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AI data center can be built in Nepal using hydropower and cold climate

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An AI data center can be built in Nepal using hydropower and cold climate

Kathmandu. Experts say that Nepal can develop the necessary data center for artificial intelligence (AI) by harnessing the potential of hydropower generation and cold climate. They suggest that Nepal should use energy and geographical location as a competitive advantage as the use of AI is expanding worldwide.

Experts participating in the international session of the third National AI Conference organized by Digital Media Foundation in Kathmandu on Saturday said that Nepal should explore the possibility of investing in AI infrastructure development.

In the session on ‘The New AI Landscape: Global Shifts, Nepal’s Strategic Choices’, former professor at the University of York, UK and CEO of WiseAcac, Prof. Dr. Suresh Manandhar said that Nepal’s hydropower potential can be linked to AI infrastructure development.

According to him, a large amount of electricity is required to operate an AI data center. Since there is a possibility of hydropower generation in Nepal, it can be used for data center development. However, he said that the main challenge will be to ensure uninterrupted power supply throughout the year for the data center. “To operate a Tier-1 or Tier-2 level data center, up to

99.999 percent service availability is required,” he said, “Even if there is a 100 MW hydropower project in Nepal, the production will be limited to 10 MW in the winter, and the capacity of the data center to be operated throughout the year should also be determined accordingly.” He said that the power generation capacity alone is not enough for the development of the data center and attention should also be paid to the continuity and reliability of the supply. He said that it would be difficult to operate a large capacity AI data center without managing the seasonal fluctuations of electricity generated from hydropower projects.

Manandhar proposed that the government should set up an AI data center that would provide free access to university and college students.

He hopes that this will help in research, technology development and production of skilled manpower.

Dr.

Peter Brimble, Chairman of the Board of AI Asia Pacific Institute in Singapore. Peter Brimble also said that power, data and digital infrastructure are important for AI infrastructure development. He suggested that developing countries can develop infrastructure through regional and international partnerships rather than competing with large investments alone.

According to him, with the expansion of AI technology, the demand for data center electricity is increasing rapidly. Therefore, Nepal needs to prioritize regional cooperation and technology sharing by harnessing its energy potential. Experts say that AI Data Center should not only be seen as a technology infrastructure but also should be linked to Nepal’s hydropower usage, foreign investment attraction, research and expansion of digital economy.

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