Data Centers in Ukraine

Ukraine – Resilient Infrastructure for Regional Connectivity

Executive Summary

Ukraine provides a strategic digital gateway for organizations requiring high-density local infrastructure and hardened network paths across Eastern Europe. It is a vital market for firms prioritizing operational continuity and massive scale within a geographically significant corridor between Western markets and regional centers.

Ukraine: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 50. As of December 2025, the landscape supports roughly 50–60 providers. This ecosystem allows operators to choose from a wide range of fiber paths and transit options to optimize performance without being locked into a single provider.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. As of December 2025, native on-ramps for major global clouds are absent. Enterprises bridge this gap by using private lines or waves to connect to the nearest major cloud clusters in Warsaw or Frankfurt, ensuring low-latency access to hyperscale resources.

Internet Exchange Points (IXPs): UA-IX and Giganet serve as the primary local exchanges. These platforms keep regional traffic local to reduce latency and transit costs, which is essential for domestic content delivery and peering between service providers.

Bare Metal: High-performance compute requirements are satisfied through available bare metal services. Global providers like phoenixNAP and Leaseweb offer reliable infrastructure for businesses needing dedicated hardware without the overhead of physical facility management.

Power Analysis

Average Cost Of Power: Industrial electricity rates are estimated between $0.12 and $0.15/kWh, as of December 2025. The generation mix is led by Nuclear (≈50–55%), followed by Fossil fuels (≈35–40%), Hydro (≈5–7%), and Renewables (≈3–6%). This energy profile supports a predictable cost structure for large-scale hardware deployments.

Power Grid Reliability: Data center clusters in major metropolitan areas like Kyiv utilize well-engineered redundant systems. Most professional facilities feature multi-substation support to protect against single points of failure and ensure enterprise-level uptime for critical workloads.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are strategically located near Kyiv administrative and financial centers. This proximity is vital for the banking, technology, and government sectors that require immediate access to physical hardware and low-latency connections to core operations.

Regional Market Reach: Ukraine acts as a massive digital gateway, serving a domestic population of over 40 million people. Its geographical position makes it a strategic point for data moving between Central Europe and the broader regional markets.

Tax Advantage For Data Centers: There are currently no specific tax incentives or subsidies available for data center operators. Businesses must account for the standard 20% VAT and established corporate tax structures when planning regional infrastructure investments.

Natural Disaster Risk

Overall Risk: High (5.6/10), as of December 2025.

The overall risk profile is elevated primarily due to regional stability factors, but the natural hazard environment is manageable with specific engineering for site selection.

• River Flood (6.2): A primary concern for facilities near major waterways; proper site elevation is critical for facility safety.
• Coastal Flood (5.0): Represents a regional risk for southern coastal facilities, though it is not a factor for the Kyiv cluster.
• Epidemic (3.8): Managed through standard health protocols and remote hands services to ensure facility access.
• Drought (2.4): A secondary concern with minimal direct impact on facility uptime in most regions.
• Earthquake (2.0): Low risk; most facilities are built to standard seismic codes.

Other climate risks remain minor or are not listed as material threats to regional data center operations as of December 2025.