Huawei has entered a partnership with Nepal Telecom to construct a new data center in Nepal. This project, valued at NPR 484 million (approximately $3.5 million), will include a primary facility in Kathmandu and a disaster recovery center in Bhairahawa, located 265 kilometers from the capital.
Key Features of the Data Center Deal
Huawei will oversee the physical infrastructure of both data center locations. The primary facility, based in Kathmandu, is set to enhance Nepal Telecom’s capabilities in data handling and service delivery. The disaster recovery center in Bhairahawa will provide an additional layer of resilience and redundancy for the telecom operator’s critical operations.
Importance of the Data Center to Nepal Telecom
This new data center is a pivotal part of Nepal Telecom’s modernization efforts. According to Hari Dhakal, a spokesperson for Nepal Telecom, the facility will support the company’s shift towards more efficient data management systems, enabling improved service delivery for customers. The infrastructure upgrade is seen as a crucial step in positioning the state-owned telecom for the future.
Potential for Revenue Generation
While details of the deal remain limited, Dhakal suggested that the data center could serve as a source of income for Nepal Telecom. The operator has faced revenue declines in recent years, partly due to increased competition since the market’s liberalization in 2003, when United Telecom became the first private operator in the country.
Huawei’s Ongoing Global Data Center Partnerships
Huawei has been actively involved in building data centers worldwide. For example, the company has previously partnered with the Algerian government and the National Bank of Pakistan for similar infrastructure projects. Huawei’s push to modernize telecoms through AI-ready data centers aligns with its broader strategy of advancing 5G rollouts and digital transformation globally.
Data Center Landscape in Nepal
Nepal’s data center market is growing, with several key players establishing facilities in the region. According to DataCenter Map, local operators such as Cloud Himalaya and DataHub are active in the market, alongside telecommunications providers like Ncell and Subisu. Additionally, Indian data center operator Yotta has partnered with Nepal’s BLC to build a new facility outside Kathmandu.
The Future of Telecoms and Data Centers in Nepal
The move by Nepal Telecom to modernize its infrastructure is part of a broader regional trend where telecom companies are increasingly relying on advanced data center technology to remain competitive. As AI, 5G, and edge computing drive the future of telecom services, investments in modern data infrastructure will be key to staying ahead.
FAQ Section
1. What is the value of Huawei’s data center project with Nepal Telecom?
The project is valued at NPR 484 million (approximately $3.5 million).
2. Where will the new data centers be located?
The primary data center will be in Kathmandu, while the disaster recovery center will be located in Bhairahawa, about 265 kilometers away.
3. How will the new data centers benefit Nepal Telecom?
The data centers will modernize Nepal Telecom’s data handling systems, improve service efficiency, and potentially generate revenue.
4. Who is overseeing the construction of the data center?
Huawei will be responsible for building and managing the physical infrastructure of the data centers.
5. How does this project fit into global trends in telecom?
The project aligns with the growing global trend of telecoms investing in modern data infrastructure to support AI, 5G, and digital transformation initiatives.