Azerbaijan to Establish Private Data Center with Incentive Mechanisms

Baku: Azerbaijan is planning to develop incentive mechanisms to foster the creation of private data centers through public-private partnerships. This initiative is outlined in the ‘Strategy for the Development of the Digital Economy of the Republic of Azerbaijan for 2026-2029.’

According to Azeri-Press news agency, between 2026 and 2028, research will be undertaken to establish a private data center. The strategy includes the preparation of three incentive mechanisms designed to support the establishment of private data centers. At least two data centers are planned to be commissioned, reflecting a steady increase in investments in this sector.

Ultimately, the initiative is expected to result in the operation of more than two data centers that meet international standards in Azerbaijan.