Data Centers in Estonia

Estonia – Digital Hub of the Baltics

Estonia is a strategic digital gateway connecting the Nordic countries, CEE, and the broader European market. For businesses prioritizing stable governance, a digitally-advanced society, and low-risk operations, Estonia provides a reliable foothold for reaching tens of millions of users with minimal latency.

Estonia: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Estonia features a competitive environment with services from over 4 national and international providers as of September 2025. The market is centered around carrier-neutral facilities primarily in Tallinn, offering diverse connectivity options.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Estonia as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through nearby European hubs, most commonly Helsinki, Finland or Stockholm, Sweden. Dedicated private network connections can be established from local data centers.

Internet Exchange Points (IXPs): The primary internet exchange is TIX (Tallinn Internet Exchange), which facilitates the majority of domestic peering. This IXP is crucial for keeping local traffic within Estonia, reducing latency for end-users.

Bare Metal: Bare metal server options are readily available from providers operating within Estonia. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring direct hardware access.

Power Analysis

Average Cost Of Power: Industrial electricity costs are estimated between €0.15 and €0.19/kWh as of September 2025. This pricing is competitive within the Nordic-Baltic region, though the grid's reliance on oil shale (approximately 70%) can influence price stability.

Power Grid Reliability: The national power grid is reliable, especially in the capital region of Tallinn where most data centers are located. The infrastructure is well-maintained, with redundant feeds available to major colocation facilities to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Tallinn, Estonia's capital and economic center. This provides low-latency connectivity to the nation's burgeoning tech sector, financial services companies, and government e-services platforms.

Regional Market Reach: From Estonia, businesses can effectively serve the entire Baltic region (Latvia, Lithuania) as well as southern Finland and parts of Sweden. Its strategic location makes it an excellent digital entry point for the Nordic and CEE markets.

Tax Advantage For Data Centers: Estonia's primary tax advantage is its simplicity and transparency. The corporate income tax system is unique, as tax is only levied on distributed profits, not on reinvested earnings, which benefits long-term capital investments.

Natural Disaster Risk

Estonia has a very low natural disaster risk profile, with an INFORM Risk score of 1.9 out of 10 as of September 2025. This operational stability is a key advantage for mission-critical infrastructure.

The most notable environmental risks are seasonal and manageable:

• River Flood: The highest individual risk factor, though incidents are typically localized and do not impact major data center infrastructure.
• Coastal Flood: A moderate consideration for facilities located directly on the coast, but easily mitigated through site selection.
• Epidemic: A low-probability, high-impact risk common to all developed nations.

Risks from earthquakes, tsunamis, tropical cyclones, and droughts are negligible.