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Data Centers in Ukraine

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Ukraine – Resilient Digital Infrastructure Hub

Executive Summary

Ukraine offers a unique digital infrastructure market for companies requiring a strategic foothold in Eastern Europe. Despite significant geopolitical challenges, the country's extensive network of data centers and strong connectivity provides a resilient base for serving the large domestic market and neighboring regions. This market is best suited for organizations prioritizing reach and operational tenacity over direct cloud proximity.

Ukraine: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong fiber backbone and numerous cross-border connections ensure reliable regional traffic exchange.
Direct Cloud On-Ramps0 – as of September 2025Access major clouds via network extensions to hubs like Warsaw or Frankfurt.
Power CostUAH 4.50 – 6.00/kWhIndustrial rates vary; the grid relies heavily on nuclear power for baseload stability.
Disaster RiskHigh (5.6/10) – as of September 2025Risk profile is driven primarily by human factors; natural hazard risk is moderate.
Tax IncentivesNoUkraine does not offer specific tax incentives for data center development or operation.
Sales Tax20% VAT – as of September 2025A standard Value Added Tax applies to colocation and connectivity services.

Network & Connectivity Ecosystem

Ukraine's telecommunications landscape is mature and competitive, characterized by a significant number of facilities and a focus on national and regional connectivity.

  • Carrier Density & Carrier Neutrality: With 46 data centers, the market is served by over 3 major national providers and numerous smaller players, as of September 2025. Carrier-neutral facilities are available, primarily in Kyiv, offering choice and competitive pricing for transit and peering.
  • Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers. Businesses connect to cloud services by procuring private network extensions (PNI/wave) to major European hubs such as Warsaw, Poland, or Frankfurt, Germany.
  • Internet Exchange Points (IXPs): The domestic peering scene is robust. Key IXPs like DTEL-IX and UA-IX in Kyiv facilitate the majority of local traffic exchange, reducing latency and lowering transit costs for content and service providers.
  • Bare Metal: Bare metal server options are available from several providers. Companies like OVHcloud and Leaseweb offer dedicated server solutions that can be deployed within the region to serve the Ukrainian market effectively.

Power Analysis

  • Average Cost Of Power: Industrial electricity prices are estimated between UAH 4.50 – 6.00/kWh, as of September 2025. The country's power mix, with a nuclear component of approximately 50–55%, provides a strong foundation for baseload grid capacity, although market conditions can affect final pricing.
  • Power Grid Reliability: The national power grid has demonstrated considerable resilience. Data centers in major cities like Kyiv are typically supported by redundant power feeds from multiple substations and maintain significant on-site fuel reserves for backup generation to ensure high uptime.

Market Access, Business & Tax Climate

  • Proximity To Key Business Districts: The majority of data centers are located in and around Kyiv, the nation's capital. This provides low-latency connectivity to the country's government, financial services, and a rapidly growing technology sector.
  • Regional Market Reach: Ukraine's strategic location makes it an effective hub for serving content and applications to its large domestic population of over 40 million people. It also functions as a digital bridge to other markets in Eastern Europe.
  • Tax Advantage For Data Centers: The tax environment is straightforward, with no special incentives available for data center operators or tenants. This simplifies financial planning, as businesses operate under the standard 20% VAT rate without complex eligibility requirements for tax breaks.

Natural Disaster Risk

Ukraine has a high overall risk rating of 5.6 out of 10, according to the INFORM Risk Index as of September 2025. This score is heavily influenced by human-related factors, including conflict. The risk from natural hazards is considerably lower and is concentrated in specific areas.

Key natural hazards include:

  • River Flood: The most significant natural risk, primarily affecting areas along the Dnieper and other major rivers.
  • Coastal Flood: A moderate risk for regions bordering the Black Sea.
  • Drought: A periodic concern that can impact agriculture and water resources.
  • Earthquake: A low but present risk, with seismic activity generally confined to the Carpathian Mountains region in the west.
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