Data Centers in T'bilisi

Tbilisi – Strategic Digital Hub for the Caucasus

Executive Summary

Tbilisi is an emerging data center market positioned as a strategic digital entry point into the Caucasus region. It is best suited for organizations requiring a foothold to serve Georgia, Armenia, and Azerbaijan. Deploying infrastructure here provides low-latency access to these developing economies while maintaining a competitive operational cost structure.

Tbilisi: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market includes 3 data centers with service from 1 primary provider as of September 2025. Carrier-neutral facilities are available, providing a foundation for building resilient, multi-carrier network architectures in the region.

Direct Cloud On-Ramps: There are 0 dedicated cloud on-ramps located in Tbilisi, supporting 0 cloud regions directly. Access to major cloud providers like AWS, Google Cloud, and Azure is achieved through network extensions or IP transit to major European hubs such as Frankfurt or closer regional hubs like Istanbul.

Internet Exchange Points (IXPs): The Georgian Internet Exchange (G-IX) is the primary peering point in the country. Its presence helps contain domestic traffic and reduces latency for end-users within Georgia.

Bare Metal: Bare metal server capacity is available from select providers in the region. These services are typically deployed to support workloads requiring dedicated physical hardware, with providers like Leaseweb offering solutions in the broader European market.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated to be between ~GEL 0.25–0.35/kWh as of September 2025. This competitive pricing can produce significant operational savings for high-density computing and storage-intensive workloads compared to more mature European markets.

Power Grid Reliability: The power grid serving Tbilisi's commercial districts is reliable for mission-critical operations. Data centers in the area are built with standard N+1 or 2N UPS and generator backup to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Tbilisi provide low-latency connectivity to Georgia's central financial, government, and commercial sectors, which are all concentrated within the capital city. This is essential for applications in banking, public services, and digital media.

Regional Market Reach: From Tbilisi, a single deployment can effectively serve a population of over 15 million across the Caucasus region, including Georgia, Armenia, and Azerbaijan. This makes it a cost-effective hub for regional service delivery.

Tax Advantage For Data Centers: Georgia maintains a simplified and attractive tax framework to encourage foreign investment. Businesses operating within the country's Free Industrial Zones can benefit from exemptions on VAT, import duties, and corporate profit tax, creating a highly favorable financial environment for data center operations.

Natural Disaster Risk

Georgia has a moderate overall risk profile for natural disasters, with an INFORM Risk score of 3.4 out of 10 as of September 2025. The risk assessment indicates that while the overall threat is manageable, facilities must be engineered to withstand specific, known hazards.

The primary natural risks for infrastructure in the region are:

• Earthquake: The most significant risk (7.2/10), reflecting the country's position in a seismically active zone.
• River Flood: A considerable hazard (6.1/10), particularly for facilities located near the Mtkvari River and its tributaries.
• Drought: A moderate risk (5.6/10) that can impact power generation, specifically from hydropower sources.