Russia Data Center Construction Market

Russia Data Center Construction Market Analysis

The Russia Data Center Construction Market size is estimated at USD 4.46 billion in 2025, and is expected to reach USD 9.21 billion by 2031, at a CAGR of 12.86% during the forecast period (2025-2031).

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Russian data center construction market is expected to reach more than 1800 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 4.3 million sq. ft by 2030.
• Planned Racks: The country's total number of racks to be installed is expected to reach more than 216.6K units by 2030. Moscow is expected to house the maximum number of racks by 2030.
• Planned Submarine Cables: There are ten submarine cable systems connecting Russia to the rest of the world. One such submarine cable that was built in 2022 is Petropavlovsk-Kamchatsky - Anadyr, which stretches over 2,173 kilometers with landing points in Anadyr, Russia, Petropavlovsk-Kamchatsky, Russia, and Ugolnye Kopi, Russia.

Russia Data Center Construction Market Trends

Tier 3 Contributing Significant Market Share while Tier 4 Showcase Growth

• In 2023, tier 3 was positioned to secure a significant market share, propelled by a notable uptick in tier 3 certifications across various facilities. Russia, boasting over 15 tier 3 data centers, is also witnessing the construction of several more. Concurrently, tier 4 is primed for accelerated growth in the near future.
• Moscow is home to the largest concentration of tier-3 data centers in Russia. Notable players in this space include Rostelecom, 3Data, MTS PJSC (MTS Group), Selectel Ltd, DataPro, RackStore, IXELERATE LLC, Yandex Cloud LLC, and Rosenergoatom, among others.
• SMEs increasingly opt for tier 3-rated data systems, attracted by their robust redundancy features. This shift predominantly stems from the heightened emphasis on data security. Furthermore, the uptick in smartphone adoption, focus on premium digital content, a surge in visually immersive online gaming, and a notable transition of consumers toward online shopping and digital transactions collectively fuel the expansion of tier 3 data centers across the country.
• There is a gradual decline in demand for tier 1 and 2 facilities, a trend likely to persist due to frequent and prolonged outages. Consequently, users are increasingly favoring tier 3 and 4 facilities, driven by the rising need for robust data storage, processing, and analysis capabilities.
• With an increasing number of businesses offering cloud-based services, the demand for tier 4 data centers is set to surge in the upcoming years. Consequently, numerous data center providers are ramping up construction efforts to offer cutting-edge colocation spaces.

IT and Telecom to Have Significant Market Share

• Within the Russian economy, the IT sector stands out as a strategic segment, outpacing the overall GDP growth rate, a trend projected to persist in the coming years.
• Russia's market is witnessing a surge in cloud adoption, propelled by advancements in technologies such as artificial intelligence, Big Data, and blockchain. Moreover, as Russia pivots toward a digital ruble and actively participates in cryptocurrency mining and trading, the demand for robust data center infrastructure is poised to escalate.
• Technoparks in Russia, such as Skolkovo, IstraDigital, and Mordovia Republic’s Technopark, are pivotal in driving growth and innovation in the country's data center sector, providing a host of advantages to potential investors.
• The surging 4G adoption, escalating broadband speeds, and the imminent 5G revolution are compelling telecom vendors to bolster their investments in the data center sphere. In December 2023, Russia announced plans to roll out 5G networks in its major cities by 2026. Moreover, the government pledged approximately USD 38.61 million to aid operators in transitioning to these advanced 5G networks.
• In January 2023, Russian telecom operators signed forward contracts with local manufacturers of communication network base stations totaling over RUB 100 billion (USD 1.1 billion). The contracts entail the delivery of approximately 75,000 base stations by 2030, with a mandate for operators to procure solely from domestic sources starting in 2028. This move underscores the growing demand for data processing, prompting the imperative for new data centers and expansions.

Russia Data Center Construction Industry Overview

The Russian data center construction market features key players like Arup and Astron Buildings SA, among others, leading to a slightly fragmented landscape. Notably, major data center corporations are intensifying their investments in Russia, with a primary focus on expansion and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.

For instance, in April 2023, 3Data unveiled plans to construct 35 data centers across Russia's primary regions in the next five years. These data centers, ranging from 400 to 1200 racks, are slated for cities like Vladivostok, Novosibirsk, Yekaterinburg, Nizhny Novgorod, and Stavropol. The company also intends to establish data centers with capacities between 30 and 400 racks in another 30 Russian cities.

Russia Data Center Construction Market Leaders

Russia Data Center Construction Market News

• September 2023: VEB.RF announced plans to back upcoming projects that focus on constructing data processing centers, with a key emphasis on utilizing Russian-made equipment.
• May 2023: Wildberries, a Russian e-commerce giant, unveiled its inaugural data center in the Moscow region. Covering an expansive 16,000 square meters, the center boasts a robust capacity of 3.5 MW.