Data Centers in T'bilisi
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T'bilisi – Your Digital Gateway to the Caucasus
T'bilisi is an emerging data center market, offering a strategic foothold for businesses targeting Georgia and the surrounding Caucasus region. Its combination of a favorable business climate and competitive operating costs makes it a compelling choice for companies looking to deploy infrastructure closer to users in this developing digital economy. This market provides a vital link between Europe and Asia, improving latency and performance for regional end-users.
T'bilisi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A developing market with a focus on improving regional and international fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is available via network extension from hubs like Istanbul or Frankfurt. |
| Power Cost | GEL 0.20–0.25/kWh | A competitive rate for the region, offering a significant advantage for operations. |
| Disaster Risk | Moderate (3.4/10) | Primary risks are seismic activity and flooding, requiring site-specific due diligence. |
| Tax Incentives | Yes | Georgia offers a pro-business environment with various incentives for technology investments. |
| Sales Tax | 18% VAT – as of September 2025 | Standard Value Added Tax rate applied to services. |
Network & Connectivity Ecosystem
T'bilisi's connectivity landscape is concentrated yet growing, providing essential access for digital services in the region.
Carrier Density & Carrier Neutrality: The market features 3 data centers with access to the primary national and regional telecommunication providers, as of September 2025. While carrier choice is more limited than in larger European hubs, the existing infrastructure provides reliable connectivity for most business needs.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major hyperscalers as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Azure by establishing private network connections to major European hubs such as Istanbul or Frankfurt.
Internet Exchange Points (IXPs): The market is served by the Georgian Internet Exchange (GIX). This IXP facilitates local traffic exchange, which improves performance and reduces latency for users within Georgia by keeping data local.
Bare Metal: Bare metal server options are available in T'bilisi, providing a solid alternative to traditional colocation for companies that need dedicated physical hardware. Providers like Leaseweb offer solutions in the region.
Power Analysis
Average Cost Of Power: Industrial power costs in T'bilisi are estimated between GEL 0.20–0.25/kWh, as of September 2025. This competitive pricing creates a compelling financial advantage for high-density deployments and compute-intensive workloads compared to more mature European markets.
Power Grid Reliability: The power grid serving the capital is generally stable and undergoing modernization. Data centers in T'bilisi are built to standard resiliency levels, with redundant power feeds, on-site generators, and UPS systems to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in T'bilisi are strategically located to serve the city's primary commercial and government districts. This proximity provides low-latency connectivity for the nation's financial, technology, and public sectors.
Regional Market Reach: T'bilisi is uniquely positioned as a digital hub for the Caucasus. Deploying infrastructure here allows businesses to effectively serve millions of users across Georgia, Armenia, and Azerbaijan with significantly improved performance.
Tax Advantage For Data Centers: Georgia is known for its favorable and simplified tax system. Specific incentives aimed at encouraging technology investment can further reduce the total cost of ownership for data center customers.
Natural Disaster Risk
Georgia has a moderate overall disaster risk profile, with an INFORM Risk score of 3.4 out of 10, as of September 2025. While the overall risk is manageable, data center site selection must account for specific regional hazards.
The most significant natural risks for the area include:
- Earthquake: 7.2
- River Flood: 6.1
- Drought: 5.6
- Epidemic: 4.3
