Data Centers in Yerevan
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Yerevan – The South Caucasus Gateway for Digital Growth
Yerevan serves as a strategic point for regional data sovereignty and low-latency access to the Armenian market. It is a reliable base for organizations needing a secure environment with specific tax advantages to bridge European and CIS digital traffic.
Yerevan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable routing with maturing international fiber paths. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest major hubs are Sofia and Istanbul. |
| Power Cost | $0.11/kWh – as of December 2025 | Competitive rates from a diversified generation mix. |
| Disaster Risk | Low (3.1/10) – as of December 2025 | Manageable risk profile with focus on seismic resilience. |
| Tax Incentives | Yes | Exemptions for import tariffs and VAT on equipment. |
| Sales Tax | 20% VAT – as of December 2025 | Standard rate for infrastructure and digital services. |
Network & Connectivity Ecosystem
Yerevan functions as the central hub for Armenian telecommunications, providing essential transit routes between East and West. Every connection here benefits from a maturing infrastructure focused on regional resilience and local performance.
Carrier Density & Carrier Neutrality: Carrier count: over 15 as of December 2025. The market features a mix of local incumbents and regional providers, with approximately 15–20 active carriers providing diverse routing options for enterprise traffic.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of December 2025. While direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure are not physically present in Yerevan, enterprises typically use private network interconnects or dedicated waves to reach the nearest hubs in Sofia or Istanbul.
Internet Exchange Points (IXPs): The Armix Internet Exchange facilitates efficient local peering, which reduces latency for domestic traffic and optimizes path selection for regional transit.
Bare Metal: Bare metal services are available through local specialized providers, with global options such as Leaseweb or phoenixNAP providing reachable capacity for hybrid configurations as of December 2025.
Power Analysis
The energy landscape in Yerevan is characterized by a diversified generation mix that provides a high degree of baseload stability.
Average Cost Of Power: $0.11/kWh, as of December 2025. This rate reflects a balanced generation profile including approximately 40% nuclear, 30% natural gas, and 30% renewables. These competitive rates contribute to lower total cost of ownership for high-density deployments.
Power Grid Reliability: The grid in major data center corridors is well-engineered and benefits from multi-substation support. Redundant transmission lines from the nuclear and hydroelectric sectors provide a sturdy foundation for critical infrastructure.
Market Access, Business & Tax Climate
Armenia has positioned itself as a technology-forward economy, offering a friendly environment for digital infrastructure investment.
Proximity To Key Business Districts: Data centers are centrally located near the Kentron district and emerging tech corridors. This proximity facilitates rapid on-site support and low-latency connectivity for the country’s financial and software development sectors.
Regional Market Reach: Yerevan is a strategic gateway for the South Caucasus. It provides an effective platform for serving the Armenian domestic market while acting as a neutral staging ground for broader regional data initiatives.
Tax Advantage For Data Centers: The government provides specific financial relief for infrastructure projects to encourage digital growth. The exemption from import tariffs and VAT on production equipment significantly lowers the barrier for entry when scaling hardware.
Natural Disaster Risk
Yerevan maintains a Low overall risk profile with a score of 3.1/10 as of December 2025. While the overall risk is low, specific geological and environmental factors are managed through resilient building codes and site selection.
- Earthquake: 7.3 (Moderate) – This is the primary natural hazard, requiring seismic-rated facility designs.
- Drought: 5.4 (Moderate) – Regional water management is a factor for cooling system design.
- River Flood: 5.3 (Moderate) – Risks are localized and generally mitigated by elevated site locations.
- Epidemic: 4.1 (Low) – Standard public health risks with minimal impact on automated infrastructure.
Other natural hazards, such as tropical cyclones or coastal flooding, are not applicable to this inland location as of December 2025.