Siberia to become one of the biggest hubs for Russia’s data centers and AI industry
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Source: Bne IntelliNews |
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A few facts about data centers |
Data centers are facilities that house thousands of computer servers. They are used to store, process, and transmit data. Economies rely on these centers to support a wide range of activities. These include: |
Cloud computing
Financial transactions
Government services
Websites
AI
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Data centers have become strategic facilities. They play a key role in crucial economic and government activities. But they are also part of national security. Their role has grown even further with the rise of AI. These centers then hold a strategic importance for Russia. |
Russian data centers |
Russia’s data centers industry is increasingly crucial to its digital sovereignty and AI goals. It aims to build eight new mega centers. Its current facilities can mostly be found in the western part of the state. About 85% of Russia’s data centers are clustered around Moscow and St Petersburg. They sit close to businesses, customers, and key telecommunications networks. But these centers create pressure on power supplies. Siberia then emerges as a key alternative to the western hubs. |
Indeed, Russia has been shifting its effort to the East. Siberia and Far East Russia now account for more than 15% of the state’s data center footprint. These regions’ footprint is growing faster than any other Russian federal district. |
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Why Siberia is strategic for data centers development? |
Siberia offers opportunities to support the development of new data centers with a combination of: |
Energy resources
Climate conditions
Strategic location
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Power resources. Large data centers demand a lot of energy to power their operations. In the West, Russia struggles to secure enough power to expand its capacity. But Siberia generates roughly one-fifth of Russia’s power. It holds huge surplus. There is a concentration of hydroelectric infrastructures there. The regions of Irkutsk and Krasnoyarsk are well-equipped. Russia already uses these regions for crypto mining. |
Cold climate. Data centers concentrate thousands of servers. They all function at the same time. This creates heat and the need to cool the installations. Large quantities of water are usually required to do that. But low outdoor temperatures can enable to use free cooling systems. External cold air is used to remove heat from servers. This reduces the need for energy used to cool the servers. This energy can be used to power them instead. Siberia’s sub-zero climate provides this free natural cooling eight to nine months out of the year. This greatly lowers the power usage effectiveness and operational costs. |
Secure the centers from Ukraine’s drones. There has been attacks by Ukraine on data centers in Russia. This raised worries about the resilience of cloud platforms and AI development. If the facilities were in Siberia, it would reduce the cluster around Western Russia. It would make them less accessible to Ukraine’s strikes. |
Close to China. Russia and China have been deepening their relations. Due to sanctions, Russia needs China’s support. In return, it can provide ideal conditions for the development of data centers. China has emerged as the primary customer for Siberian computing power. |
Challenges |
High investment costs. Building these centers requires upfront investments. This summer, it was reported that Russia had suspended 38 data center projects over the past three years. They were worth over 2.26 billion USD. High borrowing costs and power constraints were among the reasons. |
Resources. Siberia holds lots of them. But hydropower output is not unlimited. It can vary with water availability. Interfax said there could be power deficits in Siberia. This could be the case under low-water conditions. More data center demand would worsen the outlook. |
Access to advanced chips. Data centers for AI require specialized processors. Sanctions have made it hard for Russian companies to access these. They are turning to China for supplies. But the Chinese option does not necessarily match the performance of the most advanced U.S. processors. Plus, it creates another dependence. Russia is trading one vulnerability for another. This could limit Russia’s autonomy rather than reinforce it. |
Security. The distance from Ukraine will reduce the risk of drone attacks. But it does guarantee a full protection. Cyberattacks, sabotages or other forms of disruptions can still occur. |
Decoding geopolitics isn’t a job. It’s survival. |
Joy |
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