spend the most, but colocation overtakes them by 2035. The other data centers row covers government and telecom core facilities such as the Nepal Electricity Authority site in Suchatar.
By Tier Type: Tier 3 Leads with 49.7%
| Tier | 2025 (USD million) | Share 2025 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|---|
| Tier 3 | 58.08 | 49.7% | 243.35 | 15.40% |
| Tier 2 | 43.94 | 37.6% | 110.76 | 9.69% |
| Tier 1 | 11.45 | 9.8% | 20.62 | 6.06% |
| Tier 4 | 3.39 | 2.9% | 29.51 | 24.16% |
By Delivery Model: Design-Build and EPC Lead Facility Spend with 38.6%
Delivery models apply to the USD 37.10 million of facility spending in 2025. Design-build and engineering, procurement and construction (EPC) contracts account for USD 14.33 million (38.6%), turnkey contracts USD 9.09 million (24.5%), retrofit and upgrade work USD 5.33 million (14.4%), construction management USD 4.19 million (11.3%) and modular factory-built systems USD 4.16 million (11.2%). Modular factory-built systems grow 10.04% a year to USD 10.83 million by 2035 because prefabricated rooms suit edge sites outside Kathmandu.
DC Exclusive: The Nepal Spend per MW Model and Infrastructure × Buyer Matrix
At USD 38.55 million in 2025, IT equipment in enterprise data centers is the single largest cell of the matrix and 33.0% of the Nepal Data Center Infrastructure Market. The matrix below cross-tabulates what is bought against who buys it.
| 2025, USD million | Enterprise | Colocation | Government and Telecom Core | Edge | Hyperscale | Total |
|---|---|---|---|---|---|---|
| IT & Network Infrastructure | 38.55 | 22.74 | 11.86 | 4.89 | 1.72 | 79.76 |
| Electrical Infrastructure | 6.68 | 6.41 | 2.58 | 1.26 | 0.29 | 17.22 |
| Mechanical Infrastructure | 4.11 | 3.79 | 1.58 | 0.65 | 0.18 | 10.31 |
| Civil / Structural & Architectural | 1.79 | 3.49 | 1.25 | 0.52 | 0.22 | 7.27 |
| Others (Fire, Security and DCIM) | 0.99 | 0.73 | 0.38 | 0.16 | 0.04 | 2.30 |
| Total | 52.12 | 37.16 | 17.65 | 7.48 | 2.45 | 116.86 |
Colocation buyers spend 38.8% of their budget on facility systems, against 26.0% for enterprise data centers, because colocation operators build the shell, power and cooling that enterprise tenants no longer build themselves. Civil and structural work is the one system where colocation outspends enterprise, at USD 3.49 million against USD 1.79 million. Hyperscale spending is still small at USD 2.45 million, and civil work already takes 9.0% of it, close to the 9.4% share in colocation, because hyperscale projects start with the building.
The matrix is a DC Market Insights model, not a shipment count. It is built from 38 inputs: 17 capacity inputs (the 2020 opening base of 15.8 MW and 16 annual capacity cohorts), 3 spend-per-MW curves, 5 infrastructure-type shares, 5 data-center-type shares and 8 cell weights. The model and its assumptions are explained on our research methodology page.
Regional Insights: Which Region Leads the Nepal Data Center Infrastructure Market?
Bagmati Province, home to Kathmandu Valley, leads the Nepal Data Center Infrastructure Market with 71.8% of 2025 value, and Madhesh Province is the fastest-growing region at 17.70% a year because Birgunj is one of the two sites of a planned Tier IV project.
Bagmati Province Leads with 71.8% Share
Bagmati Province spent USD 83.90 million on data center infrastructure in 2025 and is forecast to reach USD 262.35 million by 2035, a CAGR of 12.08%. The province holds WorldLink’s Chandragiri and Pulchowk sites, Ncell’s Nakkhu primary data centre, and the planned Yotta and BLC site at Ramkot. Bagmati loses 6.9 points of share by 2035 as DR and edge capacity spreads to other provinces.
Gandaki Province Holds 8.3% Share
Gandaki Province is worth USD 9.70 million in 2025 and USD 35.98 million by 2035, a CAGR of 14.01%. Pokhara hosts one of Ncell’s two disaster recovery data centres.
