Data Centers in Latvia

Latvia – Resilient Baltic Digital Hub

Latvia serves as a strategic digital gateway for businesses targeting the Baltic states and Northern Europe. Its combination of low-risk geography, competitive power costs fueled by a high percentage of renewables, and favorable tax policies makes it an excellent choice for disaster recovery sites and regional service delivery.

Latvia: At A Glance

Network & Connectivity Ecosystem

Latvia's connectivity is well-suited for serving the Baltic region, offering a stable and growing network environment. The country has a healthy ecosystem of local and regional carriers.

Carrier Density & Carrier Neutrality: With 11 data centers operated by 7 providers as of September 2025, Latvia offers good carrier diversity. Facilities are predominantly carrier-neutral, allowing customers to choose from a range of network service providers to optimize cost and performance.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Latvia as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Azure through dedicated network links to nearby hubs such as Stockholm, Helsinki, or Warsaw.

Internet Exchange Points (IXPs): The primary IXP is the Latvian Internet Exchange (LIX), which facilitates efficient local traffic peering and reduces latency for domestic users. Most international peering occurs via transit providers connecting to larger European exchanges.

Bare Metal: Bare metal server options are available from providers in the region, offering dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity and OVHcloud can serve customers in Latvia.

Power Analysis

Latvia stands out for its cost-effective and green energy profile, making it an attractive location for environmentally conscious and budget-focused operations.

Average Cost Of Power: Industrial electricity costs are approximately US$0.09/kWh as of September 2025. This competitive rate helps significantly lower the total cost of ownership for data center operations. The country's energy mix is dominated by renewables, with about 69% sourced from hydro, biomass, and wind.

Power Grid Reliability: The national power grid is reliable, particularly in and around the capital, Riga, where the majority of data centers are located. The infrastructure supports the uptime requirements of modern digital services.

Market Access, Business & Tax Climate

Latvia's business environment is structured to support foreign investment and provides excellent access to regional markets.

Proximity To Key Business Districts: Data centers are primarily located in or near Riga, the nation's economic center. This proximity provides low-latency connectivity for the financial services, logistics, and IT sectors concentrated in the capital.

Regional Market Reach: Latvia is strategically positioned to serve the Baltic states of Estonia and Lithuania, as well as offering a pathway into the Nordic countries and other parts of Eastern Europe. Its infrastructure supports cross-border data traffic effectively.

Tax Advantage For Data Centers: Latvia offers significant tax advantages through its corporate income tax (CIT) system. The model applies a 0% CIT on reinvested profits, meaning taxes are only paid when profits are distributed as dividends, which is beneficial for capital-intensive data center investments.

Natural Disaster Risk

Latvia has a very low natural disaster risk profile, with an INFORM Risk score of 2.6, classifying it as "Low" risk as of September 2025. This stability is a key advantage for critical infrastructure hosting.

The primary natural hazards, while still rated very low, include:

• River Flood: The highest individual risk factor, though still modest in global terms.
• Coastal Flood: A consideration for facilities near the Baltic Sea coastline.
• Drought: A minor, infrequent risk.
• Earthquake: Seismic activity is negligible.