Data Centers in Khmelnytskyi
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Khmelnytskyi – Strategic Digital Hub in Western Ukraine
Executive Summary
Khmelnytskyi is an emerging data center market in Western Ukraine, offering a strategic location for disaster recovery and secondary infrastructure for businesses operating in Kyiv. Its position provides a balance of regional access and operational resilience away from primary conflict zones. This market is best suited for organizations prioritizing geographic diversity and business continuity within Ukraine.
Khmelnytskyi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, with international routes primarily through larger hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access points are in Warsaw or via private extension to Kyiv. |
| Power Cost | UAH 4.00–6.00/kWh | Estimated industrial rates, as of September 2025. Costs reflect current grid conditions. |
| Disaster Risk | High (5.6/10) | Elevated risk profile driven primarily by human factors and specific natural hazards. |
| Tax Incentives | No | Ukraine does not currently offer specific tax incentives for data center development. |
| Sales Tax | 20% VAT | Standard Value Added Tax rate applies to equipment and services, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market has a developing carrier presence, with fewer than 10 regional and national providers available as of September 2025. Most colocation facilities offer access to key Ukrainian telecom operators, though carrier neutrality is limited compared to Kyiv.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Khmelnytskyi. Businesses require private network extensions or IP transit to connect to cloud provider networks in major European hubs like Warsaw or Frankfurt. This setup ensures secure, dedicated access for latency-sensitive workloads.
Internet Exchange Points (IXPs): Public peering is not established in Khmelnytskyi. Traffic exchange is managed through private peering arrangements or routed through the Ukrainian Internet Exchange Network (UA-IX) located in Kyiv.
Bare Metal: Bare metal server options are available, typically through providers with a broad European footprint. Services from providers like OVHcloud and Leaseweb can be deployed to serve the region, offering dedicated compute resources.
Power Analysis
Average Cost Of Power: Industrial power costs are estimated to be between UAH 4.00 and UAH 6.00 per kWh as of September 2025. This pricing is influenced by the national energy situation, making stable power budgeting a key operational consideration. Ukraine's energy mix is dominated by nuclear (approximately 50–55%) and fossil fuels (35–40%).
Power Grid Reliability: The power grid in western Ukraine is generally more stable than in other regions but remains subject to national-level strain. Data centers in the area are engineered with significant redundancy, including multi-megawatt generator and UPS systems, to guarantee uptime during utility disruptions.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Khmelnytskyi's data centers serve the growing commercial and industrial base of Western Ukraine. The city's strategic location along key transit routes makes it a logical point for regional content delivery and logistics support.
Regional Market Reach: The market effectively serves as a disaster recovery and secondary site for companies headquartered in Kyiv, roughly 300 kilometers to the east. It also provides low-latency access for end-users across the western part of the country.
Tax Advantage For Data Centers: Ukraine does not provide specific tax credits or financial incentives for data center construction or operation. The business case for deploying in Khmelnytskyi is based on strategic location and operational continuity, not tax benefits.
Natural Disaster Risk
Khmelnytskyi has a high overall risk profile, with an INFORM Risk score of 5.6 out of 10 as of September 2025. While human-related risks are the primary driver of this score, several natural hazards are relevant.
The most significant natural risks for this inland region include:
- River Flood: The highest natural hazard score (6.2/10), affecting areas near the Southern Bug river.
- Coastal Flood: Rated at 5/10 nationally, this risk is not directly applicable to inland Khmelnytskyi.
- Drought: A moderate risk (2.4/10) that can impact agriculture and water resources.
- Earthquake: A low but present risk (2.0/10).
