Data Centers in Iran

Iran – Local Compute for High Volume Markets

Executive Summary

This market is for organizations requiring localized infrastructure to serve a population of over 85 million within a specific regulatory environment. Strategic placement here ensures service continuity and low-latency delivery to one of the largest digital economies in the Middle East. Leveraging these facilities is a requirement for anyone prioritizing domestic data sovereignty and localized content delivery.

Iran: At A Glance

Network & Connectivity Ecosystem

The infrastructure landscape focuses on domestic traffic sovereignty and localized content delivery.

Carrier Density & Carrier Neutrality: Carrier count: over 15 as of September 2025. This includes state-backed entities and private providers. While carrier neutrality is emerging, many facilities remain closely tied to specific backbone providers.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. Connectivity to AWS or Microsoft Azure is managed through private extensions to regional hubs in Dubai or Istanbul.

Internet Exchange Points (IXPs): The Tehran Internet Exchange serves as the primary hub to ensure local data remains within the country and minimizes external bandwidth costs.

Bare Metal: Localized bare metal services are available through domestic providers. For broader regional requirements, providers such as Leaseweb offer infrastructure in nearby territories to serve the Middle East as of September 2025.

Power Analysis

Energy availability is a primary driver for infrastructure placement in this geography.

Average Cost Of Power: $0.01–$0.03/kWh, as of September 2025. The generation mix relies heavily on fossil fuels, accounting for approximately 95% of the total output. This pricing structure makes the region one of the most affordable locations globally for high-density compute power.

Power Grid Reliability: The grid is engineered to support heavy industrial consumption in the Tehran and Qom corridors. Redundant configurations are common in facilities to manage seasonal load variations as of September 2025.

Market Access, Business & Tax Climate

Operating in this territory requires a focus on the internal consumer base and specialized industrial sectors.

Proximity To Key Business Districts: Data centers are concentrated in Tehran and Qom, providing immediate proximity to financial and technological headquarters. This ensures minimal latency for the nation's primary economic engine.

Regional Market Reach: A facility in Tehran serves a large, young, and tech-literate population. It acts as a central node for the Iranian plateau, providing a foundation for domestic application hosting.

Tax Advantage For Data Centers: The primary financial benefit is the extremely low cost of operation fueled by energy prices. This lowers the total cost of ownership for hardware-intensive deployments more effectively than traditional tax credits.

Natural Disaster Risk

The region faces a High (6.0/10) risk profile as of September 2025, primarily driven by geological factors.

• Earthquake (9.3): This is the most critical risk, requiring stringent seismic dampening and structural reinforcements.
• River Flood (7.3): A localized concern in specific basins; facilities are generally elevated or located in areas with managed drainage.
• Coastal Flood (7.4): This is an indirect regional risk affecting southern port infrastructure and supply chains.
• Drought (6.5): A persistent factor that influences cooling choices, favoring water-efficient or closed-loop systems.
• Epidemic (6.2): Managed through standard operational health protocols within facility management frameworks.

Other hazards such as tropical cyclones are considered minor or not listed for the primary metropolitan locations as of September 2025.