Data Centers in Nepal

Introduction:

A data center is a facility designed to house computer systems and associated

components, such as telecommunications and storage systems. It provides an environment with a

controlled temperature, humidity, and power supply to protect and maintain the equipment and

systems that store, process, and distribute large amounts of data. Data centers are used by

organizations to centralize their IT operations and store and manage their critical data and

applications. They may also provide cloud computing, colocation, and disaster recovery services.

Data centers are important for storing and managing large volumes of data, ensuring

business continuity, providing scalability, ensuring security, and improving energy efficiency.

They provide a centralized and secure location for critical data and systems, and their

redundancy and backup solutions minimize downtime during outages or disasters. Additionally,

data centers are designed to be scalable, allowing businesses to adjust their resources to meet

changing needs easily. The high levels of security measures in data centers help protect against

unauthorized access, theft, and other threats. Furthermore, data centers are built with energy

efficiency in mind, helping to reduce the environmental impact of IT operations.

For a country like Nepal, data centers can help to drive digital transformation, promote

economic growth, and improve the quality of life for its citizens. Nepal is an emerging market

with a rapidly growing ICT sector, and data centers can provide the necessary infrastructure to

support this growth. By storing and managing large volumes of data, data centers can help

businesses to make informed decisions, improve their operations, and provide better services to
their customers. Additionally, data centers can help to attract international businesses looking for

low-cost data center solutions, creating job opportunities and boosting the economy. Improved

digital infrastructure can also help to bridge the digital divide in Nepal and provide better access

to services such as healthcare and education. Therefore, data centers are crucial for Nepal's

development and future prosperity.

Literature Review:

Due to Nepal being a developing country, its IT infrastructure is still in the early

stages of development, Data Centers are a relatively new topic in Nepal so there are not much

research conducted in detail about Data Centers in Nepal and their condition. However, that

being said there are some reports, articles, and a few research on this topic that shed light on the

condition of Data Centers in Nepal.

In 2022, Ghimire et al. provided an overview of the current status of data centers in

Nepal. It concludes that the data center industry in Nepal is still in its early stages of

development. There are only a few data centers in Nepal, and they are mostly located in

Kathmandu Valley. The main challenges facing the data center industry in Nepal include a lack

of investment, a lack of skilled manpower, and a lack of reliable power supply. The government

of Nepal is taking steps to address these challenges, and it is expected that the data center

industry in Nepal will grow in the coming years.

In 2021 Khanal examined the role of data centers in Nepal's economic development. It

argued that Data centers can play a significant role in promoting economic growth and job

creation in Nepal. Data centers can attract foreign investment, create jobs in the IT sector, and

boost the development of other sectors such as e-commerce and cloud computing. The

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government of Nepal should promote the development of data centers by providing incentives to

investors and by improving the legal and regulatory framework.

In 2020, Gautam and Adhikari conducted research on the effect on the environment of

Nepal due to data centers and they found that data centers can have a significant negative impact

on the environment, such as increased energy consumption, water consumption, and air

pollution. The government of Nepal should take steps to mitigate the environmental impact of

data centers, such as requiring data centers to use renewable energy, recycle water, and reduce air

pollution.

In 2018, a study was conducted by the Nepal Telecommunications Authority (NTA) to

assess the current status and potential growth of data centers in Nepal. The study found that there

was a limited number of data centers in the country, with most of them located in the Kathmandu

Valley. Furthermore, the study identified various barriers hindering the development of data

centers in Nepal, including a shortage of skilled personnel, insufficient access to financial

resources, and a lack of comprehensive legal and regulatory frameworks.

In conclusion, although there is a scarcity of literature on data centers in Nepal, the

existing studies highlight the importance of data centers in the country's IT infrastructure and

bring attention to the obstacles that need to be overcome to facilitate their growth.

History of Data Centers in Nepal:

The history of data centers in Nepal is short but is growing rapidly. As Nepal is rapidly

developing in the field of IT and Computers more data centers are being made as time goes on.

The first data center in Nepal was established in 2011 by Access World Tech Pvt. Ltd. This data

center was located in Kathmandu Valley and provided colocation services to businesses and

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government agencies. In 2012, Data Hub was established. Data Hub is a colocation and cloud

computing provider that also offers managed IT services. Data Hub is located in Kathmandu

Valley and has multiple data centers in the region. In 2013, Ncell established its own data center.

Ncell is a telecommunications company that provides mobile and fixed-line services in Nepal.

The Ncell data center is located in Kathmandu Valley and provides services to Ncell customers

as well as other businesses and government agencies.

The first government-owned data center in Nepal Government Integrated Data

Center(GIDC) was established in 2014 by the Ministry of Communication and Information

Technology. It was formed with the Ministry of Communication and Information Technology, the

Government of Nepal, the United Nations Development Programme (UNDP), the Government

of Japan, the World Bank, and the Asian Development Bank.

Data Centers of Nepal:

1) GIDC(Government Integrate Data Center): GIDC is without a doubt the

leading hosting service provider in Nepal. One and only one government data

center in Nepal to date. It is a government-owned server that hosts government

website portals, MIS, and others. It was set up with the collaboration of the Korea

International Cooperation Agency(Koica) and World Friends Korea in 2008 AD.

Nepal Government has this primary data center inside the Ministry of Home

Affairs(गह
ृ मन्त्रालय) in Singha Durbar. Disaster Recovery Site is located in

Hetauda and this site is established with the aim to increase the security and

availability of government and citizens' data.

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2) Data Hub: Data Hub is Nepal's first private Data Center built with international

standards. Data Hub is a Tier 2 Data Center located on the 2nd floor, Shikhar Biz

Center, Thapathali, Kathmandu, and was founded in 2011 AD. It is owned and

operated by Data| Hub. It provides co-location, hosting, and premium data-center

facilities for BFIs, Enterprises, ICT Companies, INGO, NGOs, and Corporate

House. It provides services like co-location services, disaster recovery, data, and

network security, 24/7 support, business continuity, and a host of other managed

services along with customized facilities that meet specific business and customer

needs.

3) DataSpace: Dataspace is Nepal's first neutral co-location data center. Dataspace is

not owned or operated by any single provider and has a fiber optical connection

from multiple providers.WorldLink Communication, Nepal Telecom, Websurfer,

Mercantile Communication, and Subisu Cablenet are the providers of internet

bandwidth to dataspace clients.

4) Ncell Data Center in Kathmandu: The Ncell data center in Kathmandu is the

largest and most advanced of the four data centers. It was built in 2015 and has a

capacity of 200 racks. The data center is powered by renewable energy and is

equipped with the latest security features. It is used to store and process data for

Ncell's customers and partners.

5) Cloud Himalayan Pvt Ltd : Cloud Himalaya is the largest Tier-4 Data Center in

Nepal, accommodating the entire country’s public and private sector data for the

next five years.

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Conclusion:

The development of data centers in Nepal has been driven by the increasing demand for

digital services and the rapid growth of the country's IT sector. As a reliable and secure storage

and hosting solution, data centers are playing a pivotal role in Nepal's fast-expanding IT industry,

catering to the needs of businesses, organizations, and government agencies.