Data Centers in Abovyan

Abovyan – Strategic Digital Hub for the Caucasus

Abovyan, Armenia serves as a developing colocation market offering a strategic foothold for businesses targeting the Caucasus region and beyond. Its primary advantage lies in a favorable tax climate and access to a stable, nuclear-heavy power grid, enabling cost-effective infrastructure deployment. This market is best suited for enterprises requiring a regional presence for disaster recovery or to serve end-users in Armenia, Georgia, and Iran.

Abovyan: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As an emerging market, Abovyan provides access to a focused group of national and regional carriers, with at least 1 provider reported as of September 2025. Carrier-neutral facilities offer interconnection options, though the ecosystem is still developing compared to larger European hubs.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Abovyan as of September 2025, meaning there are 0 dedicated cloud regions locally. Secure, high-performance connections to cloud providers like AWS, Google Cloud (GCP), and Azure are established through private network extensions to major European hubs like Frankfurt, Warsaw, or Istanbul.

Internet Exchange Points (IXPs): Peering is primarily handled through private interconnection within data centers or via the Armenian Internet Exchange (ARMIX) located in the capital, Yerevan. This setup facilitates efficient local traffic exchange and reduces latency for domestic users.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers such as Hivelocity offer solutions suitable for deploying infrastructure in the region.

Power Analysis

Average Cost Of Power: Industrial electricity rates are estimated between AMD 35.00-45.00/kWh as of September 2025. This competitive pricing is a direct result of Armenia's balanced energy portfolio, which includes significant contributions from nuclear (~40%), renewable (~30%), and natural gas (~30%) sources. This predictable power cost structure is a key advantage for managing operational expenses.

Power Grid Reliability: The national power grid is reliable, particularly in industrial zones where data centers are sited. The diverse energy mix, with a strong nuclear baseload, ensures high grid stability and reduces dependence on any single fuel source, contributing to excellent uptime for critical facilities.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Abovyan are strategically located near Yerevan, Armenia's capital and largest economic center. This proximity provides low-latency connectivity to the country's primary financial, technology, and government sectors.

Regional Market Reach: Abovyan is well-positioned to serve as a digital gateway to the broader Caucasus region. It offers a viable hub for reaching end-users and business partners in neighboring Georgia and Iran, as well as providing an alternative network path into Russia.

Tax Advantage For Data Centers: Armenia offers a significant tax incentive for data center operators and tenants. The government provides exemptions from both import tariffs and VAT on qualifying production equipment and certain services, which substantially lowers the initial capital investment required to build or expand digital infrastructure.

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 general threat level is low, operators should engineer facilities to mitigate the most relevant local hazards.

The primary natural risks for this market include:

• Earthquake: Score 7.3/10
• Drought: Score 5.4/10
• River Flood: Score 5.3/10
• Epidemic: Score 4.1/10