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Data Centers in Hungary

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Hungary – Strategic Hub for Central & Eastern Europe

Executive Summary

Hungary is a strong choice for companies targeting Central and Eastern Europe. Its digital infrastructure provides a stable, low-risk platform for reaching regional customers with minimal latency. This strategic location helps businesses expand their digital footprint and secure revenue streams across the CEE region.

Hungary: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBGood regional connectivity, secondary to major FLAP hubs.
Direct Cloud On-Ramps0 — as of September 2025Nearest hubs in Vienna and Frankfurt; PNI/wave available.
Power Cost€0.10/kWh, as of September 2025Nuclear-heavy grid provides stable and competitive pricing.
Disaster RiskLow (2.3/10), as of September 2025Primary risks are river flooding and drought; minimal seismic activity.
Tax IncentivesNoNo specific data center tax incentives are currently offered.
Sales Tax27% VAT, as of September 2025Standard Value Added Tax rate for goods and services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Hungary has a developing carrier-neutral ecosystem with at least 13 data centers and 6 major providers listed, as of September 2025. The market is centered around Budapest, where businesses can access a variety of local and international carriers.

Direct Cloud On-Ramps: As of September 2025, there are no direct public cloud on-ramps within Hungary. Businesses typically connect to cloud regions via network PoPs in nearby hubs like Vienna or Frankfurt, using private network interconnects (PNI) or dedicated wavelength services for secure, low-latency access.

Internet Exchange Points (IXPs): The primary peering point is the Budapest Internet Exchange (BIX), which facilitates the majority of domestic traffic exchange and improves local network performance.

Bare Metal: Bare metal services are available from multiple providers. Options include international providers like Leaseweb and OVHcloud, offering dedicated servers for high-performance computing needs.

Power Analysis

Average Cost Of Power: Industrial power is priced competitively at approximately €0.10/kWh, as of September 2025. This competitive rate, supported by a high percentage of nuclear generation, offers predictable operational costs for power-intensive deployments.

Power Grid Reliability: The power grid, particularly in the Budapest metropolitan area, is reliable and well-maintained. Data centers in the region are typically supported by redundant power feeds from multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Budapest, providing low-latency connectivity to the country's financial, technology, and government sectors. This proximity is critical for applications requiring real-time data processing.

Regional Market Reach: Hungary's central location makes it an effective hub for serving markets across Central and Eastern Europe. It offers a strategic base for reaching customers in Austria, Slovakia, Romania, and the Balkans with reduced latency compared to Western European hubs.

Tax Advantage For Data Centers: While Hungary does not offer specific tax incentives for data centers, the country has a competitive general corporate income tax rate. This simplified tax environment can provide financial predictability for foreign investment.

Natural Disaster Risk

Hungary has a low natural disaster risk profile, with an INFORM Risk score of 2.3 out of 10, as of September 2025. The primary environmental hazards are specific and manageable for mission-critical facilities. Key risks include:

  • River Flood: Scored at 7.3, this is the most significant natural hazard, primarily concerning areas along the Danube and Tisza rivers. Data center site selection mitigates this risk.
  • Drought: Rated at 3.1, periodic drought can impact agriculture and water resources but has a low direct impact on data center operations.
  • Earthquake: At 1.8, seismic risk is considered minimal.
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