Data Centers in Latvia

Latvia – Digital Gateway to the Baltic Region

Executive Summary

Latvia serves as a strategic crossroads for enterprises targeting Northern Europe and the Baltics, offering high-density infrastructure in Riga and Liepaja. This market is a top choice for organizations requiring a stable, cost-effective footprint that provides low-latency access to regional financial centers and content delivery networks. By leveraging a high renewable energy mix and competitive operating costs, businesses can achieve resilient, high-performance deployments without the premium price tag of Western European hubs.

Latvia: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 10. As of December 2025, the landscape includes a balanced mix of local incumbents and international tier-1 providers. This environment fosters healthy competition for transit and transport services, ensuring path diversity for mission-critical applications.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of December 2025, there are no native on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within the borders. Enterprises typically reach these platforms via low-latency private waves or PNI to the Stockholm hub.

Internet Exchange Points (IXPs): The market is anchored by LIX and SMILE. These exchanges are vital for keeping local traffic within the country, which slashes hop counts and optimizes the end-user experience for Baltic audiences.

Bare Metal: High-performance bare metal is readily available for workloads that require dedicated compute. Providers like Hivelocity maintain a presence, offering a reliable alternative to the overhead of virtualized public cloud environments.

Power Analysis

Average Cost Of Power: Industrial electricity rates sit at approximately US$0.09/kWh as of December 2025. This pricing is highly competitive within Northern Europe, allowing operators to manage high-density AI or compute clusters while maintaining predictable margins.

Power Grid Reliability: The Latvian grid is well-engineered and relies on a diversified generation mix of hydro, biomass, and wind. Major data center clusters in Riga benefit from redundant, multi-substation support, providing the reliability required for 24/7 operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data center facilities are concentrated in and around Riga, providing immediate access to the nation's financial heart and a vibrant tech ecosystem. This physical proximity translates to single-digit millisecond latency for the country’s core economic drivers.

Regional Market Reach: Latvia is the central link in the Baltic trio. From a Riga-based deployment, a business can effectively serve Estonia, Lithuania, and the broader Nordic region with exceptional speed and lower transit costs.

Tax Advantage For Data Centers: The local tax regime encourages long-term infrastructure growth by only taxing distributed profits. This allows companies to reinvest capital back into hardware and facility improvements without immediate corporate tax hits.

Natural Disaster Risk

Risk Score: Low (2.6) as of December 2025. Latvia is one of the most geologically secure locations in Europe, making it a safe harbor for physical assets.

• River Flood (6.6): This is the most notable localized risk, particularly near the Daugava River. Top-tier providers mitigate this through site selection on elevated terrain or purpose-built flood defenses.
• Coastal Flood (3.6): Primarily a regional risk for coastal facilities; most Riga-based inland sites are not materially affected.
• Drought (2.6): A minor risk that can occasionally impact hydro-power generation or specific cooling requirements.
• Earthquake (0.1): Seismic activity is practically non-existent, ensuring the long-term safety of sensitive hardware.

Other hazards such as tropical cyclones and tsunamis are not material risks for this geography.