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Data Centers in Kyiv

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Kyiv – Resilient Digital Hub for Eastern Europe

Kyiv is a developing data center market defined by its strategic position in Eastern Europe. For companies requiring a digital presence to serve Ukraine and neighboring regions, Kyiv provides essential infrastructure, though it currently operates under significant geopolitical and risk considerations. The market is best suited for disaster recovery sites or for serving local application demand where data sovereignty and low-latency access are primary drivers.

Kyiv: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber connectivity links to major European hubs.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are in Warsaw and Frankfurt; private connectivity is available.
Power CostUAH 3.50-4.50/kWh (est.)Industrial rates are dynamic; grid relies heavily on nuclear power.
Disaster RiskHigh (5.6/10) – as of September 2025Elevated risk primarily due to non-natural, human-related factors.
Tax IncentivesNoNo specific data center tax incentives are currently offered.
Sales Tax20% VAT – as of September 2025A standard Value Added Tax applies to services.

Network & Connectivity Ecosystem

Kyiv's connectivity is resilient, with dense fiber routes connecting it to primary European internet hubs like Frankfurt, Amsterdam, and Warsaw.

Carrier Density & Carrier Neutrality: The market includes 29 data centers with at least 3 service providers, as of September 2025. While smaller than primary European markets, this provides sufficient options for redundancy and competitive pricing for local and regional connectivity.

Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps from major providers, as of September 2025. Businesses connect to cloud services via dedicated network links to hubs in Warsaw, Poland, or Frankfurt, Germany. Private network interconnects can extend cloud regions securely into local data centers.

Internet Exchange Points (IXPs): The Ukrainian Internet Exchange Network (UA-IX) is the dominant IXP in the country, with a major presence in Kyiv. It facilitates efficient local traffic exchange, reducing latency for Ukrainian end-users and lowering transit costs for providers.

Bare Metal: Bare metal server options are available in Kyiv, offering dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity offer services in the region, enabling businesses to deploy hardware without capital expenditure.

Power Analysis

Ukraine's power infrastructure has faced significant challenges but continues to operate with a focus on resilience.

Average Cost Of Power: Industrial power costs are estimated to be between UAH 3.50–4.50/kWh, as of September 2025. This pricing is subject to significant fluctuation based on grid stability and fuel costs. The country's energy mix is dominated by nuclear power (approximately 50-55%), with fossil fuels, hydro, and renewables making up the remainder.

Power Grid Reliability: The national power grid has been the target of external attacks, impacting reliability. However, data center operators in Kyiv typically deploy extensive backup systems, including multi-day fuel reserves for generators and multiple UPS systems, to ensure uptime for critical infrastructure.

Market Access, Business & Tax Climate

Kyiv serves as the undisputed economic and logistical center of Ukraine, making it the primary location for digital infrastructure.

Proximity To Key Business Districts: Data centers in Kyiv are situated to serve the city's central business districts, government institutions, and technology parks. This proximity provides low-latency connectivity essential for financial services, media, and enterprise operations.

Regional Market Reach: A deployment in Kyiv offers direct access to Ukraine's large population of internet users. It also acts as a strategic gateway for companies looking to serve markets in neighboring Eastern European countries.

Tax Advantage For Data Centers: The current tax framework does not provide specific incentives for data center construction or operation. Businesses should plan for a standard corporate tax environment and the 20% Value Added Tax on services.

Natural Disaster Risk

Kyiv has a high overall risk profile, according to the INFORM Risk Index, with a score of 5.6 out of 10, as of September 2025. This rating is overwhelmingly influenced by human factors, specifically projected and current conflict.

The primary natural hazards for the region include:

  • River Flood: Rated 6.2/10, indicating a significant risk from the Dnieper River and its tributaries.
  • Coastal Flood: Rated 5/10, though as an inland city, this reflects a broader national risk and is not a direct threat to Kyiv itself.
  • Drought: Rated 2.4/10.
  • Earthquake: Rated 2/10.

Tropical cyclones and tsunamis present a negligible risk to this inland location.

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