Data Centers in Georgia

Georgia – Caucasus Connectivity Hub

Executive Summary

Georgia is an emerging data center market for organizations targeting the Caucasus and Central Asia. Its strategic location offers a unique opportunity to deploy infrastructure that reduces latency and improves performance for underserved regional markets. This positions Georgia as a frontier for digital expansion between Europe and Asia.

Georgia: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As an emerging market, Georgia has a focused carrier ecosystem, as of September 2025. The market is served by primary national providers and a growing number of regional carriers establishing a presence, with several facilities offering carrier-neutral interconnection.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Georgia, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to major European hubs such as Frankfurt, or closer regional hubs like Istanbul.

Internet Exchange Points (IXPs): The Georgian Internet Exchange (GIX) is the primary IXP in the country. It plays a crucial role in localizing traffic, reducing latency for domestic users, and improving the resilience of the national internet infrastructure.

Bare Metal: Bare metal server options are available in Georgia, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer solutions in the broader European region that can serve Georgian workloads.

Power Analysis

Average Cost Of Power: Industrial electricity costs are estimated to be between 0.20–0.25 GEL/kWh, as of September 2025. This competitive pricing structure supports predictable operational costs for compute-intensive deployments.

Power Grid Reliability: Georgia's power grid relies heavily on hydropower, providing a significant renewable energy source. The grid in the capital, Tbilisi, where data centers are concentrated, is stable and suitable for commercial operations, with colocation facilities providing necessary N+1 or 2N redundancy.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Georgia are primarily located in and around Tbilisi. This provides low-latency connectivity to the country's financial, commercial, and governmental hub, serving the most active economic centers directly.

Regional Market Reach: Georgia's strategic position makes it a digital gateway to the wider Caucasus region, including Armenia and Azerbaijan, as well as parts of Central Asia. Deploying infrastructure here dramatically improves application performance for millions of users in these growing markets.

Tax Advantage For Data Centers: Georgia offers a highly attractive business environment, notably through its Free Industrial Zones (FIZs). Companies operating within these zones can benefit from significant tax relief, including exemptions on corporate profit tax and VAT, which lowers the total cost of ownership for data center equipment and operations.

Natural Disaster Risk

Georgia has a moderate natural disaster risk profile, with an INFORM Risk score of 3.4 out of 10, as of September 2025. The country's primary environmental challenges are geologic and hydrologic.

Key risks include:

• Earthquake: The Caucasus region is seismically active, making earthquakes the most significant natural hazard.
• River Flood: Seasonal rainfall and mountainous terrain create risks of riverine flooding in certain areas.
• Coastal Flood: The country's Black Sea coast is exposed to potential coastal flooding events.
• Drought: Periods of low rainfall can lead to drought conditions, impacting agriculture and water resources.