Establishment of Data Centers in Nepal and Their Impact: Ongoing Debate
June 22, Kathmandu – Recently, the establishment and expansion of data centers in Nepal have sparked widespread debate encompassing policy, economic, and environmental perspectives. The government has prioritized digital infrastructure development and ‘data sovereignty’ through budget allocations and policy directives, making this a highly discussed topic. Environmental and climate protection advocates express concerns about the significant energy and water consumption of data centers and their potential environmental impact. Meanwhile, experts in information technology and economics view data centers as critical infrastructure for Nepal’s economic transformation.
A few days ago, analyst Uttam Babu Shrestha shared a research report from Gallup, emphasizing that the issue of setting up data center networks in Nepal should not be taken lightly. He wrote, “Many in Nepal hope to achieve prosperity quickly by establishing data centers (data farms). However, in the United States, opposition to data centers is increasing alongside strong polls against them.” Shrestha added, “Before advancing major projects, serious debates based on sufficient studies and evidence are necessary. Decisions should not be made impulsively.”
Gallup’s survey reveals that most people oppose data center establishment due to environmental concerns. Seventy-one percent of Americans oppose building data centers in their local areas. Although fewer in number, some Americans support data center construction, primarily citing economic benefits, with 55 percent expecting job creation.
Proponents of data centers in Nepal believe the country can become a competitive digital hub by leveraging its natural advantages and utilizing affordable renewable energy sources. According to Keshav Nepal, CEO of WorldLink, the environmental impact of establishing data centers in Nepal will not be as significant as anticipated. He stated, “We will operate this industry using eco-friendly energy and water generated from our own primary sources.”