Belgrade Data Center Market Report

Overview: A Digital Infrastructure Gateway to the Balkans

Belgrade, the capital of Serbia, is emerging as a regional data center hub for the Balkans and Southeast Europe, driven by growing digitalization, international investment, and improving connectivity. While it does not yet rival established Western European markets, its strategic position, affordable energy, and rising demand for cloud and colocation services make it an attractive destination for data center expansion.

Market Supply and Demand Trends

Key Investment and Development Activity

• Belgrade is witnessing increased investment in colocation and cloud services, with both domestic and international players entering the market.
• Telekom Srbija is expanding its data center operations, focusing on enterprise customers and cloud solutions.
• The Government of Serbia has actively promoted digital transformation, leading to higher demand for local colocation and edge computing services.
• International hyperscalers (AWS, Microsoft Azure, Google Cloud) have not yet established direct hyperscale facilities, but regional cloud service providers are growing in response to enterprise demand.

Colocation and Hyperscale Expansion Potential

• Several colocation providers (Mainstream, BeotelNet, and Orion Telekom) are expanding services, targeting financial services, gaming, and enterprise customers.
• Growing AI and machine learning workloads in the region may drive future AI inferencing data center investments.

Connectivity: Subsea Cables, Fiber Infrastructure, and Internet Exchange

Subsea & Terrestrial Fiber Infrastructure

While Serbia is a landlocked country, Belgrade benefits from strong fiber connectivity to key European hubs, providing low-latency access to regional markets.

Key Terrestrial Fiber Routes Serving Belgrade:

• Frankfurt-Vienna-Belgrade fiber corridor – Provides direct low-latency access to major European internet hubs.
• Balkan fiber backbone – Connecting Serbia to Hungary, Romania, Bulgaria, and Greece.
• Serbia’s national fiber optic network – Managed by Telekom Srbija, expanding to support 5G and enterprise cloud services.

Internet Exchange (IX) Points

Key Internet Exchanges in Belgrade:

• SOX (Serbian Open Exchange) – The largest neutral IX in Serbia, serving domestic and regional peering.
• BIX.BG (Balkan Internet Exchange – Bulgaria) – Providing additional regional peering for Serbian networks.

Belgrade’s growing IX presence makes it an important location for regional data routing and edge computing.

Power & Energy Considerations

Electricity Prices & Grid Considerations

• ~€0.08-€0.10 per kWh – Lower than Western European markets, making Belgrade attractive for energy-intensive workloads.
• Energy mix: 40% hydroelectric, 35% coal, 25% renewables – Serbia is expanding its renewable energy investments.
• Grid reliability improving, with EU-backed investments in power infrastructure and smart grids.

Serbia’s relatively low energy costs and stable electricity supply enhance Belgrade’s appeal as a data center location.

Investment Climate & Regulatory Environment

Recent Transactions & Investment Trends

• Telekom Srbija launched its latest Tier III data center, serving government, enterprise, and cloud workloads.
• AWS and Microsoft have increased their cloud services footprint in Serbia, though no hyperscale data center announcements have been made.
• Mainstream, a Serbian cloud and colocation provider, is expanding its facilities to meet increasing demand for enterprise cloud services.
• International investors are exploring Belgrade as a Balkan data hub, given its growing economy and regional influence.

Why Investors Are Interested in Belgrade:

• Strategic location in the Balkans with strong connectivity to Vienna, Budapest, and Sofia.
• Low energy and operational costs compared to Western Europe.
• Expanding demand for cloud and colocation services.

Regulatory Considerations

 Legal & Compliance Factors:

• Serbia is not an EU member, but it aligns many of its digital regulations with EU standards.
• GDPR-like data protection laws apply to companies handling EU customer data.
• Government incentives for IT and digital infrastructure projects.

Market Challenges & Constraints

🔴 Challenges for Data Center Operators in Belgrade:

• Limited presence of hyperscale cloud providers – Most hyperscalers serve Serbia from Frankfurt or Vienna.
• Internet exchange presence is still developing, limiting local peering efficiency.
• Energy transition is ongoing, with coal still playing a role in Serbia’s power mix.

Despite these challenges, Belgrade’s data center market is poised for growth.

Conclusion: Belgrade’s Position in the European Data Center Landscape

Belgrade is emerging as a regional data center hub, driven by strong fiber connectivity, low energy costs, and growing enterprise cloud adoption.

• Strategic connectivity to key Balkan and EU markets
• Expanding colocation and cloud service providers
• Competitive power and real estate costs
• Government-backed digital transformation initiatives

While hyperscaler presence is still limited, Belgrade is increasingly attractive for edge computing and regional colocation expansion.

‍