Data Centers in Kremenchuk
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Kremenchuk – Digital Infrastructure for an Industrial Hub
Executive Summary
Kremenchuk serves as a niche data center market for organizations requiring low-latency connectivity to the industrial and logistical core of central Ukraine. This location is best suited for workloads that must remain in-country and proximate to heavy industry operations. Deploying here is a strategic choice focused on operational resilience within a challenging but vital economic region.
Kremenchuk: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects national backbone connectivity; local performance can vary. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to Kyiv or major European hubs like Warsaw. |
| Power Cost | UAH 3.00–5.50/kWh | Industrial power costs are volatile; nuclear generation provides a significant baseload. |
| Disaster Risk | High (5.6/10) – as of September 2025 | Overall risk is driven primarily by human factors; natural risk is moderate. |
| Tax Incentives | No | No specific tax incentives are available for data center development or operation. |
| Sales Tax | 20% VAT – as of September 2025 | A standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market provides access to a focused group of national and regional carriers, with an estimated 10+ providers available through local facilities as of September 2025. Carrier neutrality is available, though options are fewer than in the capital.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Kremenchuk. Establishing a secure, private connection to providers like AWS, Google Cloud, or Microsoft Azure requires backhauling traffic to Kyiv or extending networks to primary European cloud regions in Warsaw and Frankfurt.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Interconnection is typically handled privately or routed through the Ukrainian Internet Exchange (UA-IX) in Kyiv to achieve efficient traffic exchange.
Bare Metal: Bare metal server options are available, primarily through providers with a broad Eastern European footprint. Services from companies like OVHcloud can provide dedicated infrastructure in the region.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated to be between UAH 3.00 and UAH 5.50/kWh as of September 2025. The national grid benefits from a substantial nuclear power base, which accounts for over 50% of generation, supplemented by fossil fuels and hydroelectric power. However, pricing remains subject to significant volatility, impacting operational expenditure forecasts.
Power Grid Reliability: The national power grid faces considerable strain. Data center operations in Kremenchuk demand fully redundant power systems, including on-site substations, multi-megawatt UPS arrays, and extensive diesel generator fuel reserves to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Kremenchuk are positioned to support the city's heavy industrial base, including machine building, oil refining, and manufacturing. Proximity enables low-latency process control and data processing for these critical local industries.
Regional Market Reach: The market effectively serves the Poltava Oblast and the broader central Ukraine region. Its location on the Dnieper River makes it a key logistical point, allowing digital infrastructure to support regional supply chains.
Tax Advantage For Data Centers: Ukraine does not currently offer specific tax relief or financial incentives for data center investment. The standard corporate tax structure applies, creating a straightforward but unsubsidized environment for operators.
Natural Disaster Risk
Kremenchuk has a high overall risk profile, with a score of 5.6 out of 10 as of September 2025. While this rating is heavily influenced by human and conflict-related factors, the primary natural hazards must be considered for infrastructure planning.
The most significant environmental threats include:
- River Flood: Poses the highest natural risk due to the city's location on the Dnieper Reservoir.
- Drought: A moderate but recurring risk for the region.
- Earthquake: Seismic activity is a low but present risk.
