Data Centers in Bulgaria

Bulgaria – Strategic Gateway to Southeast Europe

Executive Summary

Bulgaria is a compelling data center market for businesses targeting Southeast Europe and the Balkans. The country offers an excellent combination of low operational costs, particularly for power, and strong regional fiber connectivity. This makes it an ideal location for disaster recovery sites, content delivery networks, and enterprises seeking a cost-effective foothold to serve emerging European markets.

Bulgaria: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Bulgarian market is served by over 10 network providers, offering a healthy mix of local, regional, and international carriers in key data centers, primarily in Sofia, as of September 2025.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Bulgaria, as of September 2025. Businesses require private network extensions or wave services to connect to cloud regions in major hubs like Frankfurt, Vienna, or Milan for the lowest latency.

Internet Exchange Points (IXPs): The Bulgarian Internet Exchange (BIX.BG) is the primary IXP, centralizing a significant portion of domestic traffic. Peering at BIX.BG improves performance and reduces costs for delivering content within Bulgaria and the immediate Balkan region.

Bare Metal: Bare metal server options are readily available from multiple providers. The market includes global providers like Hivelocity and regional specialists offering dedicated server hosting solutions.

Power Analysis

Average Cost Of Power: Industrial power costs are very competitive for Europe at approximately €0.09/kWh, as of August 2025. This low cost, driven by a power mix that is 43% nuclear, provides a significant operational advantage for high-density computing deployments.

Power Grid Reliability: The national power grid is reliable, particularly in the capital, Sofia, where most data centers are located. The energy infrastructure benefits from a diverse generation portfolio, ensuring stable supply for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Sofia, the nation's economic center. This provides low-latency connectivity to the city's growing technology, financial services, and business process outsourcing (BPO) industries.

Regional Market Reach: Bulgaria’s strategic location makes it an effective hub for serving the Balkan Peninsula. It offers low-latency network paths to Romania, Serbia, Greece, North Macedonia, and Turkey, reaching a combined market of over 50 million people.

Tax Advantage For Data Centers: While no specific data center incentives exist, Bulgaria offers one of the most attractive general tax climates in the European Union. The country's low flat corporate income tax rate and overall cost-effective business environment reduce the total cost of ownership for digital infrastructure.

Natural Disaster Risk

Bulgaria has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.6 out of 10, as of September 2025. The primary environmental hazards to consider are seismic activity and flooding.

Key risk factors include:

• Earthquake: This is the most significant natural hazard, with a moderate risk score.
• River Flood: Poses a moderate risk, particularly in specific river basins.
• Coastal Flood: A minor risk factor, primarily affecting the Black Sea coast.
• Drought: A minor to moderate seasonal consideration for the region.