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Data Centers in Budapest

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Budapest – Strategic Hub for Central & Eastern Europe

Budapest is the primary data center market for Hungary, serving as a strategic digital gateway to Central and Eastern Europe. It offers a compelling balance of reliable infrastructure, competitive power costs, and a low-risk environment. This market is an excellent choice for enterprises needing to establish a low-latency presence to serve customers across the region without the higher costs of Western European hubs.

Budapest: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent terrestrial connectivity to major European hubs like Vienna, Frankfurt, and Prague.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are Vienna and Frankfurt; access via private network extensions is common.
Power Cost€0.10/kWh – as of September 2025Competitive pricing compared to other EU capitals, with a stable, nuclear-heavy energy mix.
Disaster RiskLow (2.3/10) – as of September 2025The region has minimal exposure to significant seismic, weather, or flooding events.
Tax IncentivesNoSpecific data center incentives are not offered under current digital economy policies.
Sales Tax27% VAT – as of September 2025A standard Value Added Tax applies to services and equipment purchases.

Network & Connectivity Ecosystem

Budapest provides a mature and well-connected environment for digital infrastructure, making it a reliable point of presence for reaching Central and Eastern European markets.

Carrier Density & Carrier Neutrality The market features 13 data centers with access to over 6 network service providers, as of September 2025. Multiple carrier-neutral facilities ensure competitive network pricing and interconnection options.

Direct Cloud On-Ramps There are no direct public cloud on-ramps located within Budapest, as of September 2025. Businesses connect to cloud providers by establishing private network links to major hubs like Vienna or Frankfurt, which host dedicated access points for all major clouds.

Internet Exchange Points (IXPs) The primary exchange point is the Budapest Internet Exchange (BIX), which is critical for local traffic exchange and keeping latency low within Hungary and the immediate region. Most major Hungarian networks and service providers peer at BIX.

Bare Metal Bare metal server capacity is readily available from multiple providers. European providers like OVHcloud and Leaseweb offer dedicated server solutions from regional data centers, enabling compute deployments without capital expenditure.

Power Analysis

Average Cost Of Power Industrial power in Budapest is priced at approximately €0.10/kWh, as of September 2025. This competitive rate offers significant operational savings compared to more expensive markets in Western Europe. The country's power mix is dominated by nuclear energy (around 50%) and natural gas, providing a stable baseload supply.

Power Grid Reliability The power grid serving Budapest's data center corridors is modern and reliable. Major facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in the Budapest area are located with strategic access to the city's primary commercial and industrial zones. This proximity supports latency-sensitive applications for the finance, technology, and manufacturing sectors concentrated in the capital.

Regional Market Reach Budapest's location is its greatest strength. It provides a low-latency hub for delivering services to a large population across Hungary, Austria, Slovakia, Romania, Serbia, and Croatia.

Tax Advantage For Data Centers While Hungary does not offer specific tax incentives for data centers, the country's general corporate tax rate is one of the lowest in the European Union. This creates a favorable financial environment for businesses establishing a significant operational presence in the country.

Natural Disaster Risk

Hungary has a low natural disaster risk profile, rated at 2.3 out of 10, as of September 2025. The overall hazard and exposure score is minimal, making it a physically secure location for critical infrastructure.

Key risks to consider:

  • River Flood: This is the most significant natural hazard, though modern flood defenses in Budapest mitigate the risk to commercial areas.
  • Drought: Periodic droughts can impact agriculture and water levels but pose a low direct threat to data center operations.
  • Earthquake: Seismic risk is present but very low compared to other parts of Europe.
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