Data Centers in Ukraine

Ukraine – Resilient Infrastructure at Europe's Edge

Executive Summary

Ukraine presents a unique digital infrastructure market for companies targeting its large domestic population and seeking a foothold in Eastern Europe. While direct cloud access requires extension from neighboring hubs, the country offers a substantial number of data centers and a strong core network. This market is best suited for organizations prioritizing local application performance and content delivery over direct, low-latency cloud interconnection.

Ukraine: At A Glance

Network & Connectivity Ecosystem

Ukraine's connectivity landscape is characterized by a dense domestic network with strong international links, primarily routed through Western Europe.

Carrier Density & Carrier Neutrality: The market includes over 46 data centers, served by at least 3 major national carriers and various regional ISPs, as of September 2025. Carrier-neutral facilities are concentrated in major cities like Kyiv, providing interconnection options.

Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers, as of September 2025. Businesses require private network extensions or IP transit to connect to cloud regions. The nearest hubs for dedicated access are Warsaw, Poland, and Frankfurt, Germany.

Internet Exchange Points (IXPs): The Ukrainian Internet Exchange (UA-IX) is the primary peering point in the country. It facilitates efficient, low-latency traffic exchange between local ISPs, content providers, and enterprises, keeping domestic traffic within national borders.

Bare Metal: Bare metal server options are available, primarily from regional European providers. Services from providers like OVHcloud offer dedicated server infrastructure from nearby European locations to serve the Ukrainian market.

Power Analysis

Average Cost Of Power: Industrial electricity pricing is subject to significant fluctuation. The national power grid is dominated by nuclear energy (50–55%), with fossil fuels, hydro, and a small percentage of renewables making up the balance. This diverse mix provides a degree of supply stability, but costs are not as predictable as in other European markets.

Power Grid Reliability: The energy infrastructure has faced extraordinary challenges. However, commercial data centers in key metropolitan areas are typically built with significant power redundancy, including multiple grid connections where possible, UPS systems, and on-site diesel generators to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are primarily located in and around Kyiv, the nation's political, financial, and technological capital. This proximity provides low-latency connectivity for government, finance, and the growing tech sector based in the city.

Regional Market Reach: With a population of over 40 million, Ukraine is a substantial market in its own right. Its strategic location also makes it a viable digital services hub for neighboring countries in Eastern Europe.

Tax Advantage For Data Centers: The primary advantage of Ukraine's tax climate is its straightforwardness. Lacking special incentives, it provides a predictable fiscal environment with a standard 20% VAT, allowing for clear financial planning without navigating complex eligibility rules.

Natural Disaster Risk

Ukraine has a high overall risk profile, with a rating of 5.6 out of 10, as of September 2025. While much of this score is influenced by man-made hazards, operators must also plan for specific environmental threats.

The most significant natural risks include:

• River Flood: The highest natural risk factor (6.2/10), particularly along the Dnieper River and other major waterways.
• Coastal Flood: A notable risk (5.0/10) for infrastructure located near the Black Sea coast.
• Drought: A moderate concern (2.4/10) that can impact agriculture and water resources.
• Earthquake: A low but present risk (2.0/10), concentrated in the southwestern parts of the country.