Southern Russia Emerges as IT Growth Hotspot

The number of tech companies in southern Russia is rising fast, with regions like Krasnodar and Rostov building momentum toward full-scale IT clusters.

Russia is seeing a rapid increase in the number of IT companies, particularly in its southern regions. In Krasnodar Krai alone, the number of tech firms grew by 823 over the past year, reaching a total of 8,007—an 11.46% rise compared to July 2024, according to Vedomosti Yug citing data from Kontur.Focus.

The number of small and medium-sized enterprises (SMEs) in the region’s IT sector rose from 504 to 562 companies, a jump of 11.51%. Their share within the total number of organizations remained steady at 7.02%.

A similar trend is visible in the neighboring Rostov region, where IT company numbers climbed 6.26%—from 5,462 to 5,804. The SME segment there saw a 6.65% increase, growing from 331 to 353 businesses.

Experts say the rise of tech firms in southern Russia points to the emergence of a new regional IT cluster. The growth is attributed to favorable investment conditions, robust infrastructure, and a strong local talent pool.