Data Centers in Latvia

Latvia – Strategic Baltic Digital Gateway

Executive Summary

Latvia is an excellent market for businesses requiring a resilient, cost-effective digital presence in the European Union with strategic reach into the Baltic, Nordic, and Eastern European regions. Its stable, low-risk environment and significant use of renewable energy ensure predictable operational costs and support sustainability goals. This combination delivers reliable performance for applications serving Northern Europe.

Latvia: At A Glance

Network & Connectivity Ecosystem

Latvia’s digital infrastructure is reliable and well-suited for regional workloads. The market is concentrated in Riga, the nation's capital and primary economic center.

Carrier Density & Carrier Neutrality The market includes 11 data centers served by over 7 unique network providers as of September 2025. While smaller than primary European hubs, this ecosystem offers sufficient choice for redundant connectivity from key European and local carriers. Carrier-neutral facilities are available, providing flexibility for building multi-carrier network solutions.

Direct Cloud On-Ramps There are no hyperscale cloud provider regions or direct on-ramps located within Latvia as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure by using private network extensions to major European hubs such as Warsaw, Stockholm, or Frankfurt.

Internet Exchange Points (IXPs) The primary local peering point is the Latvian Internet Exchange (LIX). LIX plays a vital role in keeping domestic traffic within the country, which significantly reduces latency for local users and services. Most international peering is handled through transit providers connecting to larger European exchanges.

Bare Metal Bare metal server capacity is readily available in Latvia. Providers like OVHcloud offer dedicated server solutions from facilities in the region, providing a strong option for workloads that demand single-tenant hardware for performance or security reasons.

Power Analysis

Latvia offers a compelling power profile characterized by competitive costs and a strong commitment to renewable energy.

Average Cost Of Power Industrial electricity costs average around US$0.09/kWh as of September 2025, which is highly competitive for the European market. This attractive pricing helps organizations manage operational expenditures for power-intensive deployments. The grid's energy mix is approximately 69% renewable, primarily from hydropower and biomass.

Power Grid Reliability The national power grid is reliable and aligns with European Union standards. Data centers in the Riga area are supported by a well-engineered infrastructure with redundancy. The significant contribution from stable hydropower sources further enhances grid stability.

Market Access, Business & Tax Climate

Latvia's business environment is structured to attract foreign investment with a favorable tax system and strategic geographic positioning.

Proximity To Key Business Districts Most data centers are located in or near Riga. This proximity provides low-latency connectivity to the country's main financial, governmental, and logistics organizations, making it ideal for supporting local business operations.

Regional Market Reach Positioned on the Baltic Sea, Latvia serves as an effective digital gateway to the 6 million people across the Baltic states of Estonia, Latvia, and Lithuania. It also provides a strategic connection point for businesses looking to serve markets in the Nordics and Eastern Europe.

Tax Advantage For Data Centers The national corporate tax system primarily taxes distributed profits, allowing companies to reinvest earnings for growth without a tax burden. Additionally, Special Economic Zones (SEZs) and free ports provide significant corporate tax discounts and other incentives for new technology investments.

Natural Disaster Risk

Latvia has a very low-risk profile for natural disasters, making it a physically secure location for critical IT infrastructure.

Based on the INFORM Risk Index, Latvia scores 2.6 out of 10, classifying it as a low-risk country as of September 2025. This stability is a key advantage for ensuring high uptime and business continuity.

The primary environmental risks to consider are:

• River Flood: The highest individual risk factor, though it is concentrated in specific floodplains.
• Coastal Flood: A secondary risk for facilities located in low-lying coastal areas near Riga.
• Drought: A minor consideration with infrequent impact on operations.

Risks from earthquakes, tsunamis, and tropical cyclones are negligible.