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Data Centers in Yerevan

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Yerevan – Strategic Hub for the Caucasus Region

Yerevan serves as a developing digital hub for Armenia and the broader Caucasus region. The market is best suited for organizations requiring a local presence to serve end-users in the area, capitalizing on a unique power mix and a growing technology sector. Deploying infrastructure here improves application performance and data sovereignty for regional operations.

Yerevan: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity with developing international links.
Direct Cloud On-Ramps0 – as of September 2025Direct connections are unavailable; access via hubs like Frankfurt or Istanbul is common.
Power CostAMD 48.00-55.00/kWhA stable and diverse energy mix helps manage operational costs.
Disaster RiskLow (3.1/10)Primary risks are seismic activity and drought; overall exposure is low.
Tax IncentivesYesExemption from import tariffs and VAT on specific data center equipment.
Sales Tax20% VATStandard national value-added tax rate, as of September 2025.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As a growing market, Yerevan offers access to several national and regional carriers. At least three data centers provide colocation services, as of September 2025, offering a base for building resilient network architectures.

Direct Cloud On-Ramps: There are no direct cloud on-ramps from hyperscale providers within Yerevan, as of September 2025. Businesses connect to cloud regions by extending their networks to major European hubs like Frankfurt, Amsterdam, or Istanbul via private network interconnects.

Internet Exchange Points (IXPs): The primary exchange is the Armenia Internet Exchange (ARMIX), which facilitates local traffic peering, reducing latency for domestic users. Most international traffic is routed through providers connecting to Georgia, Iran, and Turkey.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers such as phoenixNAP and Hivelocity can serve the region from nearby European locations.

Power Analysis

Average Cost Of Power: Industrial electricity prices are estimated between AMD 48.00–55.00/kWh, as of September 2025. The country's balanced power generation, with significant contributions from nuclear, natural gas, and renewables, provides cost stability. This predictable pricing is advantageous for financial forecasting.

Power Grid Reliability: The power grid in Yerevan is generally reliable for commercial operations. Data centers in the area are supported by a grid that draws from a diverse mix of generation sources, enhancing overall stability and uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Yerevan are situated to serve the city's central business districts and growing technology parks. This proximity allows financial services, software development, and government entities to benefit from low-latency connectivity.

Regional Market Reach: From Yerevan, businesses can effectively deliver services to Armenia, Georgia, and parts of Iran and southern Russia. Its strategic location makes it a viable point of presence for reaching a combined market of over 20 million people.

Tax Advantage For Data Centers: The government provides targeted incentives to encourage technology investment. Operators can benefit from exemptions on import duties and value-added tax for critical production equipment and some data center services, directly reducing capital expenditures.

Natural Disaster Risk

Yerevan has a Low risk profile for natural disasters, with an INFORM Risk score of 3.1 out of 10, as of September 2025. The primary environmental hazards requiring consideration are earthquakes and drought.

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

While seismic risk is the most significant factor, modern data centers are engineered to mitigate this threat. Other risks such as tsunamis, tropical cyclones, and coastal floods are not applicable to this inland location.

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