The Asian Development Bank has signed a Memorandum of Understanding (MoU) with the Bangladeshi government for the country’s first green data center.

As reported by the Financial Express, the data center will be operated under a public-private partnership model.

The Posts and Telecommunications Division, Bangladesh Telecommunications Company Limited, and the Public-Private Partnership Authority formed the government organizations that signed the MoU.

Located on a BTCL-owned site near Chattogram, the facility will be powered by renewable energy and will offer colocation services to public and private enterprises, as well as meeting the telco’s internal data storage requirements.

Other specifications have not been shared.

“This initiative marks a significant step toward achieving Bangladesh’s digital vision, integrating cutting-edge technology and sustainable practices to support the country’s digital transformation,” said Hoe Yun Jeong, country director for Bangladesh, Asian Development Bank.

He added that the project will promote private investment in the infotech sector and create opportunities for capital mobilization in digital technology.

A transaction advisory services agreement is set to be signed soon.

Founded in 1966, the Asian Development Bank defines itself as a social development organization, dedicated to reducing poverty in Asia through inclusive economic development, environmentally sustainable growth, and regional integration.

Bangladesh has a minimal colocation market but does have local players including Felicity IDC and Red.Digital.

The government already operates one Uptime Tier IV-certified facility in Dhaka, with government-owned Bangladesh Data Center Company Limited (BDCCL) having equipped all of its data centers with Oracle Cloud Infrastructure in May last year.

In February 2024, Bangladesh's first cloud data center commenced operations. Called Meghna Cloud, the facility is located in the Bangabandhu Hi-Tech City in Kaliakoir, Gazipur, and is a joint venture between BDCCL and Gennext Technologies.

In 2023, Saudi firm DataVolt announced plans to build a data center outside the capital Dhaka. Around the same time, Indian data center firm Yotta also announced plans to expand into Bangladesh.