Data Centers in Armenia
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Armenia – Strategic Digital Outpost
Executive Summary
Armenia is an emerging data center market for businesses requiring a stable and low-risk operational base in the Caucasus region. With a small but growing ecosystem of six facilities, it provides a strategic foothold for delivering services to developing economies across Eurasia. The country's primary advantage is its combination of a low natural disaster risk profile and targeted financial incentives that reduce the cost of infrastructure deployment.
Armenia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, though direct intercontinental capacity is still developing. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major clouds requires transit to European hubs like Frankfurt via private network extensions. |
| Power Cost | ~ AMD 35-45/kWh ($0.09-0.11/kWh) | Based on a diverse grid with significant nuclear and renewable generation. |
| Disaster Risk | Low (3.1/10) – as of September 2025 | Primary risks are seismic activity and drought, but overall exposure remains low. |
| Tax Incentives | Yes | DC-specific exemptions from import tariffs and VAT on production equipment and select services. |
| Sales Tax | 20% VAT – as of September 2025 | The standard Value Added Tax rate applicable to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the Armenian market is served by a growing number of local and regional carriers. While density is not as high as in major European hubs, the six colocation facilities in the country provide access to essential connectivity for local and regional operations.
Direct Cloud On-Ramps: There are no direct, in-country cloud on-ramps from major hyperscalers as of September 2025. Businesses connect to providers like AWS, Google Cloud, and Azure by utilizing network extensions and private line services to major European interconnection hubs such as Frankfurt.
Internet Exchange Points (IXPs): The primary local exchange is the Armenian Internet Exchange (ARMIX). Peering at ARMIX helps localize traffic, reduce latency for domestic users, and lower transit costs for service providers within the country.
Bare Metal: Bare metal server options are available, typically through providers that serve the broader European and Eurasian regions. Companies like OVHcloud offer solutions that can be effectively deployed to serve customers from infrastructure located in nearby European data centers.
Power Analysis
Average Cost Of Power: Industrial power costs in Armenia are competitive for the region, estimated between AMD 35.00 – 45.00/kWh (approximately $0.09 – $0.11/kWh) as of September 2025. This pricing helps control operational expenditures for compute-heavy workloads. The country's power mix is notably diverse, sourced from nuclear (~40%), natural gas (~30%), and renewables (~30%).
Power Grid Reliability: The national power grid is generally stable, particularly in the capital, Yerevan, where the data center facilities are concentrated. The infrastructure scores in risk assessments indicate a reliable foundation for mission-critical operations, supported by a balanced and resilient generation portfolio.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Armenia's data centers are located in and around Yerevan, the nation's economic and political capital. This provides low-latency connectivity to the country's primary financial institutions, technology companies, and government agencies.
Regional Market Reach: Strategically positioned between Europe and Asia, Armenia offers a unique point of presence for serving the Caucasus, as well as enabling connectivity towards Iran and other parts of Central Asia. It acts as a digital bridge for companies targeting these emerging markets.
Tax Advantage For Data Centers: Armenia provides specific tax incentives that directly benefit data center operators. The government offers exemptions from import tariffs and VAT on production equipment and certain services, which substantially lowers the initial capital investment required for facility build-outs and hardware refreshes.
Natural Disaster Risk
Armenia has a low overall natural disaster risk profile, with an INFORM Risk score of 3.1 out of 10 as of September 2025. This low score indicates a stable environment for critical infrastructure, though specific site selection should account for regional hazards.
Key natural hazards to consider include:
- Earthquake Risk: The most significant natural hazard, with a risk score of 7.3.
- Drought Risk: A notable concern with a score of 5.4.
- River Flood Risk: Poses a moderate risk, scored at 5.3.
- Epidemic Risk: Scored at 4.1, reflecting public health vulnerabilities.
