Data Centers in Albania

Albania – Strategic Balkan Connectivity Point

Executive Summary

Albania is an emerging data center market ideal for businesses seeking a strategic entry point into the Balkans. Its low natural disaster risk profile and highly renewable power grid offer a stable, cost-effective location for serving local and regional customers. This market provides a solid foundation for companies looking to expand their digital footprint in Southeastern Europe.

Albania: At A Glance

Network & Connectivity Ecosystem

Albania's connectivity landscape is developing, offering essential infrastructure for regional operations. The market is defined by its concentrated carrier environment and reliance on international transit to major European hubs.

Carrier Density & Carrier Neutrality: The market features two primary service providers, as of September 2025. While carrier-neutral facilities exist, the ecosystem is less dense than in larger European countries. International connectivity is typically routed through these main carriers.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Albania, enabling access to 0 cloud regions locally, as of September 2025. Secure, low-latency connections to providers like AWS, Google Cloud, and Azure are established via private network extensions to major interconnection points such as Milan, Athens, or Sofia.

Internet Exchange Points (IXPs): A public internet exchange point is not a prominent feature of the local ecosystem. Most traffic peering is handled through private arrangements with local carriers or via international upstream providers.

Bare Metal: Bare metal server solutions are available in the Albanian market. Providers like IONOS offer dedicated server options suitable for businesses requiring full control over their hardware infrastructure.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated between €0.12 and €0.16 per kWh, as of September 2025. This competitive pricing, driven by a grid that is approximately 98% renewable, helps lower operational expenditures for high-density deployments.

Power Grid Reliability: The national grid is generally reliable in the capital, Tirana, where data center infrastructure is concentrated. Its heavy reliance on hydropower ensures a clean energy supply but can introduce seasonal variability that modern data centers mitigate with onsite power generation and UPS systems.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Albania are primarily located in and around Tirana. This proximity provides low-latency connectivity to the country's economic, financial, and governmental center, which is critical for local enterprises and public sector services.

Regional Market Reach: Albania serves as a digital gateway to its immediate neighbors, including Kosovo, Montenegro, and North Macedonia. Its strategic position on the Adriatic coast also offers a potential bridge between the Balkans and Western Europe.

Tax Advantage For Data Centers: Albania currently provides no specific tax incentives for data center development or operation. The country applies a standard corporate tax framework, offering a predictable financial environment for foreign investment.

Natural Disaster Risk

Albania has a low overall natural disaster risk profile, with an INFORM Risk score of 2.9 out of 10, as of September 2025. While the composite risk is low, operators must engineer facilities to withstand specific, higher-rated regional hazards.

Key risks include:

• Earthquake: The most significant single hazard, reflecting the country's position in a seismically active zone.
• Coastal Flood: A material risk for infrastructure located near the Adriatic coastline.
• Tsunami: A related coastal risk that requires consideration for any facilities located at sea level.
• River Flood: Poses a risk to inland locations situated near major river basins.