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Data Centers in Riga

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Riga – Baltic Hub for Low-Latency Connectivity

Riga is a strategic digital gateway connecting the Nordics, Central Europe, and the CIS region. For businesses requiring reliable, low-latency access to these markets, Riga offers a cost-effective and low-risk environment, ensuring high-performance delivery of services and applications. Its combination of robust connectivity and competitive operational costs makes it an excellent choice for edge deployments and regional hubs.

Riga: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber connectivity linking Northern and Eastern European markets.
Direct Cloud On-Ramps0 – as of September 2025Nearest major hubs are in Stockholm or Warsaw; private extensions available.
Power CostUS$0.09/kWh – as of September 2025Very competitive pricing, powered by a significant share of renewable energy.
Disaster RiskLow (2.6/10) – as of September 2025Minimal exposure to significant natural hazards, ensuring high operational uptime.
Tax IncentivesYesGeneral investment incentives are available through Special Economic Zones and free ports.
Sales Tax21% VAT – as of September 2025Standard Value Added Tax rate for Latvia.

Network & Connectivity Ecosystem

Riga's connectivity is solid, serving as a key traffic exchange point in the Baltics. The market features a healthy mix of local and international providers.

Carrier Density & Carrier Neutrality: With approximately 7 providers operating 10 data centers, the market offers good choice and competitive pricing, as of September 2025. Facilities generally operate on a carrier-neutral basis, providing access to a variety of networks.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Riga, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network hubs in Warsaw, Stockholm, or Frankfurt via private network interconnects and high-speed wavelength services.

Internet Exchange Points (IXPs): The primary exchange is the Latvian Internet Exchange (LIX), which facilitates most of the local and regional traffic peering. This reduces latency for users within the Baltic states by keeping traffic local.

Bare Metal: Bare metal server options are available in Riga, providing dedicated compute resources for performance-sensitive workloads. Providers like phoenixNAP and IONOS offer solutions in the region.

Power Analysis

Latvia's power infrastructure is reliable and increasingly green, offering significant advantages for data center operations.

Average Cost Of Power: Industrial electricity costs are approximately US$0.09/kWh, as of September 2025. This competitive pricing helps lower the total cost of ownership for colocation and large-scale deployments.

Power Grid Reliability: The power grid in and around Riga is well-engineered and stable, with significant investment in redundancy. The energy mix is dominated by renewables, with hydropower being a major contributor, which adds to supply stability.

Market Access, Business & Tax Climate

Riga provides a business-friendly environment with excellent access to both local and regional markets.

Proximity To Key Business Districts: Data centers in Riga are strategically located to serve the city's central business district and nearby technology parks. This proximity supports financial services, IT development, and logistics industries that require low-latency infrastructure.

Regional Market Reach: From Riga, businesses can effectively serve the entire Baltic region (Latvia, Lithuania, Estonia) and parts of the Nordics and Eastern Europe with low latency. Its geographic position makes it a natural hub for content delivery and service providers targeting these populations.

Tax Advantage For Data Centers: Latvia offers a favorable corporate tax regime where tax is primarily levied on distributed profits, encouraging reinvestment of earnings into business growth. Additionally, Special Economic Zones (SEZs) and free ports provide further tax relief and investment incentives, making it an attractive location for capital-intensive projects like data centers.

Natural Disaster Risk

Latvia has a very low risk profile for natural disasters, making it a safe location for critical infrastructure.

Based on the INFORM Risk Index, Latvia has a Low risk score of 2.6 out of 10, as of September 2025. The primary natural hazards to consider, while still minimal, are related to localized weather and flooding events.

  • River Flood: The highest individual risk factor, though still moderate on a global scale.
  • Coastal Flood: A consideration for a country with a Baltic Sea coastline, but not a primary threat to inland data center locations.
  • Drought: A minor, infrequent risk.
  • Earthquake: Risk is negligible.
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