Data Centers in Tallinn

Tallinn – Your Digital Gateway to the Baltic Sea Region

Tallinn is a prime digital infrastructure hub for businesses targeting Northern Europe, the Baltics, and westward into Russia. Its stable, low-risk environment and advanced digital society provide a reliable foundation for deploying critical applications where uptime and security are essential. This combination makes Tallinn an intelligent choice for establishing a resilient IT footprint in the region.

Tallinn: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: With 4 providers and approximately 10 data centers, Tallinn offers a focused but competitive connectivity market as of September 2025. Carrier-neutral facilities are the standard, providing diverse options for network resilience.

Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps from major providers. Businesses achieve secure, high-performance cloud access via dedicated network links to nearby hubs like Helsinki or Stockholm. Private network interconnects are readily available from local carriers.

Internet Exchange Points (IXPs): The primary exchange is the Tallinn Internet Exchange (TLLIX), which facilitates efficient traffic exchange between local and regional networks. This minimizes latency for traffic within the Baltic region.

Bare Metal: Bare metal server options are available for workloads requiring dedicated physical hardware. Providers such as Hivelocity and OVHcloud offer services in or near the region, meeting demand for high-performance computing.

Power Analysis

Average Cost Of Power: Industrial electricity pricing typically falls within the €0.12 to €0.17/kWh range as of September 2025. This predictable cost structure helps in forecasting operational expenses for compute-heavy deployments.

Power Grid Reliability: The power grid supporting Tallinn's main commercial zones is well-engineered and stable. Data centers are supported by redundant power feeds from multiple substations, ensuring high levels of uptime consistent with modern enterprise requirements. The national energy mix is approximately 70% fossil fuels, primarily oil shale, with renewables making up about 25%.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Tallinn's data centers are strategically located to serve the city's thriving tech sector, including the Ülemiste City business district, known as the Silicon Valley of the Baltics. This proximity provides low-latency connectivity for local financial, e-government, and technology companies.

Regional Market Reach: Tallinn is an exceptional digital hub for the Baltic states (Estonia, Latvia, Lithuania) and provides a low-latency gateway to Finland, Sweden, and Western Russia. Its strong fiber optic infrastructure makes it an effective base for serving over 10 million people in the immediate region.

Tax Advantage For Data Centers: Estonia's tax system is known for its simplicity and transparency rather than specific incentives. The primary benefit is a corporate tax policy where reinvested profits are not taxed, encouraging long-term investment in infrastructure and operations.

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. The country's geography and climate protect it from the most severe catastrophic events common in other parts of the world.

Key risk factors are minimal and include:

• River Flood: The highest natural hazard score, though still low on a global scale.
• Coastal Flood: Poses a minor risk in specific low-lying coastal areas.
• Earthquake: Seismic activity is negligible.
• Tropical Cyclone & Tsunami: These events do not pose a risk to the region.