Market Size of russia data center Industry
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 0.85 Thousand MW |
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Market Volume (2029) | 1.52 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 12.32 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Russia Data Center Market Analysis
The Russia Data Center Market size is estimated at 0.85 thousand MW in 2024, and is expected to reach 1.52 thousand MW by 2029, growing at a CAGR of 12.32%. Further, the market is expected to generate colocation revenue of USD 1,761.9 Million in 2024 and is projected to reach USD 1,974.7 Million by 2029, growing at a CAGR of 2.31% during the forecast period (2024-2029).
USD 1,761.93 Million
Market Size in 2024
USD 1,974.7 Million
Market Size in 2029
20.1%
CAGR (2017-2023)
2.3%
CAGR (2024-2029)
IT Load Capacity
848 MW
Value, IT Load Capacity, 2024
Data adoption in smart city projects such as video monitoring program and investment by companies such as linxdatacenter and ixcellerate leads to boost the market demand.
Total Raised Floor Space
Sq. Ft. 2.42 M
Volume, Raised Floor Space, 2024
Businesses in Russia increasingly utilize modern technology to streamline their daily operations. By 2025, most companies plan to introduce cloud infrastructure into their business processes.
Installed Racks
121,145
Volume, Installed Racks, 2024
Moscow is expected to house the maximum number of racks by 2029. IXcellerate with Moscow Five (MOS5) campus on 34 acres in Moscow with up to 200 MW planned with a design capacity of around 20,000 rack spaces.
# of DC Operators & DC Facilities
31 and 103
Volume, DC Facilities, 2024
In 2024, there were 99 colocation DC facilities in Russia. Majorly, factors that contribute to the growth of the DC facilities in the country include cloud adoption, an increase in broadband connectivity, and smartphone penetration.
Leading Market Player
18.7%
Market Share, Rostelecom, 2023
Rostelecom was the leading player in the Russian market in the historical period, with 19 facilities and 128.3 MW in operation. It is expected to roll out five data centers with a capacity of 56 MW during the forecast period.
Tier 3 data center accounted for majority share in terms of volume in 2023, and tier 4 is expected to dominate through out the forecasted period
- The tier 3 segment in Russia reached an IT load capacity of 459.63 MW in 2022. They are projected to register a CAGR of 5.63%, surpassing 700.98 MW by 2029. The tier 4 segment is projected to register a CAGR of 32.83% to reach an IT load capacity of 782.78 MW by 2029.
- Tier 1 & 2 facilities are gradually losing their demand, which may continue in the coming years. Tier 1 & 2 facilities are expected to hold a market share of nearly 2.3% by 2029. This minimal growth is likely to be a result of prolonged and inconsistent outages. Most users will eventually switch to tier 3 and 4 facilities, which currently hold 55.6% and 42.1% of the market, respectively, due to the increased demand for storing, processing, and analyzing data.
- The e-commerce and BFSI segments are expanding. In recent years, Russia has seen a rise in the use of online and mobile banking. For instance, the volume of online sales of physical goods in Russia grew 1.5-fold Y-o-Y in the first half of 2022 to 2.2 trillion. In 2020, domestic Russian online sales of physical items reached USD 37 billion, an increase of 58% from 2019.
- Tier 4 data centers are projected to grow significantly in the coming years as more businesses are providing cloud-based services. Therefore, many data center providers are constructing facilities to provide colocation spaces with the best technology.
- The Russian invasion of Ukraine in 2022 boosted the prices of cloud services significantly as major Western manufacturers stopped supplying IT equipment to the Russian market due to logistical issues and the increased value of the Dollar and Euro.
Russia Data Center Industry Segmentation
Moscow are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- The tier 3 segment in Russia reached an IT load capacity of 459.63 MW in 2022. They are projected to register a CAGR of 5.63%, surpassing 700.98 MW by 2029. The tier 4 segment is projected to register a CAGR of 32.83% to reach an IT load capacity of 782.78 MW by 2029.
- Tier 1 & 2 facilities are gradually losing their demand, which may continue in the coming years. Tier 1 & 2 facilities are expected to hold a market share of nearly 2.3% by 2029. This minimal growth is likely to be a result of prolonged and inconsistent outages. Most users will eventually switch to tier 3 and 4 facilities, which currently hold 55.6% and 42.1% of the market, respectively, due to the increased demand for storing, processing, and analyzing data.
- The e-commerce and BFSI segments are expanding. In recent years, Russia has seen a rise in the use of online and mobile banking. For instance, the volume of online sales of physical goods in Russia grew 1.5-fold Y-o-Y in the first half of 2022 to 2.2 trillion. In 2020, domestic Russian online sales of physical items reached USD 37 billion, an increase of 58% from 2019.
- Tier 4 data centers are projected to grow significantly in the coming years as more businesses are providing cloud-based services. Therefore, many data center providers are constructing facilities to provide colocation spaces with the best technology.
- The Russian invasion of Ukraine in 2022 boosted the prices of cloud services significantly as major Western manufacturers stopped supplying IT equipment to the Russian market due to logistical issues and the increased value of the Dollar and Euro.
| Hotspot | |
| Moscow | |
| Rest of Russia |
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
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Russia Data Center Market Size Summary
The Russia Data Center Market is experiencing significant growth, driven by the increasing demand for data storage, processing, and analysis. The market is characterized by a shift towards higher-tier facilities, particularly tier 3 and tier 4 data centers, which are gaining prominence due to their advanced capabilities. This transition is fueled by the expanding e-commerce and BFSI sectors, which have seen a surge in online and mobile banking activities. The geopolitical landscape, particularly the Russian invasion of Ukraine, has also impacted the market by affecting the supply chain and increasing the cost of cloud services. As a result, data center providers are investing in state-of-the-art facilities to meet the growing demand for colocation spaces.
The market is moderately consolidated, with major players like IXELERATE LLC, MTS PJSC, Rostelecom, Selectel Ltd, and Yandex.Cloud LLC holding significant shares. Recent developments include the opening of DataPro Moscow II, the first tier-IV data center in Eastern Europe, and plans by Yandex to construct a new data center in Kaluga Oblast. These initiatives reflect the ongoing efforts to enhance data center infrastructure in Russia. The rise in fixed broadband speeds and the increasing adoption of fiber optic connections are expected to further drive the growth of data processing facilities, supporting the market's expansion in the coming years.
Russia Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 Moscow
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1.1.2 Rest of Russia
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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Russia Data Center Market Size FAQs
What is the current Russia Data Center Market size?
The Russia Data Center Market is projected to register a CAGR of 12.32% during the forecast period (2024-2029).
Who are the key players in Russia Data Center Market?
IXELERATE LLC, MTS PJSC (MTS Group), Rostelecom, Selectel Ltd and Yandex.Cloud LLC are the major companies operating in the Russia Data Center Market.
