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Data Centers in Bagratashen

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Bagratashen – Essential Gateway for Regional Data Transit

Strategic Cross-Border Connectivity

Bagratashen is the primary handover point for data moving between Armenia and Georgia, making it a critical asset for regional telecommunications resilience. This market serves organizations requiring secure, low-latency transit to reach European hubs from the South Caucasus, ensuring high-speed delivery for international logistics and trade.

Bagratashen: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable transit for international traffic.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are Frankfurt or Istanbul.
Power Cost$0.11/kWh – as of September 2025Based on Armenian industrial electricity rates.
Disaster RiskLow (3.1/10) – as of September 2025Seismic activity is the primary factor.
Tax IncentivesYesVAT and import tariff exemptions.
Sales Tax20% VAT – as of September 2025Standard national rate for Armenia.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 5 as of September 2025. As a primary border market, the ecosystem centers on international fiber transit. Approximately 5–10 regional backbone providers manage the physical layer to ensure reliable handover between Armenian and Georgian national networks.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of September 2025. No native on-ramps exist at this site. High-capacity private waves or PNI connections link this market to major Western European hubs like Frankfurt to access services from AWS or Microsoft Azure.

Internet Exchange Points (IXPs): Primary peering occurs through the ARMIX exchange in Yerevan or via regional exchanges in Tbilisi. Bagratashen serves as the physical transport bridge for these peering points, ensuring low-latency handoffs for regional traffic as of September 2025.

Bare Metal: Dedicated server options are available through regional providers such as Leaseweb as of September 2025. Availability is specific to transit-heavy use cases and regional redundancy requirements.

Power Analysis

Average Cost Of Power: Industrial electricity rates are approximately $0.11/kWh as of September 2025. The grid uses a balanced mix of nuclear (40%), fossil fuels (30%), and renewables (30%). This diversity helps maintain cost stability for high-density deployments and regional operations.

Power Grid Reliability: The infrastructure is purpose-built for border operations and international transit. Facilities typically utilize redundant feeds and support from multiple substations to ensure consistent uptime for critical networking hardware in this strategic corridor as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Located directly on the Georgian border, this site is the primary gateway for data traveling north to Tbilisi. It is vital for companies managing international trade, logistics, and regional telecommunications between the two nations as of September 2025.

Regional Market Reach: Bagratashen provides a reliable bridge between the South Caucasus and European markets. It serves as a necessary failover and transit point for the Armenian digital economy, connecting local enterprises to the broader global network.

Tax Advantage For Data Centers: Operators benefit from an exemption on import tariffs and VAT for production equipment. This incentive significantly lowers the cost of deploying high-end hardware and improves overall project margins for infrastructure investors as of September 2025.

Natural Disaster Risk

The overall natural disaster risk for Bagratashen is Low, with a score of 3.1 out of 10 as of September 2025. The following natural hazards represent the primary considerations for facility engineering and site selection:

  • Earthquake: 7.3 (Significant seismic activity requires resilient structural standards).
  • Drought: 5.4 (Regional climate cycles impact long-term resource planning).
  • River Flood: 5.3 (Proximity to the Debed river requires specific site-level flood protection).
  • Epidemic: 4.1 (Standard public health risks remain at a low baseline).

Coastal flood and tsunami risks are zero due to the inland geography of the region. Other natural hazards are considered minor and do not impact the core risk profile for data center operations as of September 2025.

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