Increase in data center services in the capital region ranges from 13% to 17%
In a significant move, the Russian Central Bank recently reduced the key interest rate by 2 percentage points, marking a cautious easing after years of high rates aimed at curbing inflation. Despite the cut, rates remain elevated, but this move indicates a possible longer-term trend of rate decreases.
This reduction is expected to have a limited but potentially positive impact on data center construction outside Moscow and St. Petersburg. While interest rates remain high overall, the gradual easing signals some improvement in financing conditions, which could encourage investment in data center infrastructure beyond the traditional hubs.
The Russian data center market has experienced a boom in construction demand starting in 2023, driven by deferred demand and broader digital infrastructure needs. Most data centers are currently concentrated in Moscow (about 76% of racks), but there is also a rising number of large-scale projects underway elsewhere.
The reduced interest rate may gradually alleviate funding constraints for investors and developers, especially as high rates had been cited as a factor limiting economic growth and investment. However, the full impact on lending and construction may be slow given the still high rates and cautious central bank stance.
Due to the high concentration of data centers in Moscow and St. Petersburg, new capacities are scarce. In St. Petersburg and Leningrad Oblast, the volume of free rack space remains minimal. In Moscow, data centers are approximately 95% full, with no more than 1,400 racks available for rent.
The scarcity of new capacities in Moscow and St. Petersburg has led to increased interest in facilities in other regions of the country. Prices for colocation services in St. Petersburg and Leningrad Oblast increased by 10.9% in the first quarter of 2025, while prices for colocation services in Moscow and the surrounding area grew by 31.4% in the same period.
The rental price for data centers in Moscow and Moscow Oblast in the second quarter of 2025 was 147,500 rubles, an increase of 13% year-over-year. In St. Petersburg and Leningrad Oblast, the rental price was 104,300 rubles, an increase of 17% year-over-year.
The implementation of previously announced projects to introduce new capacities in St. Petersburg and Leningrad Oblast has been on hold due to high key interest rates. However, with the recent rate cut, these projects may be reactivated, supporting the steady growth and diversification of data center development into other Russian regions over 2025-2026.
Experts expect that a decrease in the key interest rate will have a positive impact on data center construction. The Central Bank reduced the key interest rate to 18% per annum on July 25, 2025. This reduction, combined with strong underlying demand and government regulatory clarity, could encourage more institutional investment in data center infrastructure outside major cities, fostering a more distributed and resilient digital infrastructure landscape in Russia.
[1] Central Bank of Russia. (2025). Monetary Policy Decision. Retrieved from https://www.cbr.ru/reference/keyrate/ [2] Reuters. (2025). Russia's Central Bank Cuts Key Rate by 2 Percentage Points to 18%. Retrieved from https://www.reuters.com/business/russias-central-bank-cuts-key-rate-2-percentage-points-18-2025-07-25/ [3] Data Center Dynamics. (2025). Russian Data Center Market Booms Amid Digital Infrastructure Needs. Retrieved from https://www.datacenterdynamics.com/content-hub/russian-data-center-market-booms-amid-digital-infrastructure-needs [4] Financial Times. (2025). High Interest Rates Limiting Economic Growth in Russia. Retrieved from https://www.ft.com/content/e69d4452-f084-4f29-b3a9-37b4495f2f1e [5] Kommersant. (2025). Russian Government to Regulate and Monitor Cryptocurrency Mining Data Centers. Retrieved from https://www.kommersant.ru/doc/4633050
This article is for informational purposes only and does not constitute professional advice. Always do your own research or consult with a professional before making financial decisions.
- The recent reduction in the key interest rate by the Central Bank of Russia could potentially encourage more institutional investment in data center infrastructure outside major cities, fostering a more distributed and resilient digital infrastructure landscape in Russia.
- With the gradual easing of financing conditions due to the lower interest rates, the implementation of previously announced projects to introduce new data center capacities in regions beyond Moscow and St. Petersburg may be reactivated, supporting the steady growth and diversification of data center development.
