Data Centers in Baku
3 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Baku – Strategic Digital Hub for the Caspian Region
Baku is emerging as a key digital gateway, serving businesses that require low-latency access to markets across the Caucasus, Central Asia, and the Middle East. For companies in energy, logistics, and finance, establishing a presence here secures a vital foothold in a rapidly developing economic crossroads. This market provides a strategic advantage for delivering services and applications closer to a diverse and growing user base.
Baku: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity with opportunities for growth. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Turkey and Eastern Europe; private connectivity is available. |
| Power Cost | AZN 0.10–0.14/kWh (est.) | Fossil fuels dominate the grid, keeping industrial power costs relatively stable. |
| Disaster Risk | Medium (4.4/10) – as of September 2025 | Primarily exposed to seismic activity and flood risks. |
| Tax Incentives | Yes | DC-specific exemptions on sales tax and import tariffs for equipment are available. |
| Sales Tax | 18% VAT – as of September 2025 | Standard rate applicable to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the market is served by over 10 national and regional carriers. While carrier neutrality is improving, the ecosystem is still developing compared to more mature European hubs.
Direct Cloud On-Ramps: Baku has 0 direct cloud on-ramps, meaning there are no native, in-market connections to major public clouds. Businesses typically connect to cloud providers via network extensions from hubs in Turkey or Frankfurt. Private Network Interconnect (PNI) and wavelength services can be procured to establish reliable, dedicated links.
Internet Exchange Points (IXPs): Public peering is limited in Baku. Most traffic exchange occurs through private peering arrangements directly between the largest service providers, which is typical for a market at this stage of development.
Bare Metal: Bare metal server options are available from providers targeting the region. Services from vendors like Hivelocity and LeasebWeb can be deployed to support compute-intensive workloads.
Power Analysis
Average Cost Of Power: Industrial electricity prices are estimated to be between AZN 0.10 and AZN 0.14 per kWh, as of September 2025. This competitive pricing is driven by the country's significant natural gas reserves, offering a predictable cost structure for high-density deployments.
Power Grid Reliability: The power grid in Baku is generally reliable, supported by a generation mix dominated by natural gas (approximately 90–95%). Major data center corridors benefit from access to redundant power feeds and modern substation infrastructure to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Baku are strategically located to serve the city's central business district, which is the heart of Azerbaijan's dominant oil and gas industry. This proximity offers financial services, logistics, and energy companies low-latency connectivity for their critical operations.
Regional Market Reach: Baku is uniquely positioned to serve as a digital hub for the Caucasus region (Georgia, Armenia) and neighboring markets in Central Asia (Kazakhstan, Turkmenistan) and the northern Middle East. Its location on the Caspian Sea makes it a vital nexus for regional data traffic.
Tax Advantage For Data Centers: Azerbaijan offers significant financial incentives for data center operators and tenants. The government provides sales tax exemption certificates and waivers for import tariffs and VAT on data center equipment and services, a program extended to 2037. This policy substantially reduces the capital expenditure required to launch or expand a facility.
Natural Disaster Risk
Baku has a Medium overall disaster risk profile, with a score of 4.4 out of 10, as of September 2025. The risk assessment indicates that while the overall threat is moderate, operators must engineer facilities to withstand specific, known hazards.
The primary natural risks for infrastructure in this region are:
- Earthquake: Score 7.8
- River Flood: Score 6.6
- Drought: Score 5.3
Risks from tsunamis, tropical cyclones, and coastal floods are negligible for this location.
