Huawei has signed a Letter of Intent with Nepal Telecom to construct a primary data center in Kathmandu and a disaster recovery center in Bhairahawa, Nepal. The project, valued at NPR 484 million ($3.5 million), is aimed at modernizing Nepal Telecom’s data handling capabilities and improving service efficiency.
Huawei will oversee the physical infrastructure of the data center, which will become a key element in Nepal Telecom’s efforts to enhance its operations. The facility is expected to provide income-generating opportunities for the telecom company, which has faced declining revenues in recent years.
Hari Dhakal, a spokesperson for Nepal Telecom, emphasized that the new data center will be instrumental in delivering more efficient services. However, specific details regarding the facility and the overall deal were not disclosed.
Huawei’s involvement in building data centers in various countries aligns with its commitment to aiding digital transformation globally. In addition to Nepal, Huawei has partnered with Algeria and Pakistan for similar projects. The Chinese tech giant has also been advocating for telcos to prepare for an AI-driven future, with a focus on 5G rollouts.
Nepal is home to various data center operators, including Cloud Himalaya, DataHub, and the facilities of telcos Ncell and Subisu. Last year, Indian operator Yotta and Nepal’s BLC also partnered to build a new data center outside Kathmandu.