Launch of a Natural-Gas-Powered Data Center in Yakutia: A New Paradigm for Russia’s IT Infrastructure

From Mining to Full-Scale Data Centers

In the Vilyuysky District of Yakutia, Russia’s first data center powered directly by natural gas has entered its pilot phase. The project, initiated by the Yakut Fuel and Energy Company (YATEK), represents a strategic shift from raw resource export to creating digital value within the region.

Aysen Nikolaev, Head of the Republic of Sakha (Yakutia), called the initiative “the right approach,” emphasizing that gas is now converted on-site into energy powering high-performance computing capacity—a new, technology-driven product. Earlier, Nikolaev promoted the idea of developing large mining farms using regional resources.

Despite the region’s harsh climate, its frigid environment creates a competitive advantage: natural cooling dramatically reduces operating costs, minimizing the need for heavy air-conditioning systems for much of the year.

This step is part of a broader trend emerging across Russia. Major energy companies are beginning to recognize the potential of digital infrastructure. Almost simultaneously with Yakutia’s announcement, Gazprom signed an agreement to deploy data centers at its industrial facilities, signaling a unified state and corporate strategy.

“Experts say that before long, the structure and map of the global economy will change dramatically. The decisive factor will be whether a developed country has large-scale data centers—facilities that consume tremendous amounts of energy. Even if you have the technology to build and operate such centers, without the necessary energy, you remain on the margins of history.”

Alexei Miller

Chairman of Gazprom’s Management Committee

A Practical, Not Experimental, Approach

The pilot launch is only the first stage. Over the next one to two years, YATEK’s project is expected to enter full commercial operation, offering data hosting and potentially cloud services for regional and national clients. The initiative could create new jobs, strengthen the Far East’s digital backbone, and lower server service costs for local businesses.

In the medium and long term, Yakutia may become a model for resource-rich and northern regions of Russia. Building a network of such hubs would enhance the country’s technological sovereignty, reducing reliance on foreign data centers and ensuring secure data storage within national jurisdiction.

A more ambitious scenario envisions export potential. Russia could offer not just energy resources but complete technological solutions—natural-gas-powered data centers—to nations with similar geographies, including Arctic states and countries with large reserves of associated petroleum gas.

From Concept to Implementation

The synergy between energy and IT is not new in Russia. In 2017, En+ Group launched the “Clouds of Siberia” data center at the Novo-Irkutsk CHPP, capitalizing