Nepal Tech Budget 2025: NPR 740M For Digital Infrastructure & Data Centers
29th May 2025, Kathmandu
In a significant move set to revolutionize Nepal’s digital landscape, the government has announced an allocation of NPR 740 million for the development of digital infrastructure and ecosystem in the upcoming fiscal year 2082/83.
Nepal Tech Budget 2025
This substantial budget, unveiled by Finance Minister Bishnu Prasad Paudel, signals a strong commitment to fostering a robust digital economy and attracting vital foreign investment in the burgeoning information technology sector.
A New Era of Digital Infrastructure
The cornerstone of this allocation is the strategic focus on data center development. Minister Paudel declared that new data centers would be constructed and operated through innovative public-private partnerships.
This collaborative approach aims to leverage the expertise and resources of both sectors, accelerating the deployment of critical infrastructure essential for a thriving digital ecosystem.
Further bolstering the nation’s tech capabilities, an IT park will be established in Kathmandu, creating a dedicated hub for technology companies, innovation, and talent development.
This initiative is expected to foster a vibrant tech community, encouraging local entrepreneurship and attracting international players.
Mid-Hill Region: A Strategic Hub for Data Centers?
In a forward-looking move, the budget also includes a plan for a feasibility study to establish a data center in the mid-hill region. This strategic decision not only aims to decentralize digital infrastructure but also to explore new avenues for attracting foreign investment in the information technology sector. The mid-hill region, with its unique geographical advantages, could offer an ideal environment for secure and sustainable data center operations.
Attracting Global Tech Investment: Incentives on Offer
To truly propel Nepal onto the global tech stage, the government is rolling out an attractive package of incentives for companies looking to establish data centers within the country. Minister Paudel emphasized that both domestic and foreign companies willing to establish data centers will be provided with essential resources, including land, uninterrupted electricity, and robust security.
This commitment to providing a supportive environment underscores the government’s determination to make Nepal a preferred destination for data center investment.
Key Takeaways for Businesses and Investors:
Significant Government Investment: NPR 740 million dedicated to digital infrastructure and ecosystem.
Public-Private Partnership Model: Opportunities for collaboration in data center construction and operation.
Kathmandu IT Park: A new hub for tech innovation and business.
Mid-Hill Data Center Potential: Explore new strategic locations for data centers.
Attractive Incentives: Land, uninterrupted power, and security for data center investors.
This ambitious budget allocation marks a pivotal moment for Nepal’s digital future. By prioritizing digital infrastructure, fostering strategic partnerships, and offering compelling incentives, the government is laying the groundwork for a truly transformative era of technological growth and economic development.
Businesses and investors in the IT sector should closely watch these developments as Nepal positions itself as an emerging digital powerhouse in the region.
For more: Nepal Tech Budget 2025
