The Armenian government has approved plans to build a new data center.

Competitive bids for the project, which is expected to cost more than US$10 million, should be submitted by August 2018.

Public-private partnership

Mount Ararat and the Yerevan skyline
Mount Ararat and the Yerevan skyline – Wikimedia Commons/Serouj Ourishian

“Now we are discussing the possibilities of investing in the center with several private companies,” Minister of Transport, Communication and Information Technologies, Vahan Martirosyan, said.

“According to preliminary calculations, the minimum required amount is $10 million. The government on its part will provide the premises and infrastructure, and the rest will be handled by a private investor.”

Armenian publication Arka Telecom reports that Martirosyan added that the data center is expected to ensure significant economic benefits and additional revenues for the government, and improve the nation’s IT capabilities.

Earlier this month, Deputy Minister of Economic Development and Investments Garegin Melkonyan announced that the government had given permission to Welbeck-AM to spend US$2m on a data center in the Alliance free economic zone.

“The company plans to build a data center within two years by introducing server and network equipment that will serve foreign companies,” Melkonyan said.

Armenia has two free economic zones - Alliance, for high tech and IT industries, and Meridian, for the jewelry industry.