Data Centers in Riga

Riga – Digital Hub for the Baltic States

Riga is a strategic digital hub for businesses targeting the Baltic states of Latvia, Lithuania, and Estonia. With its low natural disaster risk, favorable power costs, and strong regional connectivity, the market provides a stable and cost-effective environment for deploying critical IT infrastructure, ensuring uptime and reliable access for users across Northern Europe.

Riga: At A Glance

Network & Connectivity Ecosystem

Riga offers a solid connectivity framework, ideal for serving the Baltic region. The market features 10 data centers with a growing ecosystem of service providers.

Carrier Density & Carrier Neutrality: The market includes at least 7 unique network providers as of September 2025. Carrier-neutral facilities provide diverse options for creating resilient network architectures.

Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major hyperscalers as of September 2025. Secure, low-latency connections to providers like AWS, Azure, and Google Cloud are achieved via private network extensions to nearby European hubs such as Stockholm or Warsaw.

Internet Exchange Points (IXPs): The primary exchange is the Latvian Internet Exchange (LIX), which facilitates efficient local traffic peering, reducing latency for regional users. Most international peering is routed through larger European exchanges.

Bare Metal: Bare metal server options are available, providing dedicated, high-performance computing. Providers like Hivelocity and OVHcloud offer solutions suitable for demanding workloads.

Power Analysis

Latvia's power infrastructure is both cost-effective and reliable, with a strong emphasis on renewable energy.

Average Cost Of Power: Industrial power costs average US$0.09/kWh as of September 2025. This competitive pricing helps manage operational expenses for power-intensive deployments. The grid benefits from a renewable energy mix of approximately 69%, primarily from hydropower.

Power Grid Reliability: The power grid in and around Riga is well-engineered and stable, providing reliable power for mission-critical data center operations. Major facilities are typically supported by redundant power feeds and on-site generation.

Market Access, Business & Tax Climate

Riga's business environment is well-suited for technology investment and regional service delivery.

Proximity To Key Business Districts: Data centers in the Riga area are positioned to serve the city's primary financial, technology, and logistics industries. This proximity enables low-latency performance for local enterprise customers.

Regional Market Reach: From Riga, businesses can effectively serve the entire Baltic region, including Estonia and Lithuania, reaching a combined market of over 6 million people with minimal latency.

Tax Advantage For Data Centers: Latvia offers tangible financial benefits for investors. The corporate tax system primarily taxes distributed profits, and Special Economic Zones (SEZs) provide additional investment incentives, creating a highly favorable climate for capital-intensive projects like data centers.

Natural Disaster Risk

Riga has a very low natural disaster risk profile, making it a secure location for IT infrastructure.

The overall INFORM Risk score for Latvia is 2.6 out of 10, classifying it as a low-risk country as of September 2025. Key natural hazard risks are minimal and well below levels that would typically impact data center operations.

Primary environmental risks include:

• River Flood: The highest individual risk factor, though modern infrastructure mitigates significant impact.
• Coastal Flood: A consideration due to the coastal location, but major events are infrequent.
• Drought: A minor risk with limited historical impact on critical infrastructure.
• Earthquake: Seismic risk is negligible.