Data Centres, Cloud & Digital Infrastructure in Bangladesh

by Barrister Tahmidur Rahman | Sep 13, 2026

Technology, IP & DataInfrastructure that holds up legally8 min read

Data Centres, Cloud & Digital Infrastructure in Bangladesh

Legal advice on data centres, cloud services and digital infrastructure in Bangladesh: site acquisition and leases, power and connectivity, colocation and cloud contracts, regulatory interfaces with the BTRC and Bangladesh Bank, personal data rules, and investment by foreign and local operators and lenders.

Overview

Our approach to data centres and cloud projects in Bangladesh

Demand for local hosting, cloud capacity and resilient connectivity in Bangladesh keeps growing, driven by banks, telecom operators, government digitisation, e-commerce and software exporters. Data centres sit where property, power, telecommunications, technology contracts and data regulation meet, and a weakness in any one of those layers can undermine the whole project. We advise developers, operators, hyperscale and regional cloud providers, investors and enterprise customers on the legal structure behind each facility and service. This work forms part of our technology, IP and data practice in Bangladesh, and draws on our real estate and finance teams.

A facility project starts with land and power. We review title, mutation and encumbrance records for the site, structure leases or purchases, and advise on locations inside hi-tech parks, export processing zones and economic zones. The Bangladesh Hi-Tech Park Authority continues to operate separately and can offer incentives for technology businesses, while foreign investment registration now runs through Invest Bangladesh, which took over the functions of BIDA, BEZA and the PPP Authority on 23 August 2026. Power supply agreements, backup generation, fuel storage, fire safety and environmental clearance all affect whether data centres can open on time and run reliably.

Connectivity in Bangladesh is a licensed space. International bandwidth, nationwide transmission, internet services and interconnection are regulated by the BTRC through separate licence categories, so operators of data centres need to understand which licensed carriers they can connect to, what services they may provide themselves and where a licence or partnership is needed. We map those interfaces early, review carrier and cross-connect arrangements, and advise on carrier-neutral models. Where a facility is linked to submarine cable or cross-border terrestrial capacity, we review the relevant capacity agreements and the terms on which that capacity can be resold or shared.

Cloud and colocation contracts decide who carries risk. We draft and negotiate master services agreements, colocation and hosting terms, service level schedules, acceptable use policies and exit plans. For regulated customers such as banks, financial institutions and insurers, contracts must also reflect Bangladesh Bank and other sector expectations on outsourcing, audit access, data location and business continuity. The Personal Data Protection Act 2026 adds rules on processing and cross-border transfer of personal data, and we advise cloud providers and their customers on how those rules affect hosting and contracts. Exit terms should cover data return and migration assistance.

Investment and financing questions run through every stage. We advise on joint ventures between local groups and foreign operators, acquisitions of existing facilities, sale and leaseback structures, equipment finance and foreign currency borrowing. Barrister Tahmidur Rahman leads our work on transactions, finance and investment, and we work with counsel in the UK, US, UAE, China, India and Singapore where sponsors, lenders or customers sit abroad. Whether you are planning new data centres, buying capacity or moving workloads to the cloud, our Dhaka office can arrange an initial discussion of the structure and the main legal risks and next steps.

01 · What we handle

Core workstreams

  • Site, land and permits
  • Power and resilience arrangements
  • Connectivity and BTRC interfaces
  • Colocation and cloud contracting
02 · How it runs

Four clear stages

  1. 01Scoping the project
  2. 02Structuring and approvals
  3. 03Contracts and documentation
  4. 04Operation and growth
03 · Start here

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How we help

What we handle

Workstream 01Technology, IP & Data

Site, land and permits

  • Scoping the project
  • Structuring and approvals
  • Contracts and documentation
  • Operation and growth
Workstream 02Technology, IP & Data

Power and resilience arrangements

  • Scoping the project
  • Structuring and approvals
  • Contracts and documentation
  • Operation and growth
Workstream 03Technology, IP & Data

