Data Centers in Kremenchuk
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Kremenchuk – Industrial Hub for Central Ukraine
Kremenchuk serves as a secondary IT and industrial hub in central Ukraine. For businesses requiring proximity to the region's manufacturing, transport, and agricultural sectors, local infrastructure provides essential connectivity, though it relies on primary hubs like Kyiv for direct cloud access and international peering. This market is best suited for applications where latency to the local industrial base is critical.
Kremenchuk: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional connectivity, but lacks direct international gateways. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to primary hubs like Kyiv or Warsaw. |
| Power Cost | UAH 2.50-3.50/kWh (est.) | Nuclear and fossil fuels dominate the grid; pricing reflects national averages. |
| Disaster Risk | High (5.6/10) – as of September 2025 | Primary risks are man-made; natural hazards like flooding are moderate. |
| Tax Incentives | No | No specific incentives for data center development exist as of September 2025. |
| Sales Tax | 20% VAT – as of September 2025 | The standard Value Added Tax applies to IT services and equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a regional center, Kremenchuk is served by national Ukrainian telecom operators. The market provides foundational connectivity but lacks the carrier density of a primary hub. Carrier-neutral facilities are limited, with most connectivity managed through national providers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Kremenchuk as of September 2025. Businesses require private network links or IP transit to connect to cloud provider points of presence in major European hubs like Warsaw, Poland, or Frankfurt, Germany.
Internet Exchange Points (IXPs): Public peering is not established locally. Companies in Kremenchuk typically route traffic through national IXPs in larger cities like the UA-IX in Kyiv to achieve efficient traffic exchange within Ukraine.
Bare Metal: Bare metal server options are available through national providers offering services from data centers located in Ukraine's primary markets. Availability from global providers like Hivelocity or Leaseweb would typically be sourced from facilities in nearby European countries.
Power Analysis
Average Cost Of Power: The estimated industrial electricity cost in Kremenchuk ranges from UAH 2.50–3.50/kWh as of September 2025. This pricing is influenced by Ukraine's energy mix, where nuclear power provides a significant baseload, supplemented by fossil fuels. Stable power costs are a key operational factor, though subject to national grid stability.
Power Grid Reliability: The national power grid faces significant challenges. While infrastructure in key industrial areas is engineered for reliability, the overall system is vulnerable to disruption. Data centers operating here require extensive on-site power redundancy, including UPS systems and diesel generators, to ensure uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data center infrastructure in Kremenchuk supports the city's heavy industry, including automotive manufacturing, engineering, and oil refining. Proximity enables low-latency connectivity for industrial control systems, logistics, and corporate operations central to the Poltava Oblast.
Regional Market Reach: The city serves as a digital access point for central Ukraine, covering a significant industrial and agricultural corridor along the Dnieper River. It provides a strategic location for reaching regional end-users and businesses outside the primary metropolitan areas of Kyiv or Lviv.
Tax Advantage For Data Centers: Ukraine currently offers no specific tax incentives for the construction or operation of data centers. The standard corporate and value-added tax rates apply, making the financial climate dependent on broader economic policies rather than targeted IT sector benefits.
Natural Disaster Risk
Kremenchuk has a high overall risk profile, rated 5.6 out of 10, primarily driven by human-related hazards as of September 2025. Natural disaster risks are present but secondary to man-made and institutional factors.
Key natural hazards include:
- River Flood: With a score of 6.2, flooding from the Dnieper River is the most significant natural threat.
- Coastal Flood: Rated at 5.0, this reflects regional risk related to the country's Black Sea coast, though indirect for the inland city of Kremenchuk.
- Drought: The region has a moderate drought risk, scored at 2.4.
- Earthquake: Seismic risk is low, with a score of 2.0.
