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Data Centers in Riga

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Riga – Your Strategic Digital Gateway to the Baltics

Riga is the premier digital hub for the Baltic states, offering a unique combination of excellent connectivity, low operational risks, and a favorable business environment. This market is ideal for enterprises that require a reliable foothold to serve Latvia, Lithuania, Estonia, and the wider Northern European region, ensuring high-speed content delivery and application performance.

Riga: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong fiber infrastructure provides reliable, low-latency routes across the Baltic region.
Direct Cloud On-Ramps0 – as of September 2025Connect to major cloud providers via network extensions from hubs like Warsaw or Stockholm.
Power Cost≈ $0.09/kWh – as of September 2025Competitively priced, with a high percentage (~69%) from renewable sources.
Disaster RiskLow (2.6/10) – as of September 2025Minimal exposure to significant natural hazards ensures high operational uptime.
Tax IncentivesYesInvestment incentives available via Special Economic Zones and a favorable corporate tax regime.
Sales Tax21% VAT – as of September 2025Standard Value Added Tax rate applied to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market is served by 7 national and international carriers as of September 2025. Multiple colocation facilities in Riga operate on a carrier-neutral basis, providing diverse connectivity options.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Latvia. Businesses connect to the world’s leading cloud providers, including AWS, Google Cloud, and Azure, via private network connections to major hubs such as Warsaw, Stockholm, or Frankfurt.

Internet Exchange Points (IXPs): Local peering is facilitated through the Latvian Internet Exchange (LIX), which helps contain traffic within the region for lower latency and improved performance for local users.

Bare Metal: Bare metal server options are available from providers in the region, offering dedicated compute resources for performance-critical applications.

Power Analysis

Average Cost Of Power: Industrial electricity costs are approximately $0.09/kWh as of September 2025, presenting a competitive advantage for energy-intensive operations. This favorable pricing helps reduce the total cost of ownership for data center deployments.

Power Grid Reliability: Latvia's power grid is reliable, supported by a strong energy mix that includes approximately 69% renewables, primarily from hydro and biomass. Data centers in Riga are typically connected to redundant power sources, ensuring consistent and dependable operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in and around Riga provide low-latency access to the city's financial services hub, technology parks, and logistics centers. This proximity is critical for industries that depend on real-time data processing, such as finance and e-commerce.

Regional Market Reach: Riga’s strategic location makes it an effective base for serving the combined population of the Baltic states. Its well-developed infrastructure offers efficient connectivity to Lithuania, Estonia, and other markets across the Baltic Sea.

Tax Advantage For Data Centers: Latvia offers compelling financial benefits for businesses. The corporate income tax is levied only on distributed profits, encouraging reinvestment, while Special Economic Zones (SEZs) and free ports provide additional investment incentives.

Natural Disaster Risk

Latvia has a very low natural disaster risk profile, rated as Low (2.6 out of 10) as of September 2025. This stability is a significant advantage for mission-critical infrastructure requiring maximum uptime and minimal environmental disruption.

Key environmental risks are limited and manageable:

  • River Flood: The most notable risk, primarily in specific, predictable areas.
  • Coastal Flood: A moderate consideration due to the country's position on the Baltic Sea.
  • Drought: A minor risk that can impact agriculture but has little direct effect on data center infrastructure.

Risks from earthquakes and tropical cyclones are negligible.

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