Connectivity and BTRC interfaces

  • Scoping the project
  • Structuring and approvals
  • Contracts and documentation
  • Operation and growth
Workstream 04Technology, IP & Data

Colocation and cloud contracting

  • Scoping the project
  • Structuring and approvals
  • Contracts and documentation
  • Operation and growth
Workstream 05Technology, IP & Data

Regulated customers and data rules

  • Scoping the project
  • Structuring and approvals
  • Contracts and documentation
  • Operation and growth
Workstream 06Technology, IP & Data

Transactions and investment

  • Scoping the project
  • Structuring and approvals
  • Contracts and documentation
  • Operation and growth
01

Site, land and permits

We conduct title and encumbrance due diligence, negotiate land purchases and long leases, and advise on zone allocation inside hi-tech parks, export processing zones and economic zones. We coordinate building approvals, fire licences, environmental clearance and utility connections, and build realistic conditions precedent and long-stop dates into development and construction documents so that delays in permits do not leave the sponsor carrying unmanaged risk. Site risk is flagged early.

02

Power and resilience arrangements

Data centres depend on stable power. We review supply agreements with distribution utilities, captive generation and rooftop solar arrangements, fuel supply for backup generators and battery storage contracts. We also align redundancy promises in customer contracts with what the facility can actually deliver, so that uptime commitments, maintenance windows, outage notices, service credits and force majeure clauses reflect the real engineering and supply position on the ground.

03

Connectivity and BTRC interfaces

We analyse which BTRC licence categories are relevant to a facility or cloud service, whether the operator or a licensed partner must provide each service, and how carrier-neutral models can be structured. We draft and review cross-connect, dark fibre, bandwidth, transit and interconnection agreements, and advise on regulatory questions raised by shared infrastructure, international gateways, content delivery arrangements and capacity resale. Each arrangement is checked against licence terms.

04

Colocation and cloud contracting

We prepare and negotiate colocation, hosting, managed service and cloud agreements for providers and customers in data centres across Bangladesh. Key terms include capacity reservation, power density, access rules, service levels, security obligations, data location, sub-processing, audit rights, suspension, price adjustment, foreign currency payment and exit, including migration assistance and return or deletion of customer data at the end of the term. Standard terms are adapted for each market.

05

Regulated customers and data rules

Banks, insurers, mobile financial services providers and government bodies face particular rules on outsourcing, data location and audit. We help providers adapt standard terms for these customers and help customers obtain approvals or file notifications where required. We also advise on the Personal Data Protection Act 2026, including processor obligations, cross-border transfer conditions and how contracts allocate responsibility for incidents and data subject requests. Templates are refreshed as rules change.

06

Transactions and investment

We act on acquisitions, joint ventures and minority investments in data centres, tower and fibre businesses and cloud service providers. Our work covers due diligence on title, licences, customer contracts and power arrangements, transaction documents, foreign investment registration with Invest Bangladesh, repatriation of profits and fees, and financing, including equipment leasing, foreign loans and security over facility assets and customer receivables. Exit routes are planned from the start.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Technology, IP & Data matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

Meet the firm →
01

Do we need a licence to build and operate data centres in Bangladesh?

There is no single licence that covers every activity. Building and running a facility requires the usual company, trade licence, building, fire and environmental approvals, and location inside a hi-tech park or zone brings that authority's rules into play. Telecommunications services are licensed separately from the facility itself. Providing international bandwidth, nationwide transmission, internet access or certain interconnection services generally requires a BTRC licence or a partnership with a licensed operator. Operators of data centres therefore need a clear map of which services they provide directly and which they procure from licensed carriers. We prepare that map early.

02

Can a foreign company own and operate data centres in Bangladesh outright?

Bangladesh is generally open to foreign ownership of technology and infrastructure businesses, and foreign investors can establish a subsidiary and register the investment with Invest Bangladesh. Restrictions may apply to particular telecommunications licence categories, where BTRC rules can limit foreign shareholding or require local participation, so the answer depends on which services the business will provide. Land ownership by a foreign-owned company also needs care. Many sponsors use a local subsidiary that holds leases and contracts, with licensed services provided through partners. We advise on ownership structures that fit the business plan and regulatory limits for data centres.

