UK Firm Proposes $2 Billion AI Data Center Investment in Bangladesh

Bangladesh could be on the verge of a major leap in artificial intelligence infrastructure as a UK-based technology company has proposed investing nearly $2 billion to build the country's first frontier AI data center and quantum-ready sovereign compute campus.

The proposal comes as Bangladesh accelerates efforts to strengthen its AI capabilities amid growing demand for artificial intelligence across industries, education, healthcare, software development, media, and public services. Government officials have confirmed that discussions are underway with multiple international companies from the United Kingdom, Japan, and South Korea regarding potential AI infrastructure investments.

The proposed project, submitted by UK-based company EDIC, aims to establish a state-of-the-art AI data center in an economic zone such as Kaliakair Hi-Tech Park in Gazipur, the Sirajganj Economic Zone, or another suitable location in Bangladesh.

According to the proposal, the facility would help strengthen Bangladesh's digital sovereignty by enabling local storage of critical data, supporting the development of a Bangla Large Language Model (LLM), expanding AI research, and providing high-performance computing infrastructure for government agencies, private enterprises, startups, researchers, and international clients.

Officials say expanding the country's data center infrastructure over the next four to five years is becoming increasingly important as Bangladesh seeks to build an AI-driven digital ecosystem. The government aims to develop public digital infrastructure that will allow innovators, freelancers, startups, and technology companies to create AI-powered applications and services within the country.

ICT Division Secretary Md Mamunur Rashid Bhuiyan said discussions with several countries have already begun regarding AI data center development, although no formal government-approved proposal has yet been finalized.

The investment proposal was submitted by EDIC Chief Executive Officer and AI Infrastructure Architect SM Anisur Rahman, who currently works internationally in AI infrastructure development. He said the project is designed not only to attract foreign direct investment but also to position Bangladesh as an "AI factory" capable of supporting long-term economic growth similar to the country's garment industry.

Under the proposal, the project would be implemented in three phases. The first phase, expected to be completed within 24 months, would establish a 30-50 megawatt frontier AI data center equipped with high-performance computing infrastructure. During the second phase, capacity would expand to between 100 and 200 megawatts, transforming Bangladesh into a regional AI computing hub for South Asia. The final phase would introduce quantum-ready infrastructure while creating a national AI research and innovation ecosystem.

The project also aims to reduce Bangladesh's dependence on foreign cloud infrastructure by allowing data to remain within the country under domestic legal protections. Developers would gain access to local AI computing resources, while the facility could support the creation of advanced Bangla-language AI models.

EDIC estimates that the project could generate more than 10,000 highly skilled direct jobs in AI, engineering, and digital infrastructure, along with over 50,000 indirect employment opportunities across supporting industries, benefiting approximately 60,000 families.


To ensure uninterrupted operations, the proposal includes plans to construct a dedicated 100-megawatt captive power plant, with future expansion options and the integration of renewable energy sources such as solar power. Excess electricity could also be supplied to the national grid.

The company has requested several policy incentives from the government, including recognition of the project as a national priority investment, expedited regulatory approvals, high-capacity power and water connections, advanced submarine cable connectivity, and land allocation within an economic zone.

Industry experts have largely welcomed the growing international interest in Bangladesh's AI infrastructure while emphasizing the need for careful planning. Former BASIS President Fahim Mashroor said foreign investment should be encouraged but stressed that the performance of existing government-funded data centers should be evaluated before committing significant public resources to additional facilities.

Technology experts also highlighted environmental concerns associated with large-scale AI data centers, particularly their high electricity demand and substantial water requirements for cooling systems. Environmental specialists have urged policymakers to prioritize sustainable cooling technologies, renewable energy, and responsible water management to minimize long-term environmental impacts.


EDIC says its proposed facility would use modern liquid cooling and closed-loop cooling systems designed to reduce water consumption while improving energy efficiency. The company also plans to integrate renewable energy wherever practical and ensure compliance with environmental regulations.

As countries around the world race to expand AI computing capacity, Bangladesh's ability to attract large-scale investment in advanced data infrastructure could play a key role in strengthening its digital economy, supporting innovation, and positioning the country as a competitive regional hub for artificial intelligence development.