Data Centers in Bagratashen
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Bagratashen – Strategic Gateway for Caucasus Connectivity
Bagratashen serves as a focused entry point for digital infrastructure aimed at cross-border trade and logistics between Armenia and Georgia. Its unique geographic position makes it a strategic choice for organizations requiring resilient, localized compute and connectivity at the edge of the Caucasus region. This market is ideal for businesses that prioritize low-latency access for trade, customs, and regional operations.
Bagratashen: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable terrestrial connections, though lacking diverse international subsea cable landings. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connectivity is available to major hubs like Frankfurt or Istanbul. |
| Power Cost | AMD 40.00-50.00/kWh (est.) | Diverse grid mix helps stabilize costs for industrial users. |
| Disaster Risk | Low (3.1/10) – as of September 2025 | Primary risks are seismic activity and drought; overall exposure is low. |
| Tax Incentives | Yes | DC-specific exemptions on import tariffs and VAT for production equipment. |
| Sales Tax | 20% VAT – as of September 2025 | Standard Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier density in Bagratashen is focused, with several national and regional providers offering services. Connectivity is primarily routed through Yerevan, Armenia's capital. The market supports carrier-neutral principles, allowing for choice in transit and backhaul providers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Bagratashen as of September 2025. Businesses connect to hyperscale cloud providers by establishing private network connections (PNI/wave) to major European hubs such as Frankfurt or Istanbul.
Internet Exchange Points (IXPs): The primary national exchange, ARMIX, is located in Yerevan. Most peering for networks in Bagratashen occurs through private interconnects or is routed through this central IXP to optimize traffic flow within Armenia.
Bare Metal: Bare metal server options are available, primarily through providers located in Yerevan who can serve the Bagratashen region. This allows for dedicated compute resources without the overhead of managing hardware.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated between AMD 40.00 and 50.00 per kWh as of September 2025. Armenia's balanced power generation from nuclear, natural gas, and renewables contributes to a relatively stable and predictable pricing environment, which is crucial for managing data center operational expenses.
Power Grid Reliability: The national power grid is reliable. A diversified energy mix, with significant contributions from nuclear and natural gas plants, ensures consistent power availability for critical infrastructure operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Bagratashen is itself a key business district, serving as a primary land border crossing with Georgia. Data centers here are positioned to support logistics, customs, and trade finance operations that depend on immediate data processing and cross-border communications.
Regional Market Reach: From Bagratashen, businesses can effectively serve markets in northern Armenia and southern Georgia. Its strategic location facilitates low-latency connectivity for companies engaged in import/export and regional distribution across the Caucasus.
Tax Advantage For Data Centers: Armenia offers targeted financial incentives for data center operators. The primary benefit is a valuable exemption from import tariffs and VAT on specific production equipment and services, directly reducing the capital expenditure required to build or expand facilities.
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 low, operators should engineer facilities to mitigate specific, higher-rated regional hazards.
The most significant natural risks for the area include:
- Earthquake: 7.3/10
- Drought: 5.4/10
- River Flood: 5.3/10