03

Does Bangladeshi law require customer data to be stored inside the country?

There is no blanket rule for all data, but localisation questions arise in several places. The Personal Data Protection Act 2026 sets conditions on processing and on transferring personal data abroad, and implementing rules may add detail. Bangladesh Bank and other sector regulators have their own expectations for banks, financial institutions and payment providers, including where core records are kept and how regulators can access them. Government bodies may also impose hosting requirements in procurement. We review the data involved, the customer's sector and the cloud design to identify which rules apply and how contracts should address them.

04

What should a colocation agreement for data centres in Bangladesh cover?

A colocation agreement should describe the space, rack and power allocation precisely, including power density, cooling and any options to expand. It should set access and security procedures, maintenance windows and notice requirements, service levels with clear measurement and credits, and limits on liability. Other important points include price adjustment for power and currency movements, insurance, customer equipment ownership, suspension rights, subcontracting, regulatory change and exit. Customers in data centres should also check what happens if the operator loses its lease, power connection or a key licence. Define how power usage is metered and billed.

05

How should cloud and hosting contracts deal with outages and service failures?

Outage clauses should match the actual architecture. A contract that promises very high availability while relying on a single power feed or carrier route creates disputes later. We look at how availability is measured, which events are excluded, how quickly incidents must be reported, what service credits apply and whether credits are the customer's only remedy. Force majeure clauses should be specific about grid failures, cable cuts and government shutdowns, which have all affected connectivity in Bangladesh. For critical workloads, customers may also need disaster recovery commitments, regular testing and the right to terminate after repeated failures.

06

Can a bank in Bangladesh use public cloud services hosted in data centres abroad?

Banks can use cloud services, but Bangladesh Bank expects careful risk management. Its ICT and outsourcing guidance addresses governance, due diligence on providers, data security, business continuity and the regulator's ability to access information. Some systems and records may be expected to remain in Bangladesh, and certain arrangements may need prior engagement with or approval from Bangladesh Bank. The Personal Data Protection Act 2026 adds its own transfer conditions for customer data. We help banks and cloud providers structure arrangements, prepare regulatory submissions where needed and negotiate terms that satisfy supervisors without making the service unworkable.

07

What due diligence should an investor carry out on existing data centres?

Start with the fundamentals: who owns or leases the land, whether the lease term and renewal rights match the investment horizon, and whether building, fire and environmental approvals are in place. Then review power supply contracts and backup arrangements, carrier connections and any BTRC licences, major customer contracts, service level performance and outstanding disputes. Tax, VAT and foreign exchange compliance matter, particularly where revenue is earned in foreign currency. Employment, security and data protection arrangements also need checking. For data centres, we design diligence around the risks that most affect value and continuity. Site visits often reveal practical issues.

08

How are disputes over data centres and cloud services usually resolved?

Most disputes start with service failures, unpaid invoices, price changes or exit and migration problems. Contracts should include a clear escalation process and a forum suited to the parties. Arbitration under the Arbitration Act 2001, or at an international seat, is common for cross-border agreements because awards are enforceable under the New York Convention. Purely local disputes may go to court, including the commercial courts being established under the Commercial Courts Act 2026. Interim relief can be important where a provider threatens suspension or a customer refuses to remove equipment. We advise on dispute clauses and act when disputes arise.

How a matter runs

From first call to resolution.

  1. 01

    Scoping the project

    We review the business plan, site options, intended services and customer base, identify the licences, approvals and regulatory interfaces involved, and agree a legal workplan and timetable that matches the construction and commercial programme. We also identify early risks.

  2. 02

    Structuring and approvals

    We advise on the ownership structure, foreign investment registration, zone or park allocation and any BTRC or sector approvals, then prepare applications and coordinate with authorities, utilities and carriers so that approvals arrive in the right order.

