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Data Centers in Albania

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Albania – Strategic Hub for Balkan Digital Services

Executive Summary

Albania is an emerging market for companies needing a digital infrastructure presence in the Balkan Peninsula. For businesses targeting local consumers or requiring a gateway to Southeastern Europe, establishing a presence here can significantly reduce latency and improve user experience. This is all accomplished while leveraging a national power grid fueled almost entirely by renewable energy.

Albania: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity, but lacks major international hubs.
Direct Cloud On-Ramps0 — as of September 2025Nearest hubs are in Milan or Athens; private connectivity is an option.
Power Cost€0.12-€0.15/kWh — as of September 2025Competitive rates, powered almost entirely by hydroelectric sources.
Disaster RiskLow (2.9/10) — as of September 2025Primary risks are seismic activity and coastal or river flooding.
Tax IncentivesNoNo specific tax incentives are offered for data center development.
Sales Tax20% VAT — as of September 2025Standard Value Added Tax applies to equipment and services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier diversity is limited, with over 2 providers present in the market as of September 2025. This indicates a developing but not yet dense ecosystem. The country has 5 data centers, making carrier-neutral facilities crucial for creating effective interconnection.

Direct Cloud On-Ramps: Direct cloud on-ramps are not yet available in Albania as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network hubs in Milan, Italy, or Athens, Greece. Private network extensions can establish dedicated links to these regions.

Internet Exchange Points (IXPs): The primary local IXP is the Albanian Neutral Internet eXchange (ANIX). It facilitates local traffic exchange and reduces latency for domestic users. Most international peering occurs via upstream providers.

Bare Metal: Bare metal server options are available, typically from regional providers. For broader European deployments, companies like OVHcloud and Leaseweb offer services in nearby hubs.

Power Analysis

Average Cost Of Power: Industrial electricity rates generally fall within the €0.12-€0.15/kWh range, as of September 2025. These competitive power costs can significantly lower operational expenditures for compute-heavy deployments. The grid is sourced almost entirely from renewables, primarily hydroelectric power.

Power Grid Reliability: The national power grid is well-established. However, its heavy reliance on hydropower can lead to seasonal fluctuations, making data center-level UPS and generator backup systems essential for ensuring consistent uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Albania are primarily located in or near the capital, Tirana. This provides low-latency access to the country's main financial, commercial, and government centers.

Regional Market Reach: Albania's strategic position on the Adriatic coast provides a valuable entry point to serve markets across the Balkan Peninsula. This includes Kosovo, North Macedonia, Montenegro, and southern Serbia.

Tax Advantage For Data Centers: Albania does not offer specific tax incentives for data center investment or operation. The standard corporate tax structure provides a predictable financial environment for businesses looking to operate in the country.

Natural Disaster Risk

Albania has a Low overall natural disaster risk profile (2.9/10), as of September 2025. Key environmental considerations for infrastructure planning include:

  • Earthquake: The most significant risk, reflecting high seismic activity in the region.
  • Coastal Flood: A notable risk for facilities located near the Adriatic coastline.
  • Tsunami: A related coastal hazard for the same low-lying areas.
  • River Flood: Poses a risk in certain inland areas and river valleys.
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