Lumbini Province Holds 7.4% Share
Lumbini Province is worth USD 8.65 million in 2025 and USD 38.81 million by 2035, a CAGR of 16.20%. Nepal Telecom’s planned disaster recovery center in Bhairahawa, 265 km from Kathmandu, anchors the province.
Koshi Province Holds 6.1% Share
Koshi Province is worth USD 7.13 million in 2025 and USD 29.51 million by 2035, a CAGR of 15.26%, mostly enterprise rooms and telecom sites in DC Market Insights’ allocation.
Madhesh Province Holds 4.2% Share and Grows Fastest
Madhesh Province is worth USD 4.91 million in 2025 and USD 25.06 million by 2035, a CAGR of 17.70%. Birgunj, about 130 km south of Kathmandu, is one of the two locations of the Tier IV project announced by Bichuten Data Vault in May 2026.
Karnali and Sudurpashchim Provinces Hold 2.2% Share
Karnali and Sudurpashchim provinces together are worth USD 2.57 million in 2025 and USD 12.53 million by 2035, a CAGR of 17.17%, mostly small edge rooms for telecom and government services in DC Market Insights’ allocation.
Forecast Scenarios: How Could the 2035 Forecast Change?
The Nepal Data Center Infrastructure Market reaches USD 404.24 million by 2035 in the base case, with a range of USD 298.92 million to USD 492.32 million across the low and high scenarios.
| Scenario | Assumption from 2026 | 2035 (USD million) | CAGR 2025-2035 |
|---|---|---|---|
| Low | Capacity additions 30% below base; IT spend per MW grows 2.2% a year | 298.92 | 9.85% |
| Base | Additions rise from 3.2 MW to 7.6 MW a year; IT spend per MW grows 3.1% a year | 404.24 | 13.21% |
| High | Additions 25% above base; IT spend per MW grows 3.6% a year | 492.32 | 15.47% |
The low case is what a stall in announced projects looks like: Tier IV and hyperscale plans slip past 2030 and banks keep older rooms longer. The high case assumes that the Tier IV projects in Kathmandu and Birgunj reach their 5 MW target and that cross-border demand from India uses Nepal’s surplus hydropower for hosting.
Competitive Insights: Who Leads the Nepal Data Center Infrastructure Market?
- WorldLink Communications
- Data World
- Ncell
- Nepal Telecom
- Nepal Electricity Authority
- Huawei
- Yotta Data Services
- BLC Holdings
- Bichuten Data Vault
- Google Cloud
- VVDN Technologies
- AMD
- Micron
DC Market Insights estimates that WorldLink was the largest builder in the Nepal Data Center Infrastructure Market in 2025: its 3.5 MW Chandragiri facility accounts for about 66.0% of the 5.3 MW of IT capacity added in 2025 (DC Market Insights estimate, based on the capacity WorldLink announced set against the model’s 2025 additions). Ncell competes on certification, as the first provider enlisted under the 2025 directive, with a Tier III primary site in Nakkhu and DR sites in Pokhara and Hetauda. Nepal Telecom plans a primary data center in Kathmandu and a DR center in Bhairahawa with Huawei as the infrastructure supplier, and the Nepal Electricity Authority runs its own Tier III-quality site in Suchatar. Yotta Data Services and BLC Holdings plan a 4 MW Tier 3 site at Ramkot, and Bichuten Data Vault plans Tier IV capacity in Kathmandu and Birgunj with VVDN Technologies, Google Cloud, AMD and Micron as partners. Competition centers on certified tier ratings, a DR site outside Kathmandu Valley, and reliable power.
Recent Developments
- In January 2025, Huawei agreed under a letter of intent to build a data center for Nepal Telecom worth NPR 484 million (USD 3.5 million), with a primary site in Kathmandu and a disaster recovery center in Bhairahawa (Source: Data Center Dynamics news report).
- In February 2025, WorldLink launched a 3.5 MW data center with 520 racks in Chandragiri, Kathmandu (Source: Data Center Dynamics news report).
- In April 2025, Ncell became the first company enlisted by the Department of Information Technology as a data centre and cloud service provider under the directives that took effect on 28 January 2025 (Source: NepaliTelecom news report and Ncell press release).
- In July 2025, IFC and Standard Chartered Bank Nepal committed USD 29 million to WorldLink and Data World for fiber networks and data centers, including Nepal’s first EDGE-certified facility (Source: ShareSansar news report).
- In May 2026, Bichuten Data Vault announced Tier IV hyperscale data centers in Kathmandu and Birgunj, starting at 240 kW and planned to reach 5 MW by 2030 (Source: The Himalayan Times news report).
