Data Centers in Yerevan
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Yerevan – Strategic Hub for the Caucasus Region
Executive Summary
Yerevan is establishing itself as a key digital hub for the Caucasus region, making it an excellent choice for companies targeting Armenia and its neighbors. The city's developing colocation market provides the necessary infrastructure to reduce latency and improve service delivery for a growing digital economy. This strategic position allows businesses to efficiently establish a presence for serving markets across Eurasia.
Yerevan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects a concentrated local market with developing international fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extensions to major European hubs like Frankfurt. |
| Power Cost | 35.00-55.00 AMD/kWh (est.) | Power mix includes significant nuclear and renewable sources, promoting stability. |
| Disaster Risk | Low (3.1/10) – as of September 2025 | Primary risks are seismic activity and drought; overall risk is low. |
| Tax Incentives | Yes | DC-specific exemptions from import tariffs and VAT on production equipment. |
| Sales Tax | 20% VAT – as of September 2025 | Standard Value Added Tax rate applied to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the market features a focused but growing number of local and regional carriers. At least three data centers operate in Yerevan, offering colocation and interconnection services, with an increasing emphasis on carrier-neutral access.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Armenia as of September 2025. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure by utilizing private network extensions to major European interconnection hubs such as Frankfurt or Istanbul.
Internet Exchange Points (IXPs): The primary local exchange is the Armenia Internet Exchange (ARMIX). It plays a crucial role in keeping domestic traffic local, which reduces latency and transit costs for users and service providers within the country.
Bare Metal: Bare metal server options are available, primarily through international providers that can deploy dedicated hardware in the region. Providers like Hivelocity and Leaseweb offer solutions for customers requiring single-tenant physical servers.
Power Analysis
Average Cost Of Power: Industrial power costs are estimated to be between 35.00-55.00 AMD/kWh as of September 2025. Armenia's balanced energy portfolio, with approximately 40% nuclear, 30% renewables, and 30% natural gas, contributes to grid stability and predictable pricing, helping to manage operational expenses effectively.
Power Grid Reliability: The power grid in Yerevan is reliable for commercial and industrial use. Data centers in the area are engineered with standard redundancies, including UPS systems and backup generators, to ensure high levels of uptime and service continuity.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Yerevan are strategically located to serve the capital's central business district, home to a growing technology sector, financial institutions, and government agencies. This proximity ensures low-latency performance for critical local applications.
Regional Market Reach: Yerevan serves as an effective digital gateway to the broader Caucasus region. Colocating in Armenia provides a strategic advantage for delivering services to neighboring Georgia and parts of Iran, bridging markets in Europe and Asia.
Tax Advantage For Data Centers: Armenia provides specific tax incentives designed to attract technology investment. Data center operators can benefit from exemptions on VAT and import tariffs for essential production equipment, which substantially lowers the initial capital expenditure for building or expanding facilities.
Natural Disaster Risk
Armenia has a Low overall disaster risk profile, with an INFORM Risk score of 3.1 out of 10 as of September 2025. While the composite risk is low, operators should engineer facilities to account for specific regional hazards. The primary environmental risks are seismic activity and drought.
Key natural hazards include:
- Earthquake: 7.3/10
- Drought: 5.4/10
- River Flood: 5.3/10
- Epidemic: 4.1/10
