Nepal Could Develop AI Data Centres Using Hydropower and Cool Climate, Experts Say

KATHMANDU: Nepal could develop data centres for artificial intelligence (AI) by utilising its hydropower potential and cool climate, experts have said. As AI adoption expands worldwide, they have suggested that Nepal should use its energy resources and geographical conditions as competitive advantages.

The experts made the remarks during an international session at the Third National AI Conference, organised by the Digital Media Foundation in Kathmandu on Saturday. They said Nepal should explore investment opportunities in AI infrastructure.

Speaking at a session titled ‘The New AI Landscape: Global Shifts’, Nepal’s Strategic Choices, Professor Dr Suresh Manandhar, former professor at the University of York in the United Kingdom and chief executive officer of WyzJack, said Nepal could link its hydropower potential with the development of AI infrastructure.

AI data centres require large amounts of electricity, he said, adding that Nepal’s hydropower resources could support their development. However, ensuring an uninterrupted electricity supply throughout the year would remain a major challenge.

“Operating a Tier 1 or Tier 2 data centre requires service availability of up to 99.999 per cent,” Manandhar said. “If a 100-megawatt hydropower project in Nepal sees its output fall to 10 megawatts during winter, the capacity of a data centre operating throughout the year must be determined accordingly.”

He said electricity generation capacity alone would not be sufficient for data centre development. The continuity and reliability of power supply would also need to be addressed. Operating large-scale AI data centres would be difficult without managing seasonal fluctuations in hydropower generation, he added.

Manandhar also proposed that the government establish an AI data centre offering free access to university and college students. Such a facility, he said, could support research, technology development and the production of skilled human resources.

Dr Peter Brimble, board chair of the AI Asia Pacific Institute in Singapore, also highlighted electricity, data and digital infrastructure as essential elements for AI development.

She suggested that developing countries could build AI infrastructure through regional and international partnerships rather than attempting to compete through large-scale individual investments.

According to Brimble, electricity demand from data centres is rising rapidly alongside the expansion of AI technology. Nepal therefore needs to make use of its energy potential while prioritising regional cooperation and technology partnerships, she said.

The experts said AI data centres should be viewed not only as technology infrastructure but also in terms of their potential links with hydropower utilisation, foreign investment, research and the expansion of Nepal’s digital economy.