Enlistment of Data Centers and Cloud Service in Nepal (2026)
- Background:
To encourage the secure and confidential storage of data through the use of information technology, and to make the information technology system reliable, secure, and effective through the listed Data Centers and Cloud Services and their management, the Government of Nepal has formulated the Data Center and Cloud Service (Operation and Management) Directives, 2081 (2024) (“Directives“) under Section 79 of the Electronic Transactions Act, 2063 (2008) (“Act“). This Article outlines the definitions, enlistment procedures, document requirements, and the renewal process for enlisted entities.
- Governing Authority:
The following authority governs the enlistment of the Data Centers and Cloud Services:
a. Department of Information Technology. (“Department” or “DoIT“)
- Terminology:
As per the Directives, the following terms have been defined as:
a.Cloud service
The Cloud Service means hardware and software-integrated infrastructure prepared by a data center service provider or other entity to operate (host) information technology systems developed by the government, public, and private sectors.
b.Data Center
The Data Center means a center with the necessary infrastructure for the storage of data and the operation of information technology systems by the government, public, and private sectors.
c.Data
The Data means a formal representation of information, knowledge, or instructions in the form of letters, numbers, images, sounds, or audio-visuals that are being formally prepared or have been prepared for its use in a computer, computer system, or computer network, or produced by a computer, computer system, or computer network.
- Procedures for an enlistment of Cloud Service and Data Center:
To enlist the Cloud Service and Data Center following procedures are required to be followed:
Step 1: Registration of the Company with an objective of Cloud Service and Data Center at the Office of Company Register (“OCR“) or Registration of the firm at the Office of Industry and Commerce.
Step 2: Tax registration at the Inland Revenue Office (“IRO”).
Step 3: Enlistment of Cloud Services and Data Centers at the Department.
Required documents for the enlistment Cloud Services and Data Centers:
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- a. Application;
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- b. Company or firm registration certificate;
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- c. Security and Privacy Policy;
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- d. Details of the technical personnel involved in the operation of the Cloud Services;
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- e. Documents related to the Business Continuity Plan;
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- f. Location map of the data center of the Cloud Service;
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- g. Agreement with the data center;
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- h. Details regarding affiliation with ISP/NSP;
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- i. Details of IP Pool available in own name; and
j. Certificate relating to Information Security Related Standard and Information Technology Service Management Standard for the cloud services listed in the data center within the last six months.
B. Required documents for the enlistment of the Data Center in Nepal are as follows:
- Application;
- Company or firm registration certificate;
- Assurance of fire safety;
- Building completion certificate;
- Security and Privacy Policy;
- Documents related to the Business Continuity Plan;
- Map of the location where the data center shall be located;
- Details regarding the Tier of the data center;
- Details of the technical personnel involved in the operation of the data center;
- Details of the methods and procedures adopted for the physical security of the data center;
- Details of the IP Pool available in its name;
- High-level electrical design;
- Lease agreement (if the premises are rented): and
- Information Security Related Standard for both DC and DR within six months of being listed.
6. Renewal of the Cloud Service and Data Center
Cloud Service Provider and Data Center Operators shall renew their enlistment details at the Department by the end of Poush (Dec/Jan) every year.
7. Infrastructures and arrangements required to be managed by the Cloud Service and Data Center
The basic infrastructures and arrangements required to be managed by the Cloud Service Provider and Data Center Operators are as follows:
a. If Hard Disks need to be destroyed, arrangements are made so that data cannot be recovered.
b. Appropriate server racks for housing servers;
c. Availability of network equipment such as Firewalls, Routers, and Switches;
d. Availability of Server and Storage Devices for data storage;
e. Proper arrangement of HVAC (Heat, Ventilation, and Air Conditioning);
f. Proper arrangement for fire safety, including Fire Extinguishers;
g. Arrangements for sufficient and regular availability of internet and electricity;
h. Availability of an IP Pool in the name of the data center operator;
i.Arrangement of an Access Control System at the server location of the data center;
j. Arrangement of personnel related to the physical security of the data center;
k.Proper arrangement of Closed-Circuit Television (CCTV) in the data center, and arrangement for Data Center Infrastructure Monitoring;
l. Arrangement of a Network Operation Center (NOC) for regular monitoring of Network Equipment such as Firewalls, Routers, and Switches;
m.Proper arrangement of Security Devices as needed for the security of data stored in the data center;
n. Arrangement for Colocation of customers’ servers for data storage;
o. Arrangement for regular backup of stored data;
p. Technical personnel who have gained certification or are experienced in relevant fields;
q. Arrangement for authorized personnel only to enter the server location;
r. Arrangement for keeping records of visitors to the data center;
s. Arrangement for Closed Circuit Television (CCTV) data storage for at least three months prior;
8. Tier rating of the Data Center in Nepal.
Data Center shall be classified as a tier rating based on the physical infrastructure and services as
follows:
| Tier | Tier 1 | Tier 2 | Tier 3 | Tier 4 |
| Features to be included | ||||
| Distribution path Power and Cooling | 1 | 1 | 1 active/ 1 alternative | 2 active |
| Redundant Active Component | N | N | N+1 | 2 (N+1) |
| Redundancy Backbone | No | No | Yes | Yes |
| Redundancy Horizontal Cabling | No | No | No | Optional |
| UPS/Generator | Optional | Yes | Yes | Dual |
| Concurrently Maintainable | No | No | Yes | Yes |
| Fault Tolerant | No | No | No | Yes |
| Availability (uptime within year) | 99.67% | 99.749% | 99.982% | 99.999% |
| Downtime (a year) | Less than 28.8 hrs | Less than 22 hrs | Less than 1.6 hrs | Less than 26.3 min |
| Power backup (in case of electricity breakage) | 12 hours | 12 to 24 hours | 24 to 48 hrs | 48 hrs |
Yes, both Cloud Service and Data Center in Nepal can be established by the Foreign Investor through the approval of Foreign Direct Investment (“FDI”) from the Automatic Route.