We follow these deals, launches and capacity announcements as they happen in our data center industry updates.
Methodology: How We Built the Nepal Data Center Infrastructure Market Model
DC Market Insights built this market bottom-up from 16 annual capacity cohorts (2020 to 2035) on an opening base of 15.8 MW of IT load. Each cohort’s new megawatts were priced at a facility capex per MW of USD 5.62 million in 2020, rising 1.3% a year; upgrades were added on the installed base at USD 0.19 million per MW in 2020, rising 3% a year; and IT and network equipment was priced on the average live IT load at USD 2.55 million per MW in 2020, rising 3.1% a year. The total was split by 5 infrastructure types, 6 electrical items, 5 mechanical items, 6 IT items, 5 data center types, 4 tiers, 5 delivery models and 6 province groups, and every split sums to its parent total. The result was checked top-down against 3 published project costs and capacities: the Yotta and BLC budget of Rs 875 million per MW, the 3.5 MW Chandragiri launch and the NPR 484 million Huawei letter of intent for Nepal Telecom. The analyst named on this page built the model, and the reviewer checked the arithmetic, the sources and the dates before publication.
Table of contents
- 01Introduction
- 1.1Market Definition and Scope
- 1.2Segments Covered
- 1.3Currency and Units
- 02Research Methodology
- 2.1Bottom-up Capacity Cohort Model
- 2.2Spend per MW Curves
- 2.3Top-down Checks Against Published Projects
- 2.4Source Ledger and Fact Check
- 03Executive Summary
- 3.1Market Size, 2020, 2025 and 2035
- 3.2Key Findings
- 04Market Dynamics
- 4.1Drivers
- 4.2Trends
- 4.3Challenges
- 4.4Opportunities
- 05Pricing
- 5.1Facility Capex per MW of IT Load
- 5.2Upgrade Spend per Installed MW
- 5.3IT and Network Spend per Installed MW
- 06Standards and Regulation
- 6.1Data Centre and Cloud Services Directives 2025
- 6.2Tier Ratings
- 6.3TIA-942-C
- 6.4NBC 105 Seismic Design
- 07Supply Chain
- 7.1Equipment Suppliers and Integrators
- 7.2Power Supply and Grid Connection
- 08Market Size and Forecast
- 8.1Market Size, 2020-2035
- 8.2Installed IT Load, 2020-2035
- 09Market by Infrastructure Type
- 9.1Electrical Infrastructure
- 9.2Mechanical Infrastructure
- 9.3Civil / Structural & Architectural
- 9.4IT & Network Infrastructure
- 9.5Others
- 10Market by Electrical Infrastructure
- 10.1Uninterruptible Power Supply (UPS)
- 10.2Transfer Switches and Switchgear
- 10.3Utility Service and Grid Connection
- 10.4Power Distribution Units (PDUs)
- 10.5Battery Energy Storage Systems (BESS)
- 10.6Others
- 11Market by Mechanical Infrastructure
- 11.1Cooling Units (CRAC / CRAH)
- 11.2Chillers
- 11.3Pumps and Piping Systems
- 11.4Containment Systems
- 11.5Others (incl. Liquid Cooling)
- 12Market by IT & Network Infrastructure
- 12.1Servers
- 12.2Networking Equipment
- 12.3Storage
- 12.4Cabling and Optical Fiber
- 12.5Racks and Enclosures
- 12.6Others
- 13Market by Data Center Type
- 13.1Enterprise Data Center
- 13.2Colocation Data Center
- 13.3Government and Telecom Core
- 13.4Edge Data Center
- 13.5Hyperscale Data Center
- 14Market by Tier Type
- 14.1Tier 1
- 14.2Tier 2
- 14.3Tier 3
- 14.4Tier 4
- 15Market by Delivery Model
- 15.1Design-build / EPC
- 15.2Turnkey
- 15.3Retrofit / Upgrade
- 15.4Construction Management
- 15.5Modular Factory-built
- 16DC Exclusive: Infrastructure × Buyer Matrix
- 16.1Matrix, 2025
- 16.2Model Inputs
- 17Market by Region
- 17.1Bagmati Province
- 17.2Gandaki Province
- 17.3Lumbini Province
- 17.4Koshi Province
- 17.5Madhesh Province
- 17.6Karnali and Sudurpashchim Provinces
- 18Regional Cross-Sections
- 18.1Province Shares, 2025 and 2035
- 18.2Province Growth Rates, 2025-2035
- 19Forecast Scenarios
- 19.1Low, Base and High Cases to 2035
- 20Competitive Landscape
- 20.1Capacity Added by Operator, 2025
