Data Centers in Cyprus
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Cyprus – Strategic Gateway to Three Continents
Cyprus offers a unique strategic location for businesses needing to connect Europe, the Middle East, and Africa. Its developing infrastructure provides a resilient platform for disaster recovery and serving regional markets where low latency is a competitive advantage.
Cyprus: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity via subsea cables, though lacking in carrier density. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Athens and Tel Aviv; private connectivity is available. |
| Power Cost | €0.18 – €0.24/kWh | Industrial power costs are in line with other European island nations. |
| Disaster Risk | Low (2.9/10) – as of September 2025 | Primary risks are seismic activity and coastal events; overall risk is low. |
| Tax Incentives | No | No specific tax incentives for data centers have been identified. |
| Sales Tax | 19% VAT – as of September 2025 | Standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the carrier ecosystem in Cyprus is emerging. The market features several national and regional providers, with connectivity primarily delivered through a robust network of subsea cables connecting the island to Europe and the Middle East.
Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers as of September 2025. Businesses connect to cloud services via network hubs in Athens, Tel Aviv, or other European metros through private network extensions or IP transit.
Internet Exchange Points (IXPs): The primary exchange is the Cyprus Internet Exchange (CyIX), which facilitates local traffic peering, improving performance and reducing reliance on international transit for domestic data exchange.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer deployment options in Cyprus.
Power Analysis
Average Cost Of Power: Industrial electricity prices in Cyprus typically range from €0.18 to €0.24/kWh as of September 2025. This cost structure is a key consideration for high-density deployments. The grid is predominantly powered by fossil fuels (93.37%).
Power Grid Reliability: The national power grid provides stable and reliable energy to the main commercial centers where data centers are located. While heavily dependent on imported fuels, the infrastructure is well-maintained to support critical business operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Cyprus are situated to serve the primary business hubs of Nicosia and Limassol. These cities host the country's financial services, shipping, and technology sectors, making low-latency access critical.
Regional Market Reach: Cyprus is strategically positioned at the crossroads of three continents. This location makes it an ideal network and data hub for serving markets across the Eastern Mediterranean, North Africa, and the Middle East.
Tax Advantage For Data Centers: Cyprus does not offer specific tax incentives aimed directly at data center development or operation. The country maintains a competitive corporate tax rate, but colocation and IT service investments are subject to standard tax regulations.
Natural Disaster Risk
Cyprus has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.9 out of 10 as of September 2025. The island's geography exposes it to specific, yet manageable, environmental hazards.
Key risks include:
- Earthquake: The most significant natural hazard, reflecting the island's position in a seismically active region.
- Tsunami: A secondary risk related to undersea seismic events in the Mediterranean.
- Coastal Flood: A moderate risk for low-lying coastal areas.
- Drought: The region is susceptible to periods of prolonged low rainfall.
