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Data Centers in Albania

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Albania – Strategic Digital Gateway for the Western Balkans

Albania provides an emerging digital crossroads for Southeast Europe, offering a high-uptime environment powered by a nearly 100% renewable energy grid. For enterprises targeting the Balkan Peninsula, this market serves as a cost-effective and resilient alternative to traditional European hubs while maintaining low-latency paths to Mediterranean cable systems.

Albania: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable regional paths to Italy and Greece.
Direct Cloud On-Ramps0 – as of September 2025Connectivity via private extensions to Sofia or Milan.
Power Cost$0.14/kWh – as of September 2025Dominated by hydroelectric generation.
Disaster RiskLow (2.9/10) – as of September 2025Seismic activity is the primary natural concern.
Tax IncentivesNo – as of September 2025Standard corporate tax framework applies.
Sales Tax20% VAT – as of September 2025Consistent national value-added tax rate.

Network & Connectivity Ecosystem

Albania’s infrastructure is maturing to support increasing regional traffic and digital transformation.

Carrier Density & Carrier Neutrality: The market features a carrier count of over 10 as of September 2025. While the provider landscape is concentrated, Tirana is home to neutral facilities that allow for diverse routing and peering among domestic and international telcos.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in Albania as of September 2025. Local deployments typically reach major platforms like AWS, Google Cloud (GCP), or Microsoft Azure through private network interconnects or wavelength services to regional hubs in Sofia or Milan.

Internet Exchange Points (IXPs): The Albanian Neutral Internet Exchange (ANIX) acts as the primary peering point in Tirana, reducing local latency by keeping domestic traffic within the country as of September 2025.

Bare Metal: Bare metal services are available through regional providers and global players like Hivelocity, supporting high-performance workloads without the overhead of virtualization as of September 2025.

Power Analysis

Albania offers a distinctive power profile characterized by its heavy reliance on sustainable sources.

Average Cost Of Power: Industrial electricity is approximately $0.14/kWh as of September 2025. The grid is notably green, with a mix consisting of 98% renewables, primarily hydroelectricity. This sustainability profile helps enterprises meet ESG goals while maintaining predictable operational costs.

Power Grid Reliability: The electrical infrastructure in major Tirana data center corridors is well-engineered with redundant substation support. Grid modernization efforts continue to improve stability for mission-critical facilities as of September 2025.

Market Access, Business & Tax Climate

Albania provides a stable jumping-off point for businesses looking to scale across the Adriatic and Balkan regions.

Proximity To Key Business Districts: Data centers are primarily located near Tirana, the nation’s economic and political core. This proximity ensures low-latency access for the financial, government, and telecommunications sectors that drive the local economy.

Regional Market Reach: From a central Albanian location, providers can effectively serve the Western Balkans and parts of Southern Europe, reaching a population of several million with competitive latency as of September 2025.

Tax Advantage For Data Centers: Enterprises benefit from a predictable fiscal environment that avoids the high overhead found in Western European Tier 1 markets. The standard tax framework provides stability for long-term infrastructure investments without unexpected levies.

Natural Disaster Risk

Albania maintains a Low (2.9/10) overall risk rating as of September 2025. Infrastructure planning must account for specific natural hazards typical of the Balkan geography.

  • Earthquake (8.3/10): This is the most significant natural risk, requiring purpose-built seismic structural engineering for any facility as of September 2025.
  • Coastal Flood (7.4/10): Primarily a regional risk for maritime areas; Tirana-based facilities remain largely insulated from direct impact.
  • Tsunami (6.8/10): Indirect risk limited to the coastline, with negligible impact on inland data center clusters as of September 2025.
  • River Flood (4.6/10): A moderate risk that requires site-specific mitigation and proper drainage management as of September 2025.

Other natural hazards, such as drought and tropical cyclones, are considered minor as of September 2025.

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