Data Centers in Tallinn

Tallinn – Resilient Digital Hub for the Baltics

Tallinn is a strategic digital gateway connecting the Baltic states with Nordic Europe. Its highly stable, low-risk environment makes it an excellent choice for disaster recovery and for businesses targeting latency-sensitive applications across Northern and Eastern Europe. The city's advanced digital infrastructure ensures reliable uptime and performance for critical operations.

Tallinn: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Estonia has a focused and efficient connectivity market with 4 primary service providers operating within its 10 colocation facilities, as of September 2025. Carrier-neutral data centers in Tallinn offer access to this ecosystem, ensuring competitive network pricing and resiliency.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Estonia, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through low-latency links to nearby hubs in Helsinki, Finland or Stockholm, Sweden. Private network extensions via wave or PNI are common solutions.

Internet Exchange Points (IXPs): The primary exchange is TLLIX (Tallinn Internet Exchange), which facilitates efficient local traffic peering and improves network performance within Estonia and the Baltic region.

Bare Metal: Bare metal server options are available in Tallinn, providing dedicated compute resources for performance-intensive workloads. Providers like Hivelocity and OVHcloud offer solutions in the region.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Tallinn typically range from €0.14 to €0.18 per kWh, as of September 2025. This cost structure is competitive for Northern Europe, allowing businesses to manage operational expenses effectively. The national energy mix relies heavily on oil shale (~70%), with a growing share from renewables (~25%).

Power Grid Reliability: Estonia's power grid is reliable and well-maintained, especially in the Tallinn metropolitan area where data centers are concentrated. Facilities are supported by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Tallinn are located near the city's main commercial and technology hubs, including Ülemiste City, known as the Silicon Valley of the Baltics. This proximity provides low-latency connectivity for financial services, tech startups, and government digital services.

Regional Market Reach: Tallinn is strategically positioned to serve the Baltic states of Latvia and Lithuania, as well as providing a nearshore gateway to Finland, Sweden, and Poland. Its location is ideal for companies requiring a digital presence in Northern and Eastern Europe.

Tax Advantage For Data Centers: Estonia does not provide specific tax incentives for data centers. However, the country is known for its straightforward and competitive corporate tax system, which can be beneficial for international businesses establishing operations there.

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 stable geography and climate protect it from significant catastrophic events, making it a prime location for disaster recovery and business continuity.

Key risk factors are minimal and include:

• River Flood: The highest individual risk factor, though still low on a global scale.
• Coastal Flood: A minor consideration for facilities located near the coast.

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