Data Centers in Armenia
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Explore Markets in Armenia
Armenia – An Emerging Caucasus Tech Hub
Armenia is a developing colocation market positioned as a strategic digital bridge between Europe and Asia. For companies targeting the Caucasus region and looking for a cost-effective base with a strong technical talent pool, Armenia offers a compelling alternative to more established hubs. Its growing infrastructure and favorable tax policies provide a solid foundation for regional service delivery and disaster recovery operations.
Armenia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity with developing international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via network partners; nearest hubs in Frankfurt or Istanbul. |
| Power Cost | AMD 45.00-55.00/kWh (est.) | Diverse energy mix including nuclear, hydro, and natural gas. |
| Disaster Risk | Low (3.1/10) – as of September 2025 | Primary risks are earthquakes and drought; overall exposure is low. |
| Tax Incentives | Yes | Exemption from import tariffs and VAT on specific data center equipment. |
| Sales Tax | 20% VAT – as of September 2025 | Standard value-added tax rate applied to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Armenia has a focused carrier environment with at least 6 distinct data center providers. The market is developing, with major national telcos offering colocation alongside a growing number of independent, carrier-neutral facilities in Yerevan.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Armenia as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated private network links (PNI/wave) to major European hubs such as Frankfurt, or through regional hubs like Istanbul.
Internet Exchange Points (IXPs): The primary exchange is the Armenia Internet Exchange (AR-IX), which facilitates local traffic peering between major ISPs and content providers. This helps keep domestic latency low and improves network efficiency within the country.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers such as Hivelocity offer deployment options in or near the region.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated between AMD 45.00-55.00/kWh as of September 2025. Armenia's balanced energy portfolio, with significant contributions from nuclear (~40%), renewable (~30%), and natural gas (~30%) sources, helps stabilize pricing and provides a reliable supply. This competitive power pricing reduces operational expenditures for high-density deployments.
Power Grid Reliability: The national power grid is generally reliable, especially in the capital, Yerevan, where data centers are concentrated. Facilities are supported by a grid that has seen consistent modernization, and standard data center designs incorporate redundant power feeds, UPS systems, and on-site generators.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Armenia are primarily located in and around Yerevan, the nation's capital and economic center. This places them in close proximity to the country's burgeoning tech sector, financial institutions, and government offices, enabling low-latency connectivity for critical applications.
Regional Market Reach: Armenia serves as a strategic point of presence for delivering services to the South Caucasus region, including Georgia and parts of southern Russia. Its location also offers a potential bridge for connectivity between Europe, Iran, and the broader Middle East.
Tax Advantage For Data Centers: The government provides specific incentives to encourage technology investment. Data center operators and their clients can benefit from exemptions on import tariffs and Value Added Tax (VAT) for qualifying production equipment and services, directly lowering capital investment costs.
Natural Disaster Risk
Armenia has a Low overall risk profile for natural disasters, with an INFORM Risk score of 3.1 out of 10 as of September 2025. While the overall threat is minimal, operators should engineer facilities to mitigate the most relevant local hazards.
The most significant natural risks include:
- Earthquake: Score 7.3
- Drought: Score 5.4
- River Flood: Score 5.3
- Epidemic: Score 4.1
