Data Centers in Kremenchuk
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Kremenchuk – Strategic Hub for Resilient Infrastructure
Kremenchuk, and Ukraine more broadly, presents a complex but strategic market for specific IT deployments. It is best suited for organizations requiring geographic diversification within Eastern Europe, supporting in-country data processing, or establishing a disaster recovery site. The market's value lies in its access to a skilled workforce and its position as a critical industrial center, demanding resilient and localized digital infrastructure.
Kremenchuk: At A Glance
Factor | Rating / Data | Notes |
---|---|---|
Global Connectivity Grade | B | Reliable national connectivity with developing international links. |
Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private extension to hubs like Warsaw or Frankfurt. |
Power Cost | ₴5.00 – ₴7.00/kWh (est.) | Dominated by nuclear power, offering a stable generation base. |
Disaster Risk | Moderate (5.6/10) | Dominated by flood risk; seismic and other natural hazards are low. |
Tax Incentives | No | No specific tax incentives for data center development exist. |
Sales Tax | 20% VAT | Standard rate applied to goods and services as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, carrier density in Kremenchuk is developing. Access to major national telecom providers is available, but the market lacks the dense, carrier-neutral ecosystem found in primary European hubs. The single data center provides access to a focused group of providers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps from providers like AWS, Google Cloud, or Azure within Kremenchuk as of September 2025. Secure, private connections to cloud regions must be established via long-haul circuits to major European hubs such as Warsaw or Frankfurt.
Internet Exchange Points (IXPs): The primary internet exchange for Ukraine is UA-IX, located in Kyiv. Peering in Kremenchuk is typically managed through private connections or routed through the national capital, which centralizes traffic exchange for the country.
Bare Metal: Bare metal server availability is present, primarily through regional providers. For global provider options, deployments are often managed from nearby European data centers, with providers like OVHcloud offering services in the broader region.
Power Analysis
Average Cost Of Power: The estimated cost for industrial power ranges from ₴5.00 – ₴7.00/kWh as of September 2025. Ukraine's power generation is heavily reliant on nuclear energy (approximately 50–55%), which provides a consistent and powerful baseload for the national grid. This strong nuclear foundation helps stabilize grid frequency and supply.
Power Grid Reliability: The national power grid is extensive but has faced significant challenges. In major industrial areas like Kremenchuk, infrastructure is built to support heavy manufacturing, though redundancy may not meet the standards of primary international data center markets.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Kremenchuk are positioned to serve the heavy industry, manufacturing, and engineering sectors that form the city's economic core. Proximity to these operations is critical for low-latency process control and data analysis.
Regional Market Reach: Kremenchuk provides effective digital service delivery to the industrial heartland of central Ukraine. It is a viable secondary site for businesses with a primary presence in Kyiv, offering a location for disaster recovery and business continuity operations.
Tax Advantage For Data Centers: Ukraine currently offers no specific tax incentives tailored to data center construction or operation. The corporate tax environment is standard, without the credits or exemptions seen in other markets actively pursuing digital infrastructure investment.
Natural Disaster Risk
Ukraine has a moderate overall disaster risk profile, with an INFORM Risk score of 5.6 out of 10 as of September 2025. The risk landscape is not dominated by severe weather or seismic activity, but by specific, localized hazards.
Key natural hazards include:
- River Flood: The most significant natural risk (6.2/10), primarily related to the Dnieper River.
- Coastal Flood: A moderate risk factor (5.0/10) for the country's southern border, though not a direct threat to the inland location of Kremenchuk.
- Drought: A minor but present risk (2.4/10) that can impact agriculture and water resources.
- Earthquake: A low-level risk (2.0/10), as the country is not located near major fault lines.