Data Centers in Qom
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Qom – Emerging Iranian Digital Hub
Qom serves as a secondary digital market within Iran, primarily for organizations requiring geographic diversity from Tehran. Its main value is for domestic service delivery and as a disaster recovery location for businesses operating in the capital. The challenging operational environment and high-risk profile make it a specific choice for entities with in-country requirements.
Qom: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects national infrastructure; local last-mile access may vary. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extensions to regional hubs like Dubai or Istanbul. |
| Power Cost | IRR 2,500 – 4,500/kWh | Extremely low government-subsidized industrial rates. |
| Disaster Risk | High (6.0/10) | Significant earthquake and flood risk are the primary concerns. |
| Tax Incentives | No | No specific incentives for data center development exist. |
| Sales Tax | 9.0% VAT – as of September 2025 | Standard national rate applies to most equipment and services. |
Network & Connectivity Ecosystem
The digital infrastructure in Qom is oriented towards serving the domestic market, with connections routing through Iran's national telecommunications backbone.
Carrier Density & Carrier Neutrality: Carrier density is limited, with fewer than 10 national and regional providers active in the market as of September 2025. True carrier neutrality is uncommon, as the market is dominated by the state-affiliated Telecommunication Infrastructure Company (TIC).
Direct Cloud On-Ramps: There are no direct cloud on-ramps from hyperscale providers within Iran as of September 2025. Businesses connect to cloud services like AWS, Google Cloud, or Azure by procuring private network links to major international hubs such as Dubai, UAE, or Istanbul, Turkey.
Internet Exchange Points (IXPs): Peering is centralized through Iran's national IXP, managed by the TIC, which has points of presence in major cities. Traffic exchange in Qom relies on connecting to this national backbone rather than a local, independent IXP.
Bare Metal: Bare metal server options are available from a small number of local and regional hosting companies. These providers focus on serving the domestic Iranian market.
Power Analysis
Iran's power infrastructure presents a mix of extremely low costs and potential reliability challenges.
Average Cost Of Power: Industrial electricity rates are estimated between IRR 2,500 – 4,500/kWh as of September 2025. These heavily subsidized prices are among the lowest in the world, offering a significant operational cost advantage.
Power Grid Reliability: The national grid is approximately 95% reliant on fossil fuels. While urban centers are prioritized, the grid can experience instability. Consequently, any data center deployment requires enterprise-grade UPS systems and sufficient on-site generator fuel storage to guarantee uptime.
Market Access, Business & Tax Climate
Qom's strategic value is tied to its location within Iran and its proximity to the capital.
Proximity To Key Business Districts: Qom is a major religious and academic center. Its proximity to Tehran makes it a viable secondary or disaster recovery site for government agencies and commercial enterprises headquartered in the capital.
Regional Market Reach: The market primarily serves the population of central Iran. Digital services hosted in Qom can effectively reach tens of millions of domestic users with low latency.
Tax Advantage For Data Centers: There are no specific tax incentives for data center construction or operation. Any potential advantages would be part of broader, national-level investment laws which require significant local engagement to utilize.
Natural Disaster Risk
Qom is in a region with a High risk profile, scoring 6.0 out of 10 according to the INFORM Risk Index as of September 2025. This score reflects significant natural and human-related hazards combined with moderate coping capacity.
The primary natural disaster threats for infrastructure in this area include:
- Earthquake: The country sits on several major fault lines, making seismic activity the most severe and probable threat (9.3/10).
- River Flood: Seasonal rainfall can lead to significant river flooding in the region (7.3/10).
- Drought: The area is susceptible to prolonged periods of severe drought, impacting water resources (6.5/10).
While the national risk profile includes coastal flooding and tsunami, these are not direct threats to the inland location of Qom. The INFORM index also highlights very high risk from human factors, including projected conflict.
