Data Centers in Tehran

Tehran – Direct Access to a Massive Localized Market

Executive Summary

Tehran serves as the primary infrastructure hub for organizations targeting a captive domestic audience of over 85 million users. This market is essential for businesses requiring local data sovereignty and low-latency delivery within a specific regional ecosystem. Deploying here ensures direct access to a high-density user base where localized presence is a regulatory and performance requirement as of September 2025.

Tehran: At A Glance

Network & Connectivity Ecosystem

The local infrastructure supports high-density domestic traffic through localized peering gateways. As of September 2025, the market emphasizes regional efficiency over global hyperscale integration.

Carrier Density & Carrier Neutrality: Carrier count: over 15. This includes a mix of state-owned and private telecommunications providers offering varied fiber paths within the city as of September 2025.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. Organizations typically utilize private extension options or point-to-point circuits to reach major hubs in Dubai for cloud connectivity as of September 2025.

Internet Exchange Points (IXPs): The Tehran Internet Exchange (Tehran-IX) serves as the primary hub, facilitating local peering to keep domestic traffic efficient and reducing reliance on international transit as of September 2025.

Bare Metal: General availability is supported by local infrastructure providers. International requirements are often met via providers like Leaseweb serving the region from nearby international hubs as of September 2025.

Power Analysis

Energy in this market is characterized by high availability and significantly low costs, though it remains heavily reliant on specific fuel sources.

Average Cost Of Power: Industrial electricity ranges from $0.02 – $0.05/kWh, as of September 2025. This pricing provides a significant operational cost advantage for high-density compute requirements.

Power Grid Reliability: The grid is primarily supported by fossil fuels, which account for roughly 95% of production as of September 2025. Redundancy is managed through site-specific power systems to maintain uptime during periods of high seasonal demand.

Market Access, Business & Tax Climate

Tehran is the economic engine of the region, housing the majority of financial, technological, and administrative headquarters.

Proximity To Key Business Districts: Data centers are positioned near central districts to serve the banking and e-commerce sectors, where low latency is vital for transaction processing as of September 2025.

Regional Market Reach: A single deployment in Tehran effectively serves a domestic population of over 85 million people, providing a massive user base for digital services as of September 2025.

Tax Advantage For Data Centers: Businesses operate under standard corporate tax structures without specialized breaks for digital infrastructure. This ensures a predictable, if standard, fiscal environment for long-term planning as of September 2025.

Natural Disaster Risk

High (6.0/10). The region faces a significant risk profile driven largely by seismic activity and environmental factors as of September 2025. Infrastructure is purpose-built to withstand these specific local threats.

• Earthquake (9.3): High seismic risk requires facilities to adhere to strict structural standards.
• River Flood (7.3): Seasonal flooding can impact low-lying areas, making site selection critical.
• Drought (6.5): Persistent dry conditions influence cooling strategies for high-density facilities.
• Epidemic (6.2): Public health factors are monitored for their impact on workforce availability.