Best Data Center & Digital Infrastructure Lawyers in Phnom Penh

About Data Center & Digital Infrastructure Law in Phnom Penh, Cambodia

Phnom Penh, Cambodia is experiencing rapid digital transformation, making data centers and digital infrastructure critical components of the nation’s economic growth. Data centers, which house servers and networking equipment, support online services, cloud storage, and enterprise IT solutions. Digital infrastructure comprises fiber-optic cables, wireless networks, and technology platforms that facilitate data transmission and connectivity. The legal landscape around these sectors is evolving as Cambodia strengthens its regulatory frameworks to attract investment, ensure cybersecurity, protect personal data, and support sustainable digital growth.

Why You May Need a Lawyer

Legal assistance is vital in the complex and regulated field of data centers and digital infrastructure. Common situations that often require legal expertise include:

• Negotiating contracts for data center construction, leasing, or co-location services
• Navigating compliance requirements for data privacy, cybersecurity, and digital operations
• Securing necessary permits or licenses from local authorities
• Managing intellectual property, including software and hardware licensing
• Handling cross-border data transfer and cloud service agreements
• Resolving disputes between service providers, clients, or government agencies
• Interpreting laws related to foreign ownership and investment in digital infrastructure
• Addressing security breaches or incidents impacting data integrity and privacy

Local Laws Overview

Cambodia’s legal framework for data centers and digital infrastructure is developing, with a mixture of specific laws, government regulations, and general provisions that impact operations in Phnom Penh:

• Law on Telecommunications (2015): Governs telecommunications providers and infrastructure, requiring registration and licensing with the Ministry of Posts and Telecommunications (MPTC).
• Sub-Decree on Management of Internet and Network Operations (2021): Sets requirements for ISPs, data hosting, and the use of national internet gateways.
• Draft Law on Cybercrime (pending): Expected to shape rules for cybersecurity, data protection, and the responsibilities of tech infrastructure operators.
• Prakas and regulations by MPTC: Cover the technical, operational, and reporting requirements for digital service providers, including data retention, security standards, and lawful interception.
• Investment Law and related sub-decrees: Outline incentives, foreign ownership restrictions, and permit processes relevant to building or operating digital infrastructure.
• General data protection principles: While Cambodia does not yet have a comprehensive data protection law, certain regulations govern the use and transfer of personal information, especially in sectors such as banking and telecommunications.

It is crucial to remain up to date with regulatory developments, as compliance requirements may change quickly as Cambodia updates its digital policies.

Frequently Asked Questions

What licenses are needed to operate a data center in Phnom Penh?

You generally need a Telecommunications Operations License from the Ministry of Posts and Telecommunications. Depending on your services, additional permits for construction, electricity, and environmental compliance may also be required.

Can foreign investors own and operate data centers in Cambodia?

Yes, Cambodia allows 100 percent foreign ownership in most sectors, including data centers, subject to registration and compliance with investment laws and specific regulations overseeing digital infrastructure.

What are the main data privacy regulations in Cambodia?

Cambodia does not yet have a comprehensive data protection law, but certain sectoral regulations, such as for telecommunications and financial services, contain data privacy provisions. A draft personal data protection law is under discussion.

Do data centers have to store data in Cambodia?

Some regulations require that certain types of data, especially those related to telecommunications or critical information, be stored locally. Specific requirements may depend on the sector and government instructions.

What are the cybersecurity obligations for data center operators?

Operators must implement reasonable security measures to protect data and maintain network integrity. They may be required to report incidents, facilitate lawful data interception, and follow technical standards issued by the MPTC.

Is it necessary to sign service level agreements (SLAs) or contracts?

Yes, having clear SLAs and contracts helps manage expectations, allocate liability, define service parameters, and minimize risks between data center providers and their customers.

What penalties apply for non-compliance?

Non-compliance can result in fines, suspension or revocation of licenses, and possible civil liability. Severe offenses may trigger criminal penalties, especially in cases of data breaches or illegal operations.

How do I register my digital infrastructure company?

Businesses must first register with the Ministry of Commerce and then with the Ministry of Posts and Telecommunications for relevant licenses. Additional local permits for construction or technical operations may be necessary.

Are there restrictions on cross-border data transfers?

Cambodia has limited restrictions currently, but critical information, such as telecommunications and some government-related data, should often be stored or processed locally according to sectoral rules.

How can I resolve disputes involving digital infrastructure?

Disputes can be resolved through negotiation, mediation, or Cambodian courts. Arbitration may be an option if agreed upon in contracts. Assistance from lawyers with technology sector experience is highly recommended.

Additional Resources

If you require more information or assistance, the following organizations and government bodies can be helpful:

• Ministry of Posts and Telecommunications (MPTC): Regulator for digital infrastructure and telecommunications
• Ministry of Commerce: Company registration and business licensing
• Cambodia Data Center Association: Industry body for data center operators
• Cambodia Investment Board (CIB): Guidance for foreign investment procedures
• National Institute of Posts, Telecoms and ICT: Training and sector information
• Local law firms with technology and investment practice groups

Next Steps

If you need legal assistance in the field of data center and digital infrastructure in Phnom Penh, consider these steps:

• Identify your specific needs, such as licensing, compliance, or contract drafting
• Consult an experienced lawyer specializing in telecommunications, digital infrastructure, and Cambodian law
• Gather your business and technical documentation before any consultation
• Stay updated on the evolving regulatory environment by following announcements from the MPTC and related agencies
• Evaluate potential legal partners based on relevant sector expertise and local knowledge

Expert legal guidance can help you navigate local laws, avoid pitfalls, and set your data center or digital infrastructure project on a firm and compliant foundation in Cambodia.