VSData is planning a new data center outside Yerevan, Armenia.

The company this week announced plans for a 2MW, 125-rack facility outside the capital city.

Ground has been broken, and the data center is due to go live by the end of 2025. This is seemingly the company’s first facility, from which it aims to offer colocation and other services.

The Tier III quality project will include two independent power lines and a cooling system based on spring water.

Located in a gorge in Aragatsotn, the facility will be connected to Yerevan with a 25km fiber optic line. The company said the gorge is 5°C (41°F) cooler than the surrounding area, helping to reduce cooling costs.

“The demand for data centers is growing due to increasing digitization, from the Internet of Things to AI. As a result, energy consumption by data centers has also significantly risen. That's why we decided to build a data center using green technologies to reduce electricity consumption and contribute to a more sustainable future,” said Vladimir Shamirian, founder and CEO of VSData.

VSData said it is expanding its pool of investors and is inviting professionals with technical expertise to become partners in the data center project.

Rostelecom-owned Armenian telco Ovio, Datacom Company, and Arminco operate data centers in the capital, Yerevan.