Data Centers in Armenia
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Armenia – Strategic Digital Hub in the Caucasus
Armenia is an emerging data center market positioned to serve the growing technology sector in the Caucasus region. For businesses seeking a foothold in this developing digital economy, Armenia offers a combination of a skilled tech workforce and favorable government incentives, making it a strategic choice for regional service delivery and disaster recovery.
Armenia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects a developing market with improving regional and international fiber routes. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Access is via private network extensions to major hubs like Frankfurt or Istanbul. |
| Power Cost | ~֏50.00-֏65.00/kWh | A balanced mix of nuclear, gas, and renewable sources supports grid stability. |
| Disaster Risk | Low (3.1/10) | The primary natural hazard consideration is seismic activity, managed with modern construction. |
| Tax Incentives | Yes | Includes exemptions from import tariffs and VAT on specific data center equipment. |
| Sales Tax | 20% VAT | Standard value-added tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Armenia’s connectivity landscape is characterized by a growing number of providers and improving international links. The market features 6 data centers, as of September 2025, primarily located in the capital, Yerevan.
Carrier Density & Carrier Neutrality The market is served by a mix of local and regional carriers. While carrier density is not as high as in major European hubs, carrier-neutral facilities are available, providing essential options for network redundancy.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Armenia, as of September 2025. Businesses connect to hyperscale cloud providers by establishing private network connections to major European hubs like Frankfurt, Amsterdam, or Istanbul. This ensures secure, low-latency access to cloud services.
Internet Exchange Points (IXPs) The local internet exchange, ARMIX, is central to managing domestic traffic efficiently in Armenia. Peering at ARMIX reduces latency for in-country data exchange and improves overall network performance.
Bare Metal Bare metal server options are available, typically through regional providers that serve the Caucasus and Eastern Europe. Providers like OVHcloud and Leaseweb can offer dedicated server solutions deployed into the region.
Power Analysis
Armenia’s power infrastructure benefits from a diverse and stable generation portfolio, which is a significant advantage for data center operations requiring high uptime.
Average Cost Of Power Industrial power costs are estimated to be between ֏50.00–֏65.00/kWh, as of September 2025. The country's energy mix is well-balanced, with approximately 40% from nuclear, 30% from natural gas, and 30% from renewables, primarily hydro. This diversity helps stabilize costs and ensure a reliable supply.
Power Grid Reliability The national power grid is generally reliable, particularly in and around Yerevan. The reliance on nuclear and hydroelectric power provides a consistent baseload, crucial for mission-critical facilities that cannot tolerate service interruptions.
Market Access, Business & Tax Climate
Armenia presents a compelling business case, combining strategic location with a supportive government stance towards the technology sector.
Proximity To Key Business Districts Data centers are concentrated in Yerevan, the nation's economic and administrative capital. This places them in close proximity to the country's burgeoning IT sector, financial institutions, and government agencies, minimizing latency for critical applications.
Regional Market Reach Armenia is strategically positioned to serve as a digital bridge between Europe, the Middle East, and the broader CIS region. Its location offers a unique opportunity for companies to reach emerging markets in the Caucasus and beyond.
Tax Advantage For Data Centers The government offers specific tax incentives to encourage technology investments. Data center operators can benefit from exemptions on import duties and VAT for critical equipment, which significantly reduces the initial capital expenditure for new projects.
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. Facility engineering and site selection practices are designed to mitigate the primary geological risks.
Key environmental risks include:
- Earthquake Risk: This is the most significant natural hazard, with a score of 7.3. Modern data centers are built to current seismic codes to withstand potential ground motion.
- Drought Risk: Rated at 5.4, drought can impact hydroelectric power generation but is managed through the country's diverse energy mix.
- River Flood Risk: With a score of 5.3, this risk is localized to specific areas and is a key factor in data center site selection.
