Data Centers in Tallinn

Tallinn – Digital Gateway to the Nordic Region

Tallinn is a top-tier choice for enterprises requiring ultra-low latency access to the Baltics and Northern Europe. Its highly digitalized economy and unique tax structure provide a high-performance environment for securing mission-critical workloads while maximizing capital efficiency.

Tallinn: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 15. Tallinn maintains a competitive market with approximately 15–25 regional and international carriers as of September 2025. This density ensures pricing leverage and redundant pathing for global enterprises.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. There are currently no local on-ramps for major global cloud providers in the city as of September 2025. Local providers utilize high-speed transport to Helsinki or Stockholm to reach these platforms with minimal latency.

Internet Exchange Points (IXPs): TIX (Tallinn Internet Exchange) is the primary peering point as of September 2025. It facilitates efficient local traffic exchange and reduces reliance on international transit.

Bare Metal: High-performance compute options are available through providers such as Leaseweb or Hivelocity as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity prices average between €0.16 and €0.24/kWh as of September 2025. The energy mix is approximately 70% fossil fuels (primarily oil shale) and 25% renewables. These rates are competitive for Northern Europe, allowing for predictable operational costs.

Power Grid Reliability: The Estonian grid is well-engineered and reliable. Data center corridors in the capital benefit from redundant delivery and multi-substation support to ensure consistent uptime for hardware as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located near the city center and Mustamäe as of September 2025. This proximity is vital for the financial services and technology sectors, which require rapid access to their primary compute resources.

Regional Market Reach: Tallinn acts as a primary transit gateway for data moving between Finland, the Baltic states, and Central Europe. It effectively serves a regional population of several million with low latency as of September 2025.

Tax Advantage For Data Centers: Estonia provides a unique corporate tax system where reinvested profits are not taxed. This policy allows infrastructure-heavy businesses to scale rapidly by retaining more capital for equipment and expansion as of September 2025.

Natural Disaster Risk

Tallinn is a low-risk environment with an overall risk score of 1.9/10 as of September 2025. The geographical stability of the region makes it a reliable site for long-term infrastructure investment.

• River Flood (5.4): The most notable hazard, though risk is restricted to specific low-lying areas as of September 2025.
• Coastal Flood (2.1): A minor regional risk that is generally mitigated by standard site selection and elevation as of September 2025.
• Epidemic (1.4): Rated as a low factor for facility operations and staffing as of September 2025.
• Earthquake (0.1): Negligible risk, providing high geological stability for sensitive equipment as of September 2025.

Other natural hazards are minor or not listed as significant threats for this market as of September 2025.