Power outages felt in ICT sector

The ongoing power and fuel crisis is increasingly affecting Bangladesh’s information and communication technology (ICT) sector, raising operating costs for technology companies and creating concerns over the uninterrupted operation of data centres, software firms, IT-enabled services and telecom infrastructure.

Frequent power outages, gas shortages and higher costs of diesel are forcing ICT businesses to rely more heavily on generators and backup power systems. Industry insiders say the impact is particularly severe for small and medium-sized enterprises that cannot afford expensive backup arrangements.

Former Bangladesh Association of Software and Information Services (BASIS) President Syed Almas Kabir told the Daily Observer that almost all devices used in the ICT sector depend on electricity and cannot function properly without uninterrupted power supply.

“Almost all types of devices in the ICT sector run on electricity. If there is no electricity, these devices cannot be kept operational and normal activities cannot continue. As a result, the power and fuel crisis is affecting both the local market and export-oriented businesses,” he said.


“If we genuinely want to make the economy digital, we must ensure uninterrupted power supply,” Almas said. “If data centres have to run on generators, the cost of doing business rises significantly. This increases operating costs and reduces competitiveness in the international market.”

He added that higher production and operating costs caused by the power and fuel crisis were also affecting the country’s ICT service exports.

The impact of the crisis, however, is not uniform across the sector. Fahim Mashroor is the Chief Executive Officer (CEO) and co-founder of Bdjobs.com, said the ICT sector has not yet faced a major direct disruption from the power crisis because most ICT companies do not directly use gas in their operations.

He said most ICT companies are concentrated in Dhaka, where load-shedding is comparatively lower, while many companies also have their own generators.

“Companies can continue their operations using alternative power arrangements when electricity goes out,” he said.

However, companies outside Dhaka are facing greater difficulties, he said, mentioning Rajshahi, Khulna and Sylhet, where a significant number of ICT companies operate.

“Load-shedding is higher in these areas. Companies are running their operations with generators, but generators have fuel costs. So, although their operations are continuing, their costs are increasing,” he added.

According to him, the power crisis will not immediately affect ICT exports, but higher operating expenses will put pressure on companies’ profitability.

“Exports will not be affected, but it will affect companies’ profitability because their costs will increase,” he said.


The situation is particularly critical for data centres. Any prolonged disruption can potentially affect multiple digital services simultaneously. The Mobile Phone Operators Association of Bangladesh (AMTOB) said in April that important data centres, switching facilities and transmission hubs were regularly being operated on backup generators because of power shortages. According to the association, around 27,196 litres of diesel were being used daily at data centres and switching hubs.

The additional cost includes not only diesel but also generator maintenance, batteries and UPS systems. As a result, companies face higher costs beyond their regular electricity bills.

The power crisis has also been linked to gas shortages. A CPD report published in July said load-shedding increased significantly in April and June, reaching 27,589 megawatts in June. Fuel shortages for power generation, difficulties in financing imports, plant maintenance and extreme heat were identified among the major factors.

On August 13, the government took further measures to conserve electricity, while reports indicated that load-shedding in some areas reached as high as 12 hours.

Industry entrepreneurs fear that prolonged energy uncertainty could discourage new investment in the ICT sector. Although skilled manpower is crucial for software and IT-enabled services, reliable electricity, high-speed internet and dependable data infrastructure are equally important.


The crisis could also weaken Bangladesh’s competitiveness in the international IT services market. Delays caused by power outages can result in lost working hours and make it difficult for companies to meet deadlines set by international clients.Entrepreneurs therefore fear that a prolonged power and fuel crisis could undermine Bangladesh’s competitiveness against countries such as India, Vietnam and the Philippines.

They have called for technology infrastructure to be treated as critical infrastructure and for uninterrupted electricity to be ensured for data centres and other important IT facilities. They also suggested special power connections, reliable backup fuel supplies and incentives for renewable energy use. Industry stakeholders, meanwhile, say the expansion of Bangladesh’s digital economy depends not only on internet connectivity and skilled workers but also on reliable electricity and energy supplies. Without that foundation, they warn, investment, employment and exports in the ICT sector could all face increasing risks.