Data Centers and Cloud Services Are the Backbone of the Digital Economy: CAN Federation

Lalitpur, Poush 5. Senior Vice President of the Computer Association of Nepal Federation (CAN Federation) Chiranjibi Adhikari has said that data centers and cloud services form the real backbone of Nepal’s digital economy, stressing that the country’s digital ambitions cannot be realized without strong and reliable digital infrastructure.

Addressing the ‘CAN B2B Summit 2025’ held in Lalitpur on Saturday, Adhikari said technology has moved beyond being a mere convenience and has become the lifeblood of the modern economy. Without secure data storage and dependable cloud systems, he warned, efforts toward digital transformation would not be sustainable.

Highlighting the need for increased investment in digital infrastructure, Adhikari said cloud services have become indispensable for everyone from startups to large industries. He noted that cloud infrastructure frees entrepreneurs from heavy capital expenditure on servers and security, allowing them to focus on innovation and growth. According to him, a robust cloud ecosystem is essential to translate the growing interest of Nepali youth in e-commerce, fintech, and IT service exports into tangible economic outcomes.

Presenting global trends, Adhikari said the global data center market is projected to exceed USD 602 billion by 2030. He pointed out that countries such as Estonia, Singapore, and India have gained a competitive edge precisely because of their early and consistent investment in digital infrastructure, urging Nepal not to delay in formulating a similar long-term strategy.

Acknowledging existing challenges, Adhikari said Nepal’s digital landscape remains vulnerable in terms of cybersecurity and also suffers from a shortage of skilled manpower. To address these gaps, he proposed a three-point reform agenda. This includes developing clear and investment-friendly laws on data protection, cybersecurity, and data localization; producing market-oriented human resources through closer collaboration between universities and industry; and promoting digital inclusion by effectively utilizing the Telecommunications Development Fund to extend digital transformation beyond Kathmandu to rural areas.

Adhikari also underlined Nepal’s potential to emerge as a regional technology hub in South Asia by leveraging its strategic location. He said the current period is opportune for attracting foreign investment through public–private partnerships, particularly in data centers and cloud infrastructure.

Concluding the summit, Adhikari thanked sponsors, exhibitors, and CAN Federation members at the central, provincial, and district levels for their support. He said only through collective effort and collaboration can Nepal’s technology sector be taken to new heights.