Battle for Megawatts: Rostelecom’s New Data Center Set to Reshape the Energy Landscape of the IT Industry
The data center market is set to become one of the fastest-growing segments globally and in Russia over the coming years. Rostelecom has announced plans to build a new facility with investment estimated at around 100 billion rubles.
Rostelecom plans to build a new data center with a power capacity of 100 MW. Company president Mikhail Oseevsky announced the project at the Data Fusion forum. Total investment is estimated at 100 billion rubles (about $1.1 billion). The company’s previous facility cost 40 billion rubles (about $440 million), including server equipment, and has a capacity of 40 MW.
The location of the new facility has not yet been finalized. Specialists are evaluating potential sites, though it is unlikely to be in the Moscow region, where power capacity is constrained. The project’s payback period is estimated at five to seven years, assuming Rostelecom remains the primary user.
The project highlights the readiness of Russian companies to commit large-scale capital to digital infrastructure. That investment strengthens national digital sovereignty while improving access to digital services for both businesses and citizens.
Digital Growth as an Energy Driver
In the coming years, Russia’s data center market is expected to expand rapidly, driven by rising demand for computing capacity. This growth will not only support the IT sector but also increase pressure on the energy industry.
Total connected capacity of Russian data centers has already reached 4.5 GW and is expected to grow by at least 2.5 GW by 2030. On one hand, this will push energy companies to invest in new generation capacity. On the other, building power infrastructure typically takes longer than constructing data centers.
One potential solution is to locate data centers not only in regions with surplus capacity but also in remote areas near local generation sources. In such locations, supplying power to large-scale facilities is less constrained. Similar initiatives are already emerging. Yakutskaya toplivno-energeticheskaya kompaniya (Yakut Fuel and Energy Company) has announced plans to build data centers near gas fields.
From Moscow to Udomlya: Market Evolution
The new Rostelecom project marks another phase in the company’s expansion of computing capacity. In 2019, Rostelecom launched the first phase of the Kalininskiy data center near the Kalinin Nuclear Power Plant in the city of Udomlya. By summer 2025, the third phase of the facility had been commissioned at a cost of 2 billion rubles (about $22 million).
Meanwhile, in May 2025, the first and second phases of Rostelecom’s data center in Nizhny Novgorod were brought online. The broader market includes major operators such as IXcellerate, Atomdata (Rosatom), DataPro and Selectel. Together, they control 74% of the national data center market.
Rising Demand for Compute and Energy
Overall, developments in Russia align with global trends. Growth is driven not only by expanding computing capacity but also by increasing electricity demand, positioning the IT sector as a driver for power generation markets.
Between 2026 and 2028, the shift toward building large-scale data centers outside major metropolitan areas is expected to accelerate. Available capacity in Moscow and St. Petersburg is nearly exhausted. Rostelecom’s ongoing site selection process reflects these constraints.
Relocating data centers to regional areas also supports broader economic development. Large operators bring not only investment but also drive the expansion of supporting infrastructure.
With the potential to build facilities in regions with very low electricity costs, Russian operators may also target international markets in partner countries, offering access to computing capacity. In this context, Rostelecom’s project represents more than a single facility. It contributes to the foundation of national digital independence.
