Data Centers in Khmelnytskyi
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Khmelnytskyi – Strategic Hub in Western Ukraine
Executive Summary
Khmelnytskyi is an emerging digital infrastructure location in Western Ukraine, best suited for organizations requiring a strategic foothold for serving regional populations and creating geographic redundancy within the country. While direct cloud access is limited, the market provides a cost-effective alternative to larger hubs, enabling resilient service delivery for Ukrainian end-users. Its position is critical for disaster recovery and content delivery strategies focused on the western part of the country.
Khmelnytskyi: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, but limited direct international and cloud access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extensions to major hubs like Kyiv or Warsaw. |
| Power Cost | 3.50–4.50 UAH/kWh (est.) | Industrial power costs are competitive, benefiting from a high nuclear power share. |
| Disaster Risk | High (5.6/10) – as of September 2025 | Overall risk is elevated by human factors; natural hazard risk is moderate. |
| Tax Incentives | No | No specific tax incentives for data center construction or operation are available. |
| Sales Tax | 20% VAT – as of September 2025 | A standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
The network environment in Khmelnytskyi is developing, serving regional needs effectively while relying on larger national hubs for broader connectivity.
Carrier Density & Carrier Neutrality: Carrier presence is primarily focused on national providers, with an estimated 5–10 carriers available in the primary facility as of September 2025. The market is moving towards greater carrier neutrality, though options are fewer than in the capital.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Khmelnytskyi as of September 2025. Businesses connect to cloud providers by extending their networks through private connectivity (PNI or wave) to major European hubs like Warsaw or Frankfurt, or nationally via Kyiv.
Internet Exchange Points (IXPs): Public internet exchange points are limited within the city. Most peering is conducted privately or routed through the Ukrainian Internet Exchange (UA-IX) in Kyiv to ensure efficient traffic exchange across the country.
Bare Metal: Bare metal server availability is present through regional providers. Options from global providers like OVHcloud can serve the region from nearby European data centers, offering a path for deploying dedicated compute resources.
Power Analysis
Ukraine's power infrastructure relies heavily on nuclear energy, which provides a stable baseload, though regional grid reliability can vary.
Average Cost Of Power: The estimated industrial power cost is between 3.50–4.50 UAH/kWh as of September 2025. This competitive pricing can significantly lower operational expenditures for compute-intensive workloads compared to other European markets.
Power Grid Reliability: The national power grid features a high percentage of nuclear generation (over 50%), contributing to baseline stability. However, infrastructure reliability remains a key consideration, and data centers in the region require robust UPS and generator backup systems to guarantee uptime.
Market Access, Business & Tax Climate
Khmelnytskyi serves as an important commercial and logistical center in Western Ukraine, offering strategic access to both domestic and nearby European markets.
Proximity To Key Business Districts: Data centers in the area are positioned to serve the city's market economy, which includes trade, light industry, and agriculture. Proximity to major transportation routes is a key advantage for logistical and distribution-focused businesses.
Regional Market Reach: The city provides effective low-latency access to a population of several million across Western Ukraine. Its location also makes it a viable point of presence for services extending towards Poland, Moldova, and Romania.
Tax Advantage For Data Centers: Ukraine does not currently offer specific tax incentives or credits for the development or operation of data centers. Businesses should plan for standard corporate and value-added tax rates on all investments and operations.
Natural Disaster Risk
The overall risk profile for Khmelnytskyi is High (5.6/10) as of September 2025, a score heavily influenced by human and geopolitical factors. The risk from natural hazards alone is moderate.
Key natural hazards for the region include:
- River Flood: The most significant natural risk, with a score of 6.2/10.
- Coastal Flood: Rated at 5/10 on a national level, but not a direct risk to the inland location.
- Epidemic: A moderate risk factor at 3.8/10.
- Drought: A minor risk, with a score of 2.4/10.
Earthquake, tsunami, and tropical cyclone risks are negligible for this location.
