Data Centers in Tallinn

Tallinn – Digital Gateway to the Baltic and Scandinavia

The Baltic Hub for Resilient Infrastructure

Tallinn is a critical landing point for enterprises requiring low-latency reach into the Baltic States and Northern Europe. Its unique tax structure and geological stability provide a high-security environment that protects hardware investments while accelerating regional service delivery. This market is a strategic choice for operators who prioritize cost-efficiency and physical safety without sacrificing high-speed interconnection.

Tallinn: At A Glance

Network & Connectivity Ecosystem

Tallinn serves as a primary transit corridor between Finland and Central Europe, providing a sophisticated peering environment for the region.

Carrier Density & Carrier Neutrality: Carrier count: over 15. The market maintains a dense ecosystem of 15–25 regional and international carriers as of January 2026. This competition provides enterprises with multiple redundant paths and pricing leverage for global traffic.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. There are currently no local on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure in the city as of January 2026. Enterprises typically use high-capacity transport to reach the nearest cloud hubs in Helsinki or Stockholm with negligible latency.

Internet Exchange Points (IXPs): TIX (Tallinn Internet Exchange) is the primary peering point as of January 2026. It facilitates efficient local traffic exchange and reduces the cost of international IP transit.

Bare Metal: High-performance compute options are available through providers such as Leaseweb as of January 2026.

Power Analysis

Energy availability in Tallinn is characterized by high reliability and predictable pricing models.

Average Cost Of Power: Industrial electricity prices range between €0.16 and €0.24/kWh as of January 2026. The energy mix consists of approximately 70% fossil fuels and 25% renewables. These rates offer a significant operational advantage for power-hungry compute clusters compared to major Tier 1 markets.

Power Grid Reliability: The Estonian grid is well-engineered and highly resilient as of January 2026. Data center clusters benefit from multi-substation support and redundant delivery, ensuring consistent hardware availability even during peak demand.

Market Access, Business & Tax Climate

The local business environment is built for rapid scaling and ease of operation.

Proximity To Key Business Districts: Data centers are located near the city center and Mustamäe as of January 2026. This ensures rapid physical access for engineering teams and minimal latency for the financial services and technology firms based in the capital.

Regional Market Reach: Tallinn acts as the primary gateway for data moving across the Baltic States. It effectively serves a regional population of several million with low-latency connectivity, acting as a bridge to the Nordic markets as of January 2026.

Tax Advantage For Data Centers: Estonia provides a unique corporate tax system where reinvested profits are not taxed as of January 2026. This allows infrastructure businesses to scale rapidly by retaining more capital for equipment upgrades and facility expansion.

Natural Disaster Risk

Tallinn is one of the safest locations for data center infrastructure in Europe, with an overall risk score of 1.9/10 as of January 2026.

• River Flood (5.4): The most notable hazard, though risks are restricted to specific low-lying zones as of January 2026.
• Coastal Flood (2.1): A minor factor that is easily mitigated by proper site selection and elevation as of January 2026.
• Epidemic (1.4): Rated as a low factor for facility operations and staffing as of January 2026.
• Earthquake (0.1): Negligible risk, providing a stable foundation for sensitive storage and compute hardware as of January 2026.

Other natural hazards are minor or not listed as material threats for this market as of January 2026.