Data Centers in T'bilisi
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T'bilisi – Strategic Hub for Caucasus & Central Asia
Executive Summary
T'bilisi is emerging as a strategic colocation market for businesses targeting the Caucasus and Central Asia. Its key advantage is providing a low-latency digital gateway to developing economies that are otherwise difficult to reach from primary European hubs. Deploying infrastructure here reduces latency and improves application performance for users across Georgia, Armenia, and Azerbaijan.
T'bilisi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international links, serving as a key regional hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Access is via network extension from hubs like Istanbul or Frankfurt. |
| Power Cost | ~€0.07 - €0.11/kWh | Based on regional industrial averages, as of September 2025. |
| Disaster Risk | Moderate (3.4/10) | Primarily seismic and flood risks, requiring site-specific due diligence. |
| Tax Incentives | Varies | No specific data center programs; incentives may be available via Free Industrial Zones. |
| Sales Tax | 18% VAT | Standard rate applied to goods and services, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market is developing, with one primary national provider and a handful of independent data centers offering colocation, as of September 2025. Carrier neutrality is available but not as widespread as in larger European markets.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Georgia, as of September 2025. Businesses connect to major cloud providers by extending their private networks (PNI or wave) to regional hubs like Istanbul or major European centers such as Frankfurt.
Internet Exchange Points (IXPs): The Georgian Internet Exchange (G-IX) is the primary IXP in Tbilisi. It facilitates efficient, low-latency traffic exchange between local internet service providers and content networks.
Bare Metal: Bare metal server options are available from select local and regional providers. Availability from major global brands is limited, with most deployments being custom solutions.
Power Analysis
Average Cost Of Power: Expect industrial power costs to range from approximately €0.07 to €0.11/kWh, as of September 2025. These competitive rates make the market attractive for compute-heavy workloads compared to more expensive European locations.
Power Grid Reliability: The power grid in and around Tbilisi is reasonably stable for a developing market. Modern data centers are built with significant redundancy, including dual power feeds, enterprise-grade UPS systems, and on-site diesel generators to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Tbilisi are situated to serve the city's central business districts. This supports key industries including government, financial services, and a growing technology sector.
Regional Market Reach: T'bilisi provides a strategic base for serving Georgia, Armenia, and Azerbaijan. Its location also makes it a potential digital springboard for businesses expanding into Central Asian markets.
Tax Advantage For Data Centers: Georgia is known for its simplified tax system and favorable business climate. While there are no nationwide tax exemptions specifically for data centers, companies may find advantages by operating within one of the country's Free Industrial Zones (FIZs).
Natural Disaster Risk
Georgia has a moderate overall disaster risk profile, with a score of 3.4 out of 10, as of September 2025. The primary natural hazards requiring consideration for infrastructure deployments are seismic activity and flooding.
Key risks include:
- Earthquake: Score of 7.2
- River Flood: Score of 6.1
- Coastal Flood: Score of 6.0 (Impacting Black Sea regions)
- Drought: Score of 5.6
