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Data Centers in Ukraine

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Explore Markets in Ukraine

Ukraine – Resilient Digital Hub for Eastern Europe

Executive Summary

Ukraine presents a unique market for organizations requiring in-country data residency and those committed to supporting the nation's digital reconstruction. While navigating significant geopolitical challenges, its technology sector demonstrates remarkable resilience. Establishing an infrastructure footprint here secures a position in a market with substantial long-term growth potential and supports its continued integration with European digital ecosystems.

Ukraine: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong terrestrial fiber routes connect to major European hubs.
Direct Cloud On-Ramps0 — as of September 2025Nearest hubs are in Warsaw and Frankfurt; private network extensions are available.
Power Cost~UAH 4.50-6.00/kWhNuclear power provides a significant baseload, but prices reflect current grid pressures.
Disaster RiskHigh (5.6/10) — as of September 2025Score is driven by human factors; natural disaster risk is comparatively moderate.
Tax IncentivesNoNo specific tax incentives for data centers are currently offered.
Sales Tax20% VAT — as of September 2025Standard Value Added Tax rate applies to services.

Network & Connectivity Ecosystem

Ukraine maintains a surprisingly robust and well-connected network infrastructure, hardened by recent events. The market is served by three national providers and dozens of regional ISPs operating out of 46 colocation facilities, primarily in Kyiv and Lviv, as of September 2025.

Carrier Density & Carrier Neutrality: The market features several national and regional carriers. Carrier-neutral facilities in Kyiv provide the primary hubs for interconnection, offering diverse connectivity options to both local and international networks.

Direct Cloud On-Ramps: There are no public cloud on-ramps located within Ukraine as of September 2025. Businesses connect to hyperscale cloud providers like AWS, Google Cloud, and Azure via dedicated links to network hubs in Warsaw, Poland, or Frankfurt, Germany.

Internet Exchange Points (IXPs): The Ukrainian Internet Exchange (UA-IX) is the country's primary peering point. It plays a critical role in keeping domestic traffic within national borders, reducing latency and improving performance for local users.

Bare Metal: Bare metal server options are available from several local and regional providers. For deployments requiring a broader European footprint, providers like OVHcloud offer solutions from nearby data centers.

Power Analysis

Average Cost Of Power: Industrial electricity costs are estimated between UAH 4.50 and UAH 6.00/kWh as of September 2025. This rate reflects the current strain on the grid, which relies on a mix of nuclear (50-55%), fossil fuels, and hydroelectric power. The significant nuclear component provides a strong baseload capacity essential for continuous data center operations.

Power Grid Reliability: The Ukrainian power grid has demonstrated extraordinary resilience. Data centers in major cities like Kyiv are typically supported by redundant power feeds from multiple substations and are equipped with extensive on-site fuel storage for backup generators to ensure uptime during service interruptions.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in Kyiv, the capital and economic center, serving the dense ecosystem of government, finance, and technology companies. A secondary hub has emerged in Lviv, providing geographic diversity and serving the growing tech sector in western Ukraine.

Regional Market Reach: With a large domestic population, infrastructure in Ukraine is essential for serving local citizens and businesses with low latency. It also provides a strategic foothold for companies participating in the country's economic recovery and future growth.

Tax Advantage For Data Centers: Ukraine does not currently offer specific tax incentives for the development or operation of data centers. The focus of government and international financial support is on broader economic resilience and reconstruction, which can indirectly benefit critical infrastructure projects through financing and loan guarantees.

Natural Disaster Risk

Ukraine has a high overall risk profile, with an INFORM Risk score of 5.6 out of 10 as of September 2025. This rating is overwhelmingly driven by human factors related to conflict. The risk from natural hazards is considerably lower.

The primary natural hazards include:

  • River Flood: Poses the most significant natural threat in certain regions.
  • Coastal Flood: A material risk along the Black Sea coastline.
  • Drought: A moderate risk, primarily impacting the agricultural sector.
  • Earthquake: A low but present risk in the southwestern parts of the country.
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