Data Centers in Kizilyurt
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Kizilyurt – Strategic Infrastructure for the North Caucasus
Executive Summary
Kizilyurt serves as a critical local hub for enterprises requiring data residency and low-latency access within the Republic of Dagestan. This market is vital for service providers managing regional workloads and securing proximity to industrial operations near the Sulak River basin. High-stakes uptime in this location ensures consistent digital operations where national reach is mandatory.
Kizilyurt: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional links with strong national backhaul. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest on-ramp hub is Moscow; private wave extensions available. |
| Power Cost | $0.05 – $0.08/kWh – as of December 2025 | Competitive rates supported by regional hydroelectric and fossil generation. |
| Disaster Risk | Moderate (4.4/10) – as of December 2025 | Primary concerns involve river flooding and seasonal drought. |
| Tax Incentives | No | No specific local incentives for data center development exist. |
| Sales Tax | 20% VAT – as of December 2025 | Standard national value-added tax applies to all services. |
Network & Connectivity Ecosystem
Kizilyurt functions as a specialized gateway for traffic moving through the North Caucasus region. As of December 2025, the connectivity landscape is defined by specific regional requirements.
Carrier Density & Carrier Neutrality: Carrier count: 1–3 carriers. The market features a small number of dedicated local and national providers. This concentration ensures focused support for regional requirements as of December 2025.
Direct Cloud On-Ramps: There are 0 direct on-ramps in the city as of December 2025. Local operators typically bridge this gap by establishing private network interconnects or high-capacity wave services to Moscow. This setup allows for secure access to major cloud environments while maintaining a local footprint.
Internet Exchange Points (IXPs): There are no major public IXPs located directly in Kizilyurt. Most local peering occurs through private agreements or via larger regional exchanges in Rostov-on-Don or Moscow as of December 2025.
Bare Metal: High-performance compute resources are available via regional providers or through fallback options like Leaseweb and OVHcloud, providing flexible hardware deployment for local workloads as of December 2025.
Power Analysis
Kizilyurt benefits from a diverse energy mix that supports industrial stability and competitive pricing.
Average Cost Of Power: Industrial electricity is estimated between $0.05 and $0.08/kWh as of December 2025. This pricing reflects a generation mix consisting of approximately 65% fossil fuels, 20% nuclear, and 14% hydroelectric power. These rates provide a cost-effective foundation for energy-intensive operations.
Power Grid Reliability: The local grid is supported by multi-substation infrastructure designed for industrial use. Redundant power paths ensure reliable delivery to critical facilities in the Sulak River basin area.
Market Access, Business & Tax Climate
The economic environment in Kizilyurt is defined by its strategic position within a growing industrial corridor.
Proximity To Key Business Districts: Data centers here are located near major transport routes and administrative centers in Dagestan. This proximity is vital for government agencies and industrial firms that require immediate access to their physical infrastructure.
Regional Market Reach: Kizilyurt is positioned to serve a population of over three million people across the Republic of Dagestan and neighboring territories. It acts as a primary digital entry point for the southern Russian frontier.
Tax Advantage For Data Centers: There are currently no specialized tax incentives for the data center sector. The fiscal environment follows standard national corporate structures, providing a predictable and stable landscape for long-term budget planning.
Natural Disaster Risk
Kizilyurt carries a Moderate (4.4/10) risk profile as of December 2025. The infrastructure in the area is engineered to manage specific environmental challenges common to the North Caucasus.
- River Flood (8.4): High risk due to proximity to the Sulak River; facilities typically employ elevated structural designs.
- Drought (6.1): Moderate risk; impact is primarily indirect regarding cooling resource management.
- Coastal Flood (5.3): Moderate risk; considered a regional factor related to the Caspian basin.
- Earthquake (4.2): Moderate risk; seismic building codes are strictly enforced for critical infrastructure.
- Tsunami (4.2): Moderate risk; primarily an indirect regional consideration.
- Epidemic (3.1): Moderate risk; standard regional health protocols are in place.
Other hazards, such as tropical cyclones or extreme wind events, are considered minor for this geography as of December 2025.