- 20.2Competitive Positioning
- 21Company Profiles
- 21.1WorldLink Communications
- 21.2Data World
- 21.3Ncell
- 21.4Nepal Telecom
- 21.5Nepal Electricity Authority
- 21.6Huawei
- 21.7Yotta Data Services
- 21.8BLC Holdings
- 21.9Bichuten Data Vault
- 21.10Google Cloud
- 21.11VVDN Technologies
- 21.12AMD
- 21.13Micron
- 22Analyst Recommendations
- 22.1For Operators
- 22.2For Equipment Suppliers
- 22.3For Investors
- Fig. 1Nepal Data Center Infrastructure Market Size, 2020–2035
- Fig. 2Nepal Data Center Infrastructure Market by Province, 2025 and 2035
- Fig. 3Installed IT Load in Nepal, 2020-2035
- Fig. 4Market by Infrastructure Type, 2025 and 2035
- Fig. 5Market by Data Center Type, 2025 and 2035
- Table 1Report Attributes
- Table 2Spend per MW of IT Load, 2020, 2025, 2030 and 2035
- Table 3Market by Infrastructure Type, 2025 and 2035
- Table 4Market by Electrical Infrastructure, 2025 and 2035
- Table 5Market by Mechanical Infrastructure, 2025 and 2035
- Table 6Market by IT & Network Infrastructure, 2025 and 2035
- Table 7Market by Data Center Type, 2025 and 2035
- Table 8Market by Tier Type, 2025 and 2035
- Table 9Market by Delivery Model, 2025 and 2035
- Table 10Infrastructure × Buyer Matrix, 2025
- Table 11Market by Province, 2025 and 2035
- Table 12Forecast Scenarios, 2035
About this report
Written by Priyanka Mor and reviewed by Deepti Agrawal, Senior Editor, Research. Figures are built top-down and bottom-up and reconciled before publication, with 2025 as the base year.
Read our methodologyHow we built this
- Historical period2020-2024
- Base year2025
- Forecast period2026-2035
- Sizing approachTop-down + bottom-up
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Advisory on this market
Due diligence, site selection and market entry work, by the analysts who wrote this report.
See consulting servicesFrequently asked questions
USD 116.86 million in 2025. DC Market Insights forecasts the Nepal Data Center Infrastructure Market to reach USD 404.24 million by 2035, a CAGR of 13.21%, as live IT load grows from 29.5 MW to 85.5 MW.
3.5 MW: WorldLink’s Chandragiri data center, launched in February 2025 with 520 racks, is the largest 2025 addition in DC Market Insights’ count. Ncell runs a Tier III primary site in Nakkhu with disaster recovery sites in Pokhara and Hetauda, and the Nepal Electricity Authority runs a site in Suchatar.
68.3% of 2025 value goes to IT and network infrastructure, worth USD 79.76 million. Among facility systems, uninterruptible power supply (UPS) systems lead electrical infrastructure with 35.6%, and CRAC and CRAH units lead mechanical infrastructure with 41.3%.
31.82% a year: hyperscale data centers grow fastest, from USD 2.45 million in 2025 to USD 38.81 million by 2035, because the Tier IV hyperscale projects announced for Kathmandu and Birgunj start from almost zero.
71.8% of 2025 value sits in Bagmati Province, home to Kathmandu Valley, worth USD 83.90 million. Madhesh Province grows fastest at 17.70% a year because Birgunj is one of two sites of a planned Tier IV project.
About USD 6.0 million per MW of IT load for facility systems in 2025, a DC Market Insights estimate excluding land and labor. IT and network equipment adds about USD 2.97 million per MW each year.
Tier 3 is the minimum rating for data centers that store government data under the Data Centre and Cloud Services directives, which took effect on 28 January 2025, according to Ncell. Providers must enroll with the Department of Information Technology.
66.0% of the 5.3 MW of IT capacity added in 2025 came from WorldLink’s Chandragiri facility, a DC Market Insights estimate. Ncell, Nepal Telecom, the Nepal Electricity Authority, Yotta and BLC, and Bichuten Data Vault are the other main players.
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