ISO 27001 Policies for Data Centers in Nepal: Meeting National Directives

As Nepal’s digital infrastructure grows, data centers have become critical assets supporting the nation’s technological advancement. The government, recognizing their importance, has established the Data Center and Cloud Service Directive (2025) to regulate operations, ensure security, and promote high standards across the sector.

For data center operators in Nepal, achieving compliance with these directives while implementing international best practices presents both challenges and opportunities. ISO 27001, the global standard for information security management systems, offers a comprehensive framework that aligns remarkably well with Nepal’s regulatory requirements.

This article explores how data centers in Nepal can implement ISO 27001 policies that address both international security standards and the unique requirements of Nepal’s regulatory environment.

Understanding Nepal’s Data Center Context

Nepal’s data centers operate within unique geographical, infrastructural, and regulatory parameters that significantly influence security considerations:

Geography & Environmental Factors

• Seismic Risk: Nepal’s location in a high earthquake zone necessitates specialized infrastructure planning for data centers.
• Monsoon Season: Seasonal flooding risks require robust environmental controls and water damage prevention measures.
• Altitude Variations: Different elevations across the country affect cooling requirements and system performance.

Infrastructure Realities

• Power Reliability: Fluctuating power supply makes robust backup systems essential for continuous operations.
• Connectivity: Limited network redundancy in certain regions poses challenges for service availability.
• Supply Chain: Extended lead times for equipment affect maintenance planning and spare parts management.

Regulatory Framework

• Data Center Directive (2025): The primary regulation governing data center operations, registration, and tier ratings.
• Individual Privacy Act (2018): Establishes data protection requirements for personal information.
• Electronic Transactions Act 2063 (2008): Covers digital transactions and cybercrime provisions.
• NTA Guidelines: Additional requirements for telecommunications infrastructure.

Key Requirements of Nepal’s Data Center Directive

The Data Center and Cloud Service Directive (2025) establishes several critical requirements for data centers operating in Nepal:

1. Registration and Tier Certification: All data centers must register with the Department of Information Technology and meet specific tier certification standards.

2. Security and Privacy Policies: Formal documentation of security practices, with annual security audits.

3. Access Control Systems: Restricted access to server areas, comprehensive visitor logging, and physical security measures.

4. Business Continuity Planning: Tier-based requirements for power backup, disaster recovery, and service continuity.

5. CCTV Surveillance: Minimum 3-month retention of security footage.

6. Incident Reporting: Mandatory reporting of security breaches and compliance with Computer Emergency Response Team (CERT) protocols.

7. Data Protection: Compliance with the Individual Privacy Act and proper data handling procedures.

ISO 27001 Policy Framework for Nepali Data Centers

Implementing an ISO 27001-compliant Information Security Management System (ISMS) provides a structured approach to meeting the Directive’s requirements. The following ten essential security policies align with both ISO 27001 and Nepal’s regulatory expectations:

1. Information Security Policy

Purpose: Establish information security commitment aligned with ISO 27001 and Nepal’s Data Center Directive.

Key Elements:

• Management statement demonstrating leadership commitment
• Objectives covering confidentiality, integrity, and availability
• Clearly defined roles and responsibilities, including the Compliance Officer position required by Nepali regulations
• Regular review procedures
• Explicit reference to Nepal’s Security and Privacy Policy requirements

Nepal Context: The directive mandates formal Security and Privacy Policies with annual security audits. Your policy should explicitly reference these requirements.

2. Access Control Policy

Purpose: Define how access is granted, managed, and revoked to protect systems and data per Nepal’s Access Control Systems requirements.

Key Elements:

• Role-based access control following least-privilege principles
• Comprehensive user lifecycle management
• Multi-factor authentication requirements
• Physical access controls including biometrics
• CCTV systems with 3-month minimum retention
• Visitor logging systems

Nepal Context: The directive mandates Access Control Systems for server areas with authorized personnel only and comprehensive physical security measures.

3. Data Protection and Privacy Policy

Purpose: Ensure data handling complies with ISO 27001 and Nepal’s Individual Privacy Act, 2018.

Key Elements:

• Data classification framework
• Consent requirements aligned with Nepali law
• Encryption standards for data in transit and at rest
• Procedures for handling data subject rights
• Staff awareness and training programs
• Data transfer controls

Nepal Context: The Individual Privacy Act is explicitly referenced in the Data Center Directive as a compliance requirement. Monitor additional privacy regulations from the Ministry of Communication and Information Technology.

4. Physical Security Policy

Purpose: Protect physical infrastructure from unauthorized access, environmental threats, and natural disasters.

