Data Centers in Yerevan
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Yerevan – A Resilient Hub for the Caucasus Region
Yerevan is emerging as a strategic digital infrastructure location for enterprises targeting the Caucasus region and surrounding markets. The city offers a unique combination of a resilient power grid, low natural disaster risk, and favorable tax incentives for technology investment. This makes it a compelling choice for businesses that need a secure and stable operational base in a developing region.
Yerevan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable international connectivity, though lacking hyperscale cloud presence. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network partners to major hubs like Frankfurt or Istanbul. |
| Power Cost | AMD 40.00-55.00/kWh | Diverse energy mix of nuclear, gas, and renewables helps ensure grid stability. |
| Disaster Risk | Low (3.1/10) – as of September 2025 | Low overall risk score, with moderate earthquake and drought considerations. |
| Tax Incentives | Yes | Exemptions from import tariffs and VAT on specific data center equipment are available. |
| Sales Tax | 20% VAT – as of September 2025 | Standard Value Added Tax rate applied to goods and services. |
Network & Connectivity Ecosystem
Yerevan's connectivity landscape is characterized by a growing number of service providers and developing interconnection options.
Carrier Density & Carrier Neutrality: The market supports a good selection of local and regional carriers, with at least 3 colocation facilities available as of September 2025. Carrier-neutral options provide flexibility for building resilient network architectures.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major hyperscalers as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through network partners, with primary access points located in European hubs such as Frankfurt.
Internet Exchange Points (IXPs): Armenia has a local internet exchange, ARMIX, which facilitates domestic traffic exchange, improving local latency and performance. However, most international peering occurs through providers connecting to larger exchanges in Europe and Russia.
Bare Metal: Bare metal server options are available in Yerevan, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity can serve the market, offering an alternative to virtualized infrastructure.
Power Analysis
Armenia’s power infrastructure is a key strength for its data center market, built on a diverse and reliable energy portfolio.
Average Cost Of Power: Industrial electricity rates are estimated to be between AMD 40.00-55.00/kWh as of September 2025. This competitive pricing is supported by a balanced energy mix of approximately 40% nuclear, 30% natural gas, and 30% renewables.
Power Grid Reliability: The national grid is considered reliable, benefiting from multiple generation sources that reduce dependency on any single fuel type. Data centers in Yerevan are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Yerevan offers strategic market access combined with a supportive business environment for technology companies.
Proximity To Key Business Districts: Data centers in Yerevan are situated near the city's central business districts, providing low-latency connectivity for financial services, technology companies, and government institutions headquartered in the capital.
Regional Market Reach: From Yerevan, businesses can effectively serve customers across Armenia, Georgia, and parts of the broader Caucasus region. Its location makes it a viable digital crossroads between Europe and Asia.
Tax Advantage For Data Centers: Armenia offers specific tax incentives to encourage technology investment. The government provides exemptions from import tariffs and VAT on the importation of production equipment and certain data-center services, directly lowering the capital expenditure required to establish operations.
Natural Disaster Risk
Yerevan has a low overall risk profile for natural disasters, though specific hazards warrant consideration in infrastructure planning.
Based on the INFORM Risk Index, the region scores Low (3.1/10) for natural disaster risk as of September 2025. While the overall threat is minimal, operators should account for the following specific risks:
- Earthquake: The most significant risk factor (7.3/10).
- Drought: A moderate risk (5.4/10).
- River Flood: A moderate risk (5.3/10).
Risks from tsunamis, tropical cyclones, and coastal floods are negligible given the country's inland geography.
