Data Centers in Russia

Russia – Connecting a Vast Domestic Market

Executive Summary

Russia's digital infrastructure market is defined by its immense scale and focus on serving a large domestic audience. For businesses targeting the country's vast population, establishing a local data center presence is essential for performance, low latency, and compliance with data sovereignty regulations. This market is built for organizations prioritizing access to one of the world's largest internet economies over direct integration with global cloud hubs.

Russia: At A Glance

Network & Connectivity Ecosystem

The Russian connectivity landscape is dominated by strong national carriers providing extensive domestic coverage. While global integration is secondary to internal peering, the market offers a dense and resilient network for reaching local end-users.

Carrier Density & Carrier Neutrality: Over 10 major carriers operate within the country, as of September 2025. A number of carrier-neutral facilities are available, primarily in Moscow and Saint Petersburg, offering access to a broad mix of domestic and regional network providers.

Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major global providers. Organizations requiring dedicated connections to hyperscale clouds must use private network extensions or IP transit services to connect to POPs in European hubs like Helsinki, Stockholm, or Frankfurt.

Internet Exchange Points (IXPs): The market is anchored by MSK-IX in Moscow, one of the largest internet exchanges in the world by traffic volume. It is the primary hub for domestic peering, keeping local traffic within the country for optimal performance and efficiency.

Bare Metal: Bare metal server options are widely available from local providers. Global providers like Leaseweb also offer dedicated server solutions in the market, catering to workloads that demand high performance and direct hardware control.

Power Analysis

Russia's power infrastructure is robust, especially in the western regions where most data centers are located. The grid benefits from a diverse energy mix, which contributes to price stability and supply reliability.

Average Cost Of Power: Industrial power costs typically range from ₽4.00 to ₽6.00/kWh, as of September 2025. This competitive pricing can significantly reduce operational expenditures for large-scale deployments. The national energy mix is approximately 65% fossil fuels, 20% nuclear, 14% hydro, and 1% other renewables.

Power Grid Reliability: The power grid in major metropolitan areas like Moscow is well-engineered and reliable, with data centers typically connected to multiple substations. The vastness of the country means grid quality can vary in less populated regions, but core data center corridors have stable infrastructure.

Market Access, Business & Tax Climate

Deploying infrastructure in Russia is driven by the strategic need to access its massive domestic market and comply with local data residency laws.

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 sectors. Saint Petersburg serves as a secondary hub with strong connectivity to European networks.

Regional Market Reach: A presence in Russia effectively serves its population of over 140 million people across 11 time zones. It also acts as a digital gateway to the Commonwealth of Independent States (CIS), reaching a large Russian-speaking audience in neighboring countries.

Tax Advantage For Data Centers: There are no specific tax incentives for building or operating data centers in Russia. The primary financial and strategic benefits come from direct access to the domestic market and ensuring compliance with data localization laws, which can prevent business interruption.

Natural Disaster Risk

Russia has a moderate overall disaster risk profile, with an INFORM Risk score of 4.4 out of 10, as of September 2025. However, due to its immense size, specific risks are highly localized and often do not impact the primary data center markets in the west.

The most significant natural hazards on a national level include:

• River Flood Risk (8.4/10): A high risk in several regions with major river systems, particularly during spring thaws.
• Drought Risk (6.1/10): A moderate risk, primarily affecting the agricultural regions in the south of the country.
• Earthquake Risk (4.2/10): A notable risk concentrated in specific zones, such as the Caucasus Mountains and the Far East, far from the main colocation hubs.