TBC Capital published a report, "Data Centers Market in Georgia". According to the document, Global data center infrastructure remains highly concentrated, with the United States accounting for approximately 37% of all facilities worldwide (4,204 out of 11,296 as of April 2026). At the same time, the industry is undergoing a structural shift toward AI-driven, compute-intensive infrastructure, reshaping demand patterns and investment scale. Global data center capacity has expanded rapidly from 60 GW in 2020 to 97 GW in 2024 (by 62%) and is projected to reach 226 GW by 2030 (around 2.3x increase), with growth concentrated in the United States and China. This expansion is mirrored by rising electricity consumption, which increased from 269 TWh to 416 TWh (by 55%) over the same period and is expected to approach 946 TWh by 2030 (more than doubling from 2024 levels).
Importantly, electricity demand is growing at a pace that increasingly defines the limits of capacity expansion. While installed capacity is expected to grow by around 2.3x between 2024 and 2030, electricity consumption is projected to grow at a similar or slightly faster pace, reflecting increasing power density per unit of capacity. The rise of AI workloads, in particular, is driving higher energy intensity, as advanced computing requires more power and cooling per rack.
Georgia’s data center market remains at an early, pre-scale stage, characterized by a small number of facilities, limited publicly available technical specifications, and a strong reliance on international cloud providers. Only a few operators are publicly listed, and technical details, such as installed capacity, redundancy standards, and energy efficiency, are largely undisclosed. There are no confirmed Tier III or Tier IV operational certifications, and although some facilities meet design-level standards.
While the ICT sector has expanded rapidly, growing from GEL 1.3bn in 2019 to GEL 7.4bn in 2025 and increasing its share in GDP from 3% to 8%, this growth has not yet translated into significant domestic data center demand. Enterprise-level digital adoption remains uneven: while basic connectivity is widespread, the use of advanced technologies such as AI, IoT, and Big Data remains limited, constraining immediate demand for high-performance infrastructure. As a result, a significant share of data generated in Georgia continues to be stored and processed externally, with enterprises relying on international cloud providers (e.g., AWS, Microsoft Azure, Google Cloud), and no hyperscale or AI infrastructure currently present.
From an infrastructure perspective, Georgia presents a mixed readiness profile. While the electricity system is relatively stable and largely hydropower-based, seasonal variability in generation creates constraints on reliable, year-round supply, particularly for large, continuous loads such as data centers. This is compounded by limited availability of uninterrupted baseload capacity, growing balancing market pressures, and insufficient redundancy in international fiber connectivity, all of which constrain hyperscale and AI-intensive development in the near term.
Regionally, Armenia is emerging as an AI compute hub, with large-scale investments in GPU-based infrastructure and strong policy alignment supporting cloud and AI development. This shift introduces a new dynamic in the South Caucasus.
Overall, Georgia is at a strategic inflection point. While current capacity and demand remain limited, improving connectivity and regional dynamics create a foundation for growth. Unlocking this potential will require the timely investment, improved energy and connectivity infrastructure, and a more targeted policy framework, enabling Georgia to transition from a connectivity-focused ecosystem toward a more integrated role in the regional digital infrastructure landscape.
