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Data Centers in Albania

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Albania – Gateway to Western Balkan Digital Markets

Albania is a strategic choice for enterprises seeking resilient, renewable-powered infrastructure to serve Southeast Europe. By leveraging its unique hydroelectric grid and proximity to Mediterranean cables, businesses achieve low-latency performance and high uptime at a fraction of Tier 1 costs.

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 stable hydroelectric generation.
Disaster RiskLow (2.9/10), as of September 2025Seismic activity is the primary structural concern.
Tax IncentivesNo – as of September 2025Standard corporate framework applies without specific exemptions.
Sales Tax20% VAT, as of September 2025Consistent national value-added tax rate.

Network & Connectivity Ecosystem

Albania serves as an emerging digital crossroads for the Balkan Peninsula. The infrastructure is maturing to support regional traffic demands and digital transformation for local and international firms.

Carrier Density & Carrier Neutrality: The market features a carrier count of over 10 as of September 2025. Tirana hosts neutral facilities that allow for diverse routing and peering among domestic and international telcos, ensuring reliable path diversity.

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. It reduces 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. These services support 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 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 effectively serve the Western Balkans and parts of Southern Europe. This reaches 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 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 accounts for specific natural hazards typical of the Balkan geography.

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

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

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