Data Centers in Kizilyurt
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Kizilyurt – Regional Hub for Southern Russia
Kizilyurt, Russia, presents a developing market for localized digital infrastructure. It is best suited for organizations requiring a presence in the North Caucasus region to serve local populations and industrial operations. Deploying compute resources here can reduce latency for end-users in a geographically complex area, though it requires careful planning for interconnection with major national and global hubs.
Kizilyurt: At A Glance
Factor | Rating / Data | Notes |
---|---|---|
Global Connectivity Grade | B | Adequate for regional needs, but reliant on backhaul to major national hubs. |
Direct Cloud On-Ramps | 0 – as of September 2025 | Connectivity to major cloud providers is available via hubs like Moscow. |
Power Cost | RUB 4.50-5.50/kWh (est.) | Industrial power costs are generally lower than in major European markets. |
Disaster Risk | Medium (4.4/10) | Dominated by flood and drought risks, requiring site-specific due diligence. |
Tax Incentives | No | No specific data center incentives are in place, as of September 2025. |
Sales Tax | 20% VAT (approx.) | The standard national Value Added Tax applies, as of September 2025. |
Network & Connectivity Ecosystem
The connectivity landscape in Kizilyurt is tailored for regional service delivery, with primary interconnection points located in larger Russian metropolitan areas.
Carrier Density & Carrier Neutrality Carrier availability is estimated to be below 10 providers locally, as of September 2025. The market has at least one carrier-neutral data center, providing foundational interconnection options, though diversity is limited compared to primary markets.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Kizilyurt, as of September 2025. Access to hyperscale cloud regions requires establishing private network connections (PNI or wave) to major hubs like Moscow, where all major cloud providers have a presence.
Internet Exchange Points (IXPs) Public peering is not established locally. The majority of network peering is handled privately or routed through major national exchanges in Moscow, such as MSK-IX, to ensure efficient traffic exchange across Russia.
Bare Metal Bare metal server options are available, primarily through national providers. On-demand compute from providers like Leaseweb can be provisioned, often with deployment managed from central Russian data centers.
Power Analysis
Russia's power infrastructure is extensive, leveraging a diverse mix of generation sources that provide generally reliable and cost-effective energy for industrial use.
Average Cost Of Power The estimated industrial power cost in the region ranges from RUB 4.50–5.50/kWh, as of September 2025. This competitive pricing can significantly reduce operational expenditures for high-density compute deployments. The grid's energy mix is approximately 65% fossil fuels, 20% nuclear, and 14% hydroelectric.
Power Grid Reliability The power grid serving industrial areas is generally stable. Data centers in the region are typically supported by redundant power feeds and on-site generation to ensure high uptime for critical operations.
Market Access, Business & Tax Climate
Kizilyurt provides a strategic point of presence for serving the Republic of Dagestan and the broader North Caucasus Federal District.
Proximity To Key Business Districts Local data centers serve the immediate industrial and commercial needs of Kizilyurt and surrounding cities. The location is strategic for enterprises focused on agriculture, manufacturing, and regional logistics.
Regional Market Reach An infrastructure deployment in Kizilyurt offers low-latency access to a population of several million across the North Caucasus. It acts as a digital gateway for services targeting this specific and growing economic region.
Tax Advantage For Data Centers Russia does not currently offer widespread, specific tax incentives for data center construction or operation. Businesses should expect to operate under the standard national corporate tax and VAT structure.
Natural Disaster Risk
Kizilyurt has a medium overall risk profile, with a composite score of 4.4 out of 10, as of September 2025. The primary threats are environmental, while seismic risk is moderate.
Key natural hazards for the region include:
- River Flood: Score 8.4
- Drought: Score 6.1
- Coastal Flood: Score 5.3
- Earthquake: Score 4.2
- Tsunami: Score 4.2
While some coastal and tsunami risks are noted in national data, the most direct and frequent threats for this specific area are related to river flooding and drought conditions.