Data Centers in Russia

Russia – A Vast, Self-Contained Digital Market

Russia presents a large and complex digital infrastructure market, characterized by significant domestic demand and a focus on serving its vast internal population. With 89 data centers and 10 providers, the ecosystem is tailored for services requiring in-country data residency and low-latency access for its 145 million citizens. This market is best suited for businesses prioritizing reach within Russia and the Commonwealth of Independent States (CIS) over direct, low-latency links to Western cloud hubs.

Russia: At A Glance

Network & Connectivity Ecosystem

Russia's connectivity landscape is robust internally but has limited direct integration with global public cloud providers. The infrastructure is built to serve a geographically immense area with a focus on national traffic exchange.

Carrier Density & Carrier Neutrality: The market includes over 10 primary network carriers operating across 89 facilities, as of September 2025. While carrier choice exists, neutrality varies by facility, with some data centers having deeper ecosystems than others.

Direct Cloud On-Ramps: There are no direct, in-country on-ramps to major Western cloud providers. Accessing hyperscale cloud services requires establishing private network connections to primary European hubs such as Helsinki, Stockholm, or Frankfurt.

Internet Exchange Points (IXPs): The dominant exchange is the MSK-IX in Moscow, which is critical for peering and handling the vast majority of Russia's domestic internet traffic. Other regional IXPs facilitate connectivity in major cities like Saint Petersburg.

Bare Metal: Bare metal server options are widely available from local and regional providers. Global providers like Leaseweb offer services, allowing businesses to deploy dedicated hardware without capital expenditure.

Power Analysis

Russia's power infrastructure is extensive, leveraging a mix of legacy and modern generation sources. While costs are competitive, the grid composition has significant implications.

Average Cost Of Power: Industrial electricity costs generally fall within a range of ₽3.50–₽5.00/kWh, as of September 2025. This competitive pricing is offset by a grid mix that relies heavily on fossil fuels (~65%), nuclear (~20%), and hydro (~14%).

Power Grid Reliability: In major metropolitan areas like Moscow and Saint Petersburg, where most data centers are located, the power grid is well-engineered and offers redundancy through multiple substations. Reliability can be less consistent in more remote regions.

Market Access, Business & Tax Climate

The business environment is shaped by a focus on the large domestic market and specific regulatory requirements.

Proximity To Key Business Districts: Data centers are concentrated around Moscow, the undisputed economic and political center, providing low-latency access to the financial, media, and technology industries. Another key cluster exists around Saint Petersburg.

Regional Market Reach: From facilities in western Russia, organizations can effectively serve the country's most populous regions as well as neighboring CIS nations.

Tax Advantage For Data Centers: There are no national tax incentives specifically for data center investment or operations. The U.S. and Russia have a bilateral investment treaty, but it does not confer special tax advantages for IT infrastructure.

Natural Disaster Risk

Russia faces a medium overall disaster risk, with a national score of 4.4 out of 10, as of September 2025. The risk profile is dominated by specific, geographically concentrated hazards rather than widespread threats.

Key natural hazards include:

• River Flood: The highest natural risk factor (8.4/10), affecting numerous regions with extensive river systems.
• Drought: A significant concern (6.1/10), particularly in the agricultural regions of Southern Russia.
• Coastal Flood: A moderate risk (5.3/10) for facilities near the Baltic, Black, and Caspian Seas.
• Earthquake: A notable but regionalized risk (4.2/10), primarily impacting the Caucasus, Baikal, and Far East regions.

Tropical cyclone and tsunami risks are minimal and geographically isolated. The most significant non-natural risk factors are related to projected and current conflict.