Data Centers in Abovyan
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Abovyan – Resilient Infrastructure for the Caucasus
Abovyan serves as an emerging digital hub within Armenia, offering a strategic location for businesses targeting the Caucasus region and beyond. It provides a foundation for organizations that require resilient infrastructure away from primary European and Asian data center corridors, capitalizing on a unique power mix and a developing connectivity ecosystem. This market is ideal for disaster recovery sites and for companies seeking to establish a digital presence in a growing economic area.
Abovyan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable but developing international connectivity options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via network extensions from hubs like Frankfurt or Istanbul. |
| Power Cost | AMD 45.00–55.00/kWh | Nuclear and renewable sources provide a stable, diverse power grid. |
| Disaster Risk | Low (3.1/10) – as of September 2025 | Primary risks are seismic activity and drought; overall risk profile is low. |
| Tax Incentives | Yes | Exemptions 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: Carrier density in Abovyan is developing, with services available from national and regional providers. The market features at least one carrier-neutral facility, allowing for interconnection between multiple networks.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Armenia as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to major European hubs such as Frankfurt, Amsterdam, or Istanbul.
Internet Exchange Points (IXPs): Public peering is handled primarily through the Armenian Internet Exchange (ARMIX) located in Yerevan. This IXP is central to local traffic exchange, reducing latency for domestic users and improving overall network performance within the country.
Bare Metal: Bare metal server options are available, offering dedicated compute resources for performance-intensive applications. Providers like phoenixNAP and Hivelocity can serve the region through network partners, providing customized hardware solutions.
Power Analysis
Average Cost Of Power: Industrial power costs in Abovyan typically range from AMD 45.00–55.00/kWh as of September 2025. The country's balanced energy portfolio, with significant contributions from nuclear, gas, and renewables, helps stabilize pricing and provides a degree of cost predictability for high-consumption operations.
Power Grid Reliability: Armenia's power grid is generally reliable, supported by a diverse generation mix. The data center in Abovyan is engineered with redundancy to mitigate risks from grid instability, ensuring high uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Abovyan are strategically located near Yerevan, Armenia's capital and primary economic center. This proximity provides low-latency connections to the country's financial, technological, and governmental sectors.
Regional Market Reach: From Abovyan, businesses can effectively serve users across Armenia, Georgia, and other parts of the Caucasus region. Its position offers a valuable gateway for companies looking to expand their digital footprint into this underserved market.
Tax Advantage For Data Centers: Armenia offers specific tax incentives for technology-focused operations, including data centers. These advantages include exemptions from import tariffs and VAT on qualifying equipment, which significantly lowers the initial capital expenditure for new deployments.
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. While the general risk is minimal, operators must engineer facilities to account for specific regional hazards.
Key risks include:
- Earthquake: Score of 7.3, indicating a significant seismic risk that requires adherence to strict building codes.
- Drought: Score of 5.4, a moderate risk that can impact water resources and power generation.
- River Flood: Score of 5.3, posing a localized risk in certain areas.
