Data Centers in Dnipropetrovsk
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Dnipropetrovsk – Industrial Hub for Eastern Europe
Dnipropetrovsk serves as a strategic digital infrastructure location for enterprises targeting Ukraine's industrial heartland and eastern markets. For businesses requiring resilient operations within the country, the city provides essential connectivity, although it relies on other national hubs for direct cloud access.
Dnipropetrovsk: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity, but limited international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to hubs like Warsaw or Frankfurt. |
| Power Cost | UAH 5.00-6.50/kWh | Nuclear power dominates the grid, offering relatively stable generation. |
| Disaster Risk | High (5.6/10) | Elevated risk primarily from human factors; natural hazard risk is moderate. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | 20% VAT | Standard Value Added Tax rate applies to services, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Dnipropetrovsk supports a solid domestic network environment with connectivity from over 5 national and regional carriers as of September 2025. While carrier diversity is not as extensive as in Kyiv, the market provides sufficient options for redundant and reliable network builds.
Direct Cloud On-Ramps: The market has 0 direct cloud on-ramps and 0 cloud regions locally available as of September 2025. Accessing major cloud providers like AWS, Google Cloud, or Microsoft Azure requires establishing a private network connection to major European hubs such as Warsaw or Frankfurt.
Internet Exchange Points (IXPs): While Kyiv is the primary hub for internet peering in Ukraine with the UA-IX, local traffic exchange in Dnipropetrovsk is handled through private peering arrangements. This setup ensures efficient data transfer within the region.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute resources for workloads that demand high performance and security. Providers like Hivelocity offer solutions that can be deployed in nearby European data centers with optimized network routes into Ukraine.
Power Analysis
Average Cost Of Power: Industrial electricity prices are estimated to be between UAH 5.00–6.50/kWh as of September 2025. The country's reliance on nuclear power, which accounts for over 50% of the energy mix, helps stabilize generation costs for high-consumption facilities.
Power Grid Reliability: The power grid, particularly in major industrial areas, is engineered for significant loads. However, reliability is impacted by ongoing geopolitical factors, making on-site redundant power systems, including UPS and generators, a critical requirement for any data center deployment.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Dnipropetrovsk are positioned to serve the city's heavy industry, manufacturing, and technology sectors. This proximity allows for low-latency connections essential for industrial automation and enterprise resource planning systems.
Regional Market Reach: Dnipropetrovsk is a key economic hub for central and eastern Ukraine, offering a strategic point of presence to serve millions of people and businesses in the surrounding territories. Its location is advantageous for logistics, distribution, and industrial operations.
Tax Advantage For Data Centers: Ukraine currently offers no special tax incentives for data center construction or operation. The standard 20% VAT applies to equipment and services, placing the financial focus on operational efficiency rather than government subsidies.
Natural Disaster Risk
Dnipropetrovsk has a high overall risk profile, driven primarily by non-natural factors. As of September 2025, the INFORM Risk Index score is 5.6 out of 10.
The primary natural hazards affecting the region are moderate and include:
- River Flood: Score of 6.2
- Coastal Flood: Score of 5.0 (related to river systems and reservoirs)
- Drought: Score of 2.4
- Earthquake: Score of 2.0
