Bangladesh Cloud Computing 2020: Data Centers and Cloud Service Market
Bangladesh Cloud Computing 2020 Overview
Bangladesh's cloud computing market reached approximately $120M in 2020, with growth accelerated by the government's "Digital Bangladesh" vision and the rapid expansion of remote work driven by COVID-19. National Data Center (NDC) construction, a Cloud First policy, and private data center investment are all gaining momentum, while global cloud providers such as AWS, Azure, and GCP are beginning to enter the market.
Bangladesh's cloud market is projected to grow at 28% annually from $120M in 2020 to reach $420M by 2025. Corporate cloud adoption remains low at 15%, but SaaS and IaaS demand is surging, led by garment, financial services, and e-commerce firms. Korean companies including 코리아텔레콤, NAVER Cloud, and Korea SDS are exploring cooperation opportunities in both government e-Gov cloud and the private sector.
$120M
Cloud Market
2020 estimate
28%/yr
Growth Rate
2020–2025 forecast
$420M
2025 Target
3.5x growth
15
Commercial Data Centers
Privately operated
4
Government NDCs
ICT Division operated
15%
Corporate Adoption Rate
Target: 40% by 2025
3,000/yr
IT Talent Gap
Demand 5,000 vs. supply 2,000
5x remote work
COVID-19 Effect
Cloud demand accelerated
Government Cloud and National Data Centers
Led by the ICT Division, Bangladesh has built and operates four National Data Centers (NDCs), progressively migrating e-government services to cloud infrastructure. The Kaliakair NDC, rated Tier-III, is among the largest in Southeast Asia and hosts more than 2,000 government websites. The government is pursuing a "Cloud First" policy targeting a complete ministerial migration to cloud by 2025.
Government Data Center Status (2020)
Facility
Location
Tier
Capacity
Purpose
Investment
NDC-1
Kaliakair
III
120 Racks
e-Government and portals
$50M
NDC-2
Jessore
II
40 Racks
Regional services
$15M
NDC-3
Rajshahi
II
30 Racks
DR and backup
$10M
NDC-4
Sylhet
II
30 Racks
Regional services
$10M
e-Gov Cloud
Virtual infrastructure
-
2,000+ sites
IaaS for government agencies
$20M
Private Cloud and Data Center Market
In the private sector, telecom operators (Grameenphone, Robi, Banglalink) offer enterprise cloud services, and local data center operators are growing. As garment, financial services, and e-commerce firms accelerate cloud adoption, SaaS and IaaS demand is surging. AWS made a significant market entry move in 2020 by adding a Bangladesh edge location.
Local Cloud Providers
Grameenphone CloudEnterprise IaaS and SaaS — 1,200+ corporate customers
Robi EnterpriseIntegrated IoT, cloud, and security services
Summit CommunicationsOperates 2 Tier-III data centers
Brain Station 23SaaS development and subscription HR/ERP
DataSoftCloud-based e-Gov solutions for government agencies
Global Cloud Providers Entering Bangladesh
AWSEdge location added in 2020; startup credit program launched
Microsoft AzureOffice 365 expanding across government and enterprise — 100K+ users
Google CloudGoogle Workspace partnerships with education and startups
Alibaba CloudLinked to e-commerce and logistics; supporting Chinese firms
Future OutlookGlobal providers expected to hold 40% market share by 2025
Adoption Status and Key Constraints
Corporate cloud adoption stands at approximately 15% — relatively low. Data sovereignty regulations, internet speed, and power reliability are the primary constraints. The government targets 40% corporate cloud adoption by 2025, pursuing data protection legislation alongside infrastructure investment in parallel.
01
Internet Speed Improvement
Average download speeds of 30 Mbps must scale to dedicated enterprise lines at 100 Mbps. International bandwidth is expanding through undersea cables (SEA-ME-WE-4, SEA-ME-WE-6), but last-mile quality improvement remains a key challenge.
02
Power Reliability
Frequent power outages make UPS and generator backup mandatory for data centers, with electricity costs accounting for 30% of total data center operating expenses. A stable power supply system combining solar and gas generation is being developed.
03
Data Sovereignty Regulations
With data protection legislation still underdeveloped, mandatory local storage requirements for cloud data are under discussion. The Digital Security Act, expected to be enacted in 2021, may require cloud providers to establish local points of presence.
04
IT Talent Shortage
Annual demand for cloud specialists stands at 5,000, against a supply of only 2,000 — a severe shortage. Support for cloud certifications (AWS SAA, Azure) is needed through partnerships between BTEB and Korean IT education institutions.
05
Cybersecurity Capability
Security threats are growing alongside the expansion of cloud adoption. Strengthening cloud security capabilities at CERT-BD and enterprise security teams, and adopting Zero Trust architecture, are the core challenges through 2025.
Korean Cloud Firm Cooperation Opportunities
Korean Cloud Firm Bangladesh Entry Analysis by Sector
Sector
Demand
Korean Firms
Cooperation Mode
Expected Revenue
e-Gov Cloud
Ministerial migration
코리아텔레콤, NAVER Cloud
ODA-linked implementation
$5M
Enterprise SaaS
ERP, HR, collaboration tools
Douzone, Groupware
SaaS localization
$3M
Security Services
Cloud security
코리아SK Shieldus, NSHC
Security solution export
$2M
AI + Cloud
MLOps and AI inference
Korea SDS, Korea CNS
Technology transfer and JV
$4M
Data Centers
DC infrastructure
Korea C&T, Korea E&C
EPC consortium
$10M
Bangladesh Cloud Computing — Four-Stage Development Path
Infrastructure Buildout
NDC and data center expansion; internet bandwidth and power stabilization
→↓
Government Cloud Migration
e-Gov Cloud First policy; migration of 2,000+ government sites
→↓
Private Sector Expansion
SaaS adoption by garment, financial, and e-commerce firms; corporate adoption reaching 40%
→↓
Multi-Cloud Maturity
AI and IoT integration; $420M market achieved; international data center hub status
Short-Term Entry Strategy (2020–2022)
Top Prioritye-Gov Cloud — reduce initial costs through ODA linkage