Feasibility study of colocation data center in Bangladesh

Abstract

In Bangladesh, most of the organizations are having own data center which requires a lot of resources to maintain it and as such is not cost effective. In the colocation data center, the service provider provides the service of infrastructure, however, the servers and software are provided by the user. Very little information has been found regarding the colocation data center in Bangladesh till today. Only Colocity and Coloasia have started recently colocation data center service in Bangladesh. This study mainly focuses on exploring the financial feasibility of establishing a colocation data center in Bangladesh. The result of analysis found positive with NPV greater than 0; IRR above 22%; Payback Period 3 Years 1.3 Months and Discounted Payback Period is 4 Years 8 Months. The colocation data center can also come into a benefit for the environment as it will reduce carbon emission by reducing the required power consumption of individual data centers.