Data Centers in Armenia

Armenia – Strategic Interconnection for the Caucasus Gateway

Armenia is a vital digital bridge for enterprises targeting the Caucasus and Western Asia. With six active facilities and a focus on high-stakes software engineering, the market provides the operational security needed for mission-critical digital assets.

Armenia: At A Glance

Network & Connectivity Ecosystem

Armenia has transitioned from a landlocked network to a strategic interconnection point for the Eurasian corridor. As of September 2025, the ecosystem focuses on high–capacity fiber routes connecting Europe to the Middle East.

Carrier Density & Carrier Neutrality: Carrier count: over 5. Facilities in the capital provide neutral access to national backbones, including major players like Team Telecom and Ucom, as of September 2025.

Direct Cloud On–Ramps: Over 0, enabling access to 0 cloud regions. As of September 2025, there are no local on–ramps for AWS or Google Cloud (GCP) within the country. Connectivity is managed via high–capacity private waves to regional hubs in Turkey or Georgia.

Internet Exchange Points (IXPs): The ARMIX (Armenian Internet Exchange) serves as the primary hub in Yerevan, keeping local traffic within the country to ensure low latency and reduced transit costs.

Bare Metal: Dedicated server and bare metal options are available through regional firms and specialized providers like OVHcloud or Leaseweb, as of September 2025.

Power Analysis

Power stability is a cornerstone of the Armenian infrastructure strategy. The grid relies on a diverse generation portfolio to maintain uptime for high–density compute.

Average Cost Of Power: Industrial electricity is approximately $0.09/kWh, as of September 2025. This rate is a strong choice for reducing operational overhead compared to European markets.

Power Grid Reliability: The grid is well–engineered, with nearly 40% of power generated by the Metsamor nuclear plant. This provides a steady baseload, complemented by redundant gas and hydro facilities to ensure multi–source reliability for data center corridors.

Market Access, Business & Tax Climate

Armenia has positioned itself as the Silicon Mountains, attracting investment through a pro–tech regulatory environment and neutral geopolitical standing.

Proximity To Key Business Districts: Data centers are located primarily in and around Yerevan. This puts infrastructure near the nation’s largest financial institutions and a community of over 1,000 technology companies.

Regional Market Reach: From Armenia, operators can serve the Caucasus and the broader Eurasian Economic Union. The location is purpose–built for companies requiring a neutral site to manage data across diverse jurisdictions.

Tax Advantage For Data Centers: Operators benefit from significant financial relief through exemptions on import duties for production equipment and specific IT hardware. These incentives help reduce the initial capital required to build and scale local server footprints.

Natural Disaster Risk

Armenia is a mountainous region with a risk profile that requires professional engineering oversight. The overall risk is categorized as Low (3.1/10) as of September 2025.

Risk Rubric: Low (3.1/10)

Earthquake (7.3): High seismic risk is the primary concern, requiring data centers to adhere to strict structural integrity and vibration–dampening standards.

Drought (5.4): High risk levels are present, which may affect secondary hydroelectric generation during peak summer months.

River Flood (5.3): Moderate risk exists in specific river basins; most primary data center sites are located on higher ground to mitigate this.

Epidemic (4.1): Moderate risk factor based on regional health infrastructure data as of September 2025.

Other natural hazards, such as Tsunami and Coastal Flood, are not applicable to this landlocked market.