Key Elements:

• Perimeter security controls
• Mantrap entry systems for critical areas
• Environmental controls for fire, temperature, and humidity
• Seismic reinforcements meeting tier requirements
• Regular maintenance and inspection schedules
• 24/7 surveillance systems

Nepal Context: Special consideration for earthquake protection, monsoon preparedness, and power backup requirements according to facility tier level. The directive specifically requires physical access controls with CCTV systems maintaining 3-month recording retention.

5. Incident Management Policy

Purpose: Establish procedures for detecting, reporting, and responding to security incidents.

Key Elements:

• Incident classification framework
• Reporting procedures aligned with CERT requirements
• Defined response team structure
• Forensic investigation protocols
• Analysis and lessons learned process

Nepal Context: The directive requires CERT reporting and forensic investigation protocols for security incidents.

6. Business Continuity & Disaster Recovery Policy

Purpose: Ensure critical services can continue or be recovered promptly after disruptions.

Key Elements:

• Business impact analysis methodology
• Recovery time objectives by service type
• Tier-based power backup systems
• Regular testing and validation
• DR site requirements

Nepal Context: The directive requires business continuity planning with specific tier-based requirements for power backup systems and disaster recovery capabilities.

7. Change Management Policy

Purpose: Control changes to systems, applications, and infrastructure in a way that minimizes risk.

Key Elements:

• Change request and approval process
• Impact assessment methodology
• Testing requirements before implementation
• Rollback procedures
• Documentation requirements

Nepal Context: Infrastructure changes must be documented and registration updates submitted when significant modifications occur.

8. Acceptable Use Policy

Purpose: Define appropriate use of information systems and assets.

Key Elements:

• Clear guidelines on permitted activities
• Prohibited actions and consequences
• Email and internet usage rules
• Mobile device provisions
• Remote access requirements

Nepal Context: The directive includes customer service obligations and equal access provisions that should be reflected in this policy.

9. Vendor Management Policy

Purpose: Manage security risks associated with third-party providers and suppliers.

Key Elements:

• Security requirements for vendor selection
• Contract requirements including security provisions
• Performance monitoring procedures
• Regular security assessment of vendors
• Incident response coordination

Nepal Context: The directive requires documentation of Internet Service Provider (ISP) and Network Service Provider (NSP) relationships and formal service agreements.

10. Data Retention & Disposal Policy

Purpose: Establish guidelines for secure retention and disposal of information.

Key Elements:

• Retention periods by data type
• Secure storage requirements
• Authorized disposal methods
• Media sanitization standards
• Verification procedures

Nepal Context: The directive specifies data destruction requirements and backup retention standards that must be incorporated.

Implementation Roadmap for Nepali Data Centers

For data centers seeking to implement ISO 27001 while complying with Nepal’s directives, we recommend the following approach:

Phase 1: Assessment and Planning

1. Regulatory Gap Analysis: Evaluate current practices against the Data Center Directive requirements.
2. ISO 27001 Readiness Assessment: Identify gaps between current controls and ISO 27001 requirements.
3. Risk Assessment: Conduct a comprehensive risk assessment considering Nepal’s unique threat landscape.
4. Implementation Planning: Develop a roadmap prioritizing critical compliance gaps.

Phase 2: Policy Development

1. Core Policy Framework: Develop the ten essential policies outlined above.
2. Supporting Procedures: Create detailed procedures for each policy area.
3. Documentation Standards: Ensure all policies explicitly reference Nepali regulatory requirements.
4. Bilingual Documentation: Prepare key documents in both English and Nepali as recommended by regulators.

Phase 3: Implementation

1. Physical Controls: Implement required physical security measures, including CCTV systems.
2. Technical Controls: Deploy access control systems, encryption, and monitoring tools.
3. Procedural Controls: Implement operational procedures and staff training.
4. Documentation: Complete the required ISMS documentation for both ISO certification and regulatory submission.

Phase 4: Certification and Registration

1. Internal Audit: Conduct a thorough internal assessment of the ISMS.
2. Management Review: Ensure leadership approval of the security program.
3. ISO 27001 Certification: Undergo formal certification

Free Resource: ISO 27001 Playbook for Nepali Data Centers

You’ve read about aligning ISO 27001 with Nepal’s Data Center and Cloud Service Directive, 2081 (2025). Now, take the next step!

To help data centers like yours kickstart their compliance journey, Adinovi has developed a practical playbook tailored to implementing ISO 27001 under this directive, considering Nepal’s unique operational context. It’s a practical, no-cost way to begin mapping out your implementation.

Want to discuss further? Join the conversation on our LinkedIn post here.

Adinovi offers specialized ISO 27001 certification services tailored for data centers. Contact us at support@adinovi.com or call +977 9808838226 to discuss how we can help you achieve both regulatory compliance and improved security.