Data Centers and Cloud Services: The Backbone of Nepal’s Digital Economy
20th December 2025, Kathmandu
In a rapidly evolving global landscape, the conversation around Nepal’s economic future has shifted from traditional industries to the “oxygen” of the modern age:
Data Centers and Cloud Services in Nepal
Digital Infrastructure. During the recently held CAN B2B Summit 2025 in Lalitpur, Chiranjibi Adhikari, Senior Vice President of the Computer Association of Nepal (CAN) Federation, delivered a powerful message that Nepal’s digital dream depends entirely on the strength of its data centers and cloud services.
Why Data Centers and Cloud Services Matter for Nepal
For a landlocked nation like Nepal, the digital world offers a “borderless” economy. However, this economy cannot function without a place to store, process, and protect data.
As Adhikari emphasized, data centers and cloud infrastructure are no longer luxury services for IT firms; they are the fundamental pillars for every sector, from agriculture and education to high-end fintech.
1. Empowering Startups and SMEs
One of the biggest hurdles for Nepali entrepreneurs is the high cost of entry into the market. Physical servers and hardware security require massive capital. Cloud services change the game by:
Reducing Capital Expenditure (CapEx): Startups can “rent” computing power instead of buying it.
Scalability: Businesses can grow their digital presence instantly as their customer base expands.
Global Connectivity: Reliable cloud systems allow Nepali youth to export IT services, a sector that is already showing massive potential.
2. Tapping into a $602 Billion Global Market
The global data center market is projected to surpass $602 billion by 2030. Countries like Estonia, Singapore, and India have already set benchmarks by investing heavily in their digital backbones. For Nepal to remain competitive in South Asia, Adhikari argues that the nation must shift its strategy toward becoming a regional “Tech Hub.”
The 3-Point Reform Roadmap for Digital Nepal
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To turn this vision into reality, the CAN Federation has proposed a targeted three-pillar strategy:
I. Policy Reform & Data Localization
Nepal needs clear, investment-friendly laws. This includes Data Localization policies—ensuring that sensitive data of Nepali citizens remains within the country’s borders. Strong cybersecurity laws will also build trust for foreign investors looking to use Nepal as a data outsourcing destination.
II. Bridging the Skills Gap
Technology is only as good as the people running it. There is an urgent need for Industry-Academia collaboration. Universities must align their curricula with the demands of the 2025 tech market to produce a workforce skilled in cloud architecture, AI, and cybersecurity.
III. Digital Inclusion Beyond Kathmandu
Digital transformation should not be limited to the capital. By effectively utilizing the Rural Telecommunication Development Fund (RTDF), the government can ensure that high-speed connectivity and digital services reach the most remote corners of Nepal, fostering a truly inclusive digital economy.
Conclusion: The Path to a ‘Tech Hub’
The CAN B2B Summit 2025 served as a wake-up call for stakeholders. Nepal’s strategic location between two tech giants, India and China, provides a unique opportunity to serve as a neutral, high-altitude data haven.
By prioritizing Public-Private Partnerships (PPP) and focusing on secure, local cloud infrastructure, Nepal can transition from being a consumer of global tech to a provider of regional digital solutions.
“Our collaboration is the only way to take the Nepali technology sector to new heights,” – Chiranjibi Adhikari, Senior VP of CAN Federation.
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