Data Centers in Bosnia and Herzegovina

Bosnia and Herzegovina – Strategic Western Balkans Hub

Bosnia and Herzegovina provides a reliable foundation for regional growth by combining some of the most competitive power rates in Europe with significant tax exemptions for infrastructure investment. It is a strong choice for organizations requiring a localized presence to serve the Western Balkans with speed and security.

Bosnia and Herzegovina: At A Glance

Network & Connectivity Ecosystem

As a developing digital crossroads, the local infrastructure is purpose-built for regional reach and stability.

Carrier Density & Carrier Neutrality: Carrier count: over 10, as of September 2025. The environment includes a mix of national incumbents and private regional fiber providers, offering sufficient path diversity for redundant configurations.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions, as of September 2025. Enterprises typically reach AWS, Google Cloud (GCP), or Microsoft Azure via high-capacity wavelengths or private network interconnects to central European hubs like Vienna.

Internet Exchange Points (IXPs): The BHNIX in Sarajevo serves as the primary local exchange point, ensuring domestic traffic stays within national borders to improve speed for local users.

Bare Metal: Dedicated server and bare metal options are available through providers like OVHcloud and Leaseweb, which serve the Southeast European market as of September 2025.

Power Analysis

The energy sector is a major national asset, providing a stable environment for industrial-scale operations.

Average Cost Of Power: Industrial electricity rates generally fall between €0.08 and €0.12/kWh, as of September 2025. These competitive rates provide a clear advantage for firms managing power-dense workloads that would be cost-prohibitive in Western Europe.

Power Grid Reliability: The grid is well-engineered and benefits from a consistent energy surplus. This stability is supported by a mix of significant hydroelectric capacity and coal-fired generation, allowing for multi-substation support in key industrial zones.

Market Access, Business & Tax Climate

Positioning infrastructure here provides direct access to a growing digital economy and a favorable regulatory environment.

Proximity To Key Business Districts: Data centers are centrally located near Sarajevo, the hub for national finance, government, and the emerging technology sector, ensuring low-latency services for the most active markets.

Regional Market Reach: From this location, providers can effectively serve over 15 million people across the Western Balkan states with high-speed network paths.

Tax Advantage For Data Centers: Infrastructure projects benefit from specific exemptions on VAT and import duties for specialized server and cooling hardware. This financial policy helps customers reduce initial deployment costs and maintain a modern technology stack.

Natural Disaster Risk

The overall risk profile is Moderate (3.5/10), as of September 2025. Facility operators prioritize structural engineering to manage specific environmental factors during site selection.

Earthquake (6/10): This represents the highest natural risk, necessitating structural designs that meet modern seismic standards to ensure long-term uptime.

River Flood (5.9/10): Moderate risk exists in specific low-lying river valleys, making elevation and drainage critical for data center placement.

Drought (3.1/10): Periodic dry spells can impact hydroelectric output but rarely threaten the primary power delivery for industrial users.

Epidemic (2.4/10): This is a low-level concern, in line with broader European public health trends.

Note: As an inland territory, coastal hazards like Tsunami and Coastal Flood are not material risks for local infrastructure.