Data Centers in Latvia

Latvia – Strategic Gateway to the Baltic Sea Region

Latvia is a strategic digital infrastructure location for businesses targeting the Baltic states and Northern Europe. The country offers a stable operating environment with low natural disaster risk and competitive power costs, making it a reliable choice for deploying edge computing, content delivery, and regional disaster recovery solutions.

Latvia: At A Glance

Network & Connectivity Ecosystem

Latvia's connectivity ecosystem is well-suited for regional traffic exchange and serving the Baltic market. While not a primary European hub, it provides capable and resilient infrastructure.

Carrier Density & Carrier Neutrality: The market includes 7 providers operating 11 data centers, as of September 2025. This provides a good selection of local and regional carriers, with several carrier-neutral facilities available, primarily in Riga.

Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers, as of September 2025. Businesses connect to cloud services like AWS, Google Cloud, and Azure by extending their networks to major hubs such as Stockholm, Helsinki, or Warsaw via private network interconnects (PNI) or high-capacity wave services.

Internet Exchange Points (IXPs): The primary exchange is the Latvian Internet Exchange (LIX), which facilitates most of the country's IP traffic peering. Using LIX reduces latency for local users and improves network performance within the Baltic region.

Bare Metal: Bare metal server options are readily available in Latvia. Providers like Hivelocity offer dedicated server solutions for workloads requiring direct hardware access and maximum performance.

Power Analysis

Latvia presents an attractive power profile, combining low costs with a strong commitment to renewable energy.

Average Cost Of Power: Industrial electricity costs are approximately US$0.09/kWh, as of September 2025. This competitive rate significantly reduces operational expenditures for power-intensive deployments.

Power Grid Reliability: The national power grid is reliable, particularly in the capital region of Riga where most data centers are located. The grid benefits from a high proportion of renewable energy, especially hydropower, which contributes to its stability and predictability.

Market Access, Business & Tax Climate

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

Proximity To Key Business Districts: Data centers are concentrated in and around Riga, the nation's capital and largest economic center. This proximity serves the financial, IT, and logistics industries that are central to the Latvian economy.

Regional Market Reach: From Latvia, organizations can effectively serve the entire Baltic region (Estonia, Lithuania) and parts of Scandinavia and Eastern Europe with low latency. Its strategic location on the Baltic Sea makes it a logistical nexus.

Tax Advantage For Data Centers: Latvia offers a significant tax advantage through its corporate income tax model, where tax is only levied on distributed profits. Additionally, Special Economic Zones (SEZs) and free ports provide further tax relief and investment incentives for infrastructure projects.

Natural Disaster Risk

Latvia has a very low natural disaster risk profile, ensuring a stable and secure environment for critical IT infrastructure. The country's overall INFORM Risk score is 2.6, placing it in the "Low" risk category, as of September 2025.

Key natural hazard scores are minimal, with the most notable risks being:

• River Flood: 6.6
• Coastal Flood: 3.6
• Drought: 2.6

Risks from earthquakes, tsunamis, and tropical cyclones are negligible, making Latvia one of the safer locations in Europe for data center operations.