Data Centers in Georgia
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Georgia – Strategic Gateway to the Caucasus Region
Georgia is an emerging data center market well-suited for organizations requiring a strategic foothold in the Caucasus region. Its developing infrastructure provides a cost-effective platform for serving regional customers, reducing latency for applications targeting markets across Eastern Europe and Western Asia. This location is a solid choice for companies prioritizing regional presence and operational efficiency.
Georgia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity with opportunities for growth. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Access requires connecting to major hubs like Frankfurt or Istanbul. |
| Power Cost | GEL 0.20–0.28/kWh | Based on regional averages for industrial use, as of September 2025. |
| Disaster Risk | Low (3.4/10) | Primarily exposed to seismic and flood risks, as of September 2025. |
| Tax Incentives | Yes | State-level sales and use tax exemptions available for data centers. |
| Sales Tax | 18% VAT | Standard Value Added Tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Georgia has a focused but growing carrier ecosystem. The market is served by over a dozen regional and local providers, with an increasing presence of international carriers establishing points of presence, primarily in Tbilisi. Carrier-neutral facilities are available, offering diverse connectivity options.
Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers as of September 2025. Access to hyperscale cloud services like AWS, Google Cloud, or Microsoft Azure relies on private network extensions or transit to major European hubs such as Frankfurt, Istanbul, or Warsaw.
Internet Exchange Points (IXPs): Public peering is limited within Georgia. Most internet traffic is exchanged through private peering arrangements within carrier-neutral data centers or routed through major international hubs.
Bare Metal: Bare metal server options are available from local and regional providers. For broader global platforms, companies like OVHcloud and IONOS can provide dedicated server solutions.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated to be between GEL 0.20 and GEL 0.28/kWh as of September 2025. This competitive pricing structure can significantly lower operational expenditures for compute-heavy workloads compared to more mature European markets.
Power Grid Reliability: The national power grid is reliable in the capital, Tbilisi, and other primary commercial areas where data centers are located. The grid benefits from a diverse energy mix, including significant hydroelectric and natural gas resources, supporting stable operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Georgia are primarily located in and around Tbilisi, the country's economic and business center. This proximity provides low-latency connectivity for the financial services, technology, and government sectors concentrated in the capital.
Regional Market Reach: Georgia’s strategic location at the intersection of Europe and Asia makes it a logical hub for serving the Caucasus countries (Armenia, Azerbaijan) and providing a gateway to markets in Turkey, Russia, and Central Asia.
Tax Advantage For Data Centers: Georgia offers significant tax incentives, including a state-level sales and use tax exemption on qualifying high-tech data center equipment. This program reduces the initial capital investment required to build or expand a data center, making it a financially attractive location for new projects.
Natural Disaster Risk
Georgia has a low overall risk profile for natural disasters, with an INFORM Risk score of 3.4 out of 10 as of September 2025. While the composite score is low, businesses should engineer infrastructure to account for specific regional hazards.
The most significant natural risks include:
- Earthquake: Score of 7.2
- River Flood: Score of 6.1
- Coastal Flood: Score of 6.0
- Drought: Score of 5.6
