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Data Centers in Tirana

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Tirana – Strategic Hub for Adriatic Connectivity

Executive Summary

Tirana is an emerging data center market providing a strategic foothold for businesses targeting Albania and the wider Western Balkans. While the ecosystem is developing, it offers a low-latency gateway to underserved populations. This market is ideal for content delivery networks, service providers, and enterprises looking to establish a presence in Southeastern Europe without the costs of larger, primary hubs.

Tirana: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBA developing market with steadily improving international fiber routes.
Direct Cloud On-Ramps0 – as of September 2025Access via hubs like Milan or Athens through private network extensions.
Power Cost€0.12 – €0.16/kWh (est.)Dominated by renewable hydropower, offering stable and predictable energy pricing.
Disaster RiskLow (2.9/10) – as of September 2025Primary risks include seismic activity and regional flooding.
Tax IncentivesNoNo specific data center incentives are currently offered by the government.
Sales Tax20% VAT – as of September 2025The standard value-added tax rate is applied to colocation services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market is concentrated, with 2 providers operating 5 data centers, as of September 2025. Carrier-neutral options are available, providing access to the primary local and regional telecommunication operators.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Albania, enabling access to 0 cloud regions locally, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network fabrics extending from major European hubs such as Milan.

Internet Exchange Points (IXPs): The Albanian Neutral Internet Exchange (ANIX) is the primary IXP. It facilitates efficient traffic exchange between local internet service providers, reducing latency for domestic users.

Bare Metal: Bare metal server options are available, typically offered by regional European providers. These solutions provide dedicated compute resources for performance-sensitive workloads.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated between €0.12 and €0.16 per kWh, as of September 2025. Albania's grid is approximately 98% renewable, sourced almost entirely from hydropower, which helps maintain predictable long-term operational expenses.

Power Grid Reliability: The power grid in Tirana is reliable for commercial and industrial use. Data centers are supported by standard N+1 or 2N UPS systems and backup generators to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Tirana are located to serve the capital's central business district, government institutions, and major financial companies. This proximity ensures low-latency connectivity for the country's primary economic hub.

Regional Market Reach: Tirana is well-positioned to serve as a digital hub for the Western Balkans. It offers effective network reach into neighboring markets, including Kosovo, Montenegro, and North Macedonia.

Tax Advantage For Data Centers: Albania does not offer specific tax incentives for data center investment or operations. Businesses should plan for the standard corporate income tax and the 20% VAT rate on services.

Natural Disaster Risk

Overall, Tirana has a low natural disaster risk profile, with an INFORM Risk score of 2.9 out of 10, as of September 2025. While the overall risk is low, operators must engineer facilities to mitigate specific, higher-rated threats.

The most significant natural hazards include:

  • Earthquake: The most prominent risk, with a score of 8.3/10.
  • Coastal Flood: A moderate risk for the country at 7.4/10, primarily affecting Albania's Adriatic coastline rather than the inland capital.
  • Tsunami: Scored at 6.8/10, this is a regional threat for coastal areas.
  • River Flood: A moderate localized risk for areas in and around Tirana, scored at 4.6/10.
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