Nepal to Build Its First Tier IV Hyperscale Data Centers with 5MW Combined Capacity
May 8, 2026
Nepal to Build Its First Tier IV Hyperscale Data Centers with 5MW Combined Capacity
Nepal is set to enter the ranks of high-availability data center markets with the announcement of two facilities that will together offer up to 5MW of capacity, marking the country’s first Tier IV hyperscale data centers. The development signals a significant step for Nepal’s digital infrastructure, which has historically been limited to smaller, regionally clustered facilities.
Bichuten Data Vault, a Nepalese data center company, revealed the plans on May 7, stating that the two data centers will be located in the capital city of Kathmandu and in Birgunj, a city approximately 130 kilometers south of Kathmandu. According to a report by Nepalkhabar, the facilities will launch with an initial combined capacity of 240kW and are expected to scale to 5MW by 2030. The company has not disclosed the individual capacity of each data center.
A key feature of the project is its commitment to sustainability. Bichuten said the facilities will be powered exclusively by Nepalese hydroelectric power. According to the International Energy Agency, nearly all of Nepal’s electricity is generated from hydropower, giving the data centers a strong renewable energy profile from the outset.
Bichuten’s broader footprint in Nepal includes projects in the southern Lumbini Province, two sites near Kathmandu, one in Koshi Province, and another in central Gandaki Province. However, it remains unclear whether these are operational facilities or future development plans. Most of Nepal’s existing data centers are concentrated around Kathmandu, with competitors including Ncell, AccessWorld, and Dataspace, according to Data Center Map.
The announcement positions Bichuten at the forefront of Nepal’s emerging data center market, offering Tier IV reliability—a designation that ensures fault tolerance and high uptime—in a region where such infrastructure is rare. As demand for cloud services and data localization grows across South Asia, the expansion of hyperscale capacity in Nepal could attract both domestic enterprises and international cloud providers seeking low-carbon, reliable data center options.
Source: datacenterdynamics
