Data Centers in Cyprus
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Cyprus – Gateway to the Eastern Mediterranean
Executive Summary
Cyprus serves as a vital digital bridge between Europe, the Middle East, and North Africa. It is the premier choice for organizations requiring a stable European Union jurisdiction to manage high-speed traffic for Levant-based users. Deploying here ensures low-latency regional access without sacrificing regulatory oversight.
Cyprus: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable diversity for regional transit. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Nearest hubs are Athens or Tel Aviv. |
| Power Cost | €0.32/kWh – as of January 2026 | High fossil fuel reliance impacts local pricing. |
| Disaster Risk | Low (2.9/10) – as of January 2026 | Seismic activity is the primary hazard. |
| Tax Incentives | No | Standard corporate tax environment applies. |
| Sales Tax | 19% VAT – as of January 2026 | Standard rate for digital infrastructure. |
Network & Connectivity Ecosystem
Cyprus operates as a specialized edge market where subsea cable infrastructure dictates the strategy. While it is not a Tier 1 hub, its role in international data transit is vital for any Eastern Mediterranean strategy.
Carrier Density & Carrier Neutrality: Carrier count: over 15 carriers, as of January 2026. The market features a mix of local incumbents and international transit providers leveraging the island as a multi-continent landing point.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions, as of January 2026. Major cloud providers do not maintain local physical on-ramps. Regional operators provide access to the nearest hubs in Athens or Tel Aviv via private wave or PNI to reach AWS, Google Cloud (GCP), or Microsoft Azure.
Internet Exchange Points (IXPs): The Cyprus Internet Exchange (CyIX) acts as the central peering point. It keeps domestic traffic local to ensure minimal latency for on-island users.
Bare Metal: Infrastructure as a service and bare metal options are available through regional specialists and global providers like Hivelocity, as of January 2026.
Power Analysis
Energy infrastructure in Cyprus is currently transitioning, though it remains sensitive to global fuel prices due to limited local generation variety.
Average Cost Of Power: Industrial electricity is approximately €0.32/kWh, as of January 2026. With a grid mix composed of over 93% fossil fuels, pricing is susceptible to global fuel market volatility. Efficient cooling is a priority for local deployments.
Power Grid Reliability: The energy infrastructure is well-engineered with redundant configurations designed to support the island’s critical financial and maritime sectors. Data centers typically benefit from multi-substation support to ensure consistent uptime.
Market Access, Business & Tax Climate
Cyprus attracts specific industries that require a stable EU base for operations targeting the Eastern Mediterranean and North African markets.
Proximity To Key Business Districts: Facilities are strategically positioned to serve the Nicosia financial district and the expanding fintech and shipping hub in Limassol. This proximity allows for rapid hardware maintenance and high-speed local loops.
Regional Market Reach: Hosting in Cyprus provides a springboard to a population of over 100 million across the MENA region. This location delivers significantly better latency to the Levant than Western European hubs.
Tax Advantage For Data Centers: A stable corporate tax environment allows for predictable long-term infrastructure investment. This stability helps customers manage digital operations within a reliable EU framework.
Natural Disaster Risk
The overall natural disaster risk for Cyprus is Low (2.9/10), as of January 2026. While the geography is stable, facilities require specific engineering to account for regional hazards.
- Earthquake (6.9/10): This is the primary natural concern, requiring sites built to rigorous seismic standards.
- Tsunami (4/10): A moderate regional factor, though primary facilities are inland or at elevations that mitigate direct impact.
- Coastal Flood (2.9/10): A minor risk generally confined to immediate shoreline infrastructure.
- Drought (2.7/10): Reflects the arid climate but has minimal impact on modern, closed-loop cooling systems.
Other hazards such as river flooding or tropical cyclones are negligible for this geography, as of January 2026.