  3. 03

    Contracts and documentation

    We draft and negotiate land, construction, power, connectivity, equipment and customer contracts, ensuring that service promises, liability caps, data obligations and exit terms are consistent across the whole contract stack. That consistency reduces disputes later.

  4. 04

    Operation and growth

    Once the facility or service is live, we support renewals, new customers, expansions, regulatory changes, financing and disputes, and periodically review standard terms against the Personal Data Protection Act 2026 and sector guidance relevant to data centres.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

Do you advise both operators and customers of data centres?
Yes, subject to conflict checks. We act for developers and operators of data centres, cloud and hosting providers, carriers, investors and lenders, and for enterprise and public sector customers buying capacity or services. Acting for different sides of the market helps us understand what terms are realistic and where negotiations usually focus, although on any single matter we act for one party only and protect that party's interests fully. Our advice covers both new data centres and established facilities.
Can data centres be located in an export processing zone or hi-tech park?
Yes, subject to the rules and approval of the relevant authority. Hi-tech parks are managed by the Bangladesh Hi-Tech Park Authority, export processing zones by BEPZA, and economic zones now fall under Invest Bangladesh. Each offers different incentives, land terms, utility arrangements and restrictions on selling into the domestic market. We compare options for the specific business model, customer base and expansion plans, and support the application. Lease terms and service charges inside zones also need careful review.
Who regulates cloud services and hosting providers in Bangladesh?
No single regulator covers cloud computing as a whole. The BTRC regulates telecommunications and internet services, Bangladesh Bank sets rules for regulated financial customers, and the Personal Data Protection Act 2026 governs personal data. Government procurement rules and cyber security legislation may also apply. The relevant combination depends on the service and the customer, and we identify it for each project, including any approvals that must be obtained. Cloud services delivered from data centres abroad raise further questions. We also monitor regulatory developments.
How are payments to foreign cloud providers handled in Bangladesh?
Payments abroad for cloud services must comply with foreign exchange rules and banking procedures, and may attract withholding tax and VAT, including VAT on services supplied from outside Bangladesh. Documentation requirements for remittances can be detailed. We advise customers and providers on contract wording, invoicing structures and tax treatment so that payments can be made smoothly and the remitting bank has what it needs to process each transfer. Transfer pricing may also matter for group arrangements.
Can we use renewable energy to power data centres in Bangladesh?
Increasingly, yes. Options include rooftop solar, captive generation, and supply arrangements under the government's renewable energy and net metering frameworks, which continue to develop. Each option has different approval, grid connection and contractual implications. We review power purchase and equipment agreements, land and permit issues and how renewable supply interacts with backup generation and the reliability commitments given to customers in their contracts. Sustainability commitments to customers should be drafted cautiously and accurately. Certificates or supplier statements should back any renewable sourcing claim before it appears in customer contracts.
What happens to customer data when a cloud contract ends?
That depends on the contract, so the exit clause matters. A good agreement sets out how long data remains available after termination, how it will be returned and in what format, migration support and its cost, and how and when data will be deleted with confirmation. Data protection law may also require secure deletion. We negotiate practical exit terms and help customers plan transitions before the contract expires. Data held in third-party data centres needs particular attention.
Do you work with engineers and technical consultants on facility projects?
Yes. Legal documents for data centres must reflect engineering reality, so we work with the client's technical advisers, design consultants and operators on power, cooling, security and resilience specifications. We do not certify facilities or give engineering opinions, but we make sure contracts, service levels and warranties accurately record what the technical team has agreed and what can genuinely be delivered. That alignment avoids later disputes over performance, warranties and responsibility.
How long does it take to set up a data centre project legally in Bangladesh?
Timelines depend heavily on the site, the approvals needed and whether the project sits inside a park or zone. Land due diligence, utility connections and licence questions are often the longest steps. We prepare a realistic legal timetable at the start, identify approvals that can run in parallel and flag items that could delay commissioning, so that the commercial programme rests on achievable dates. Early planning usually saves months later in the programme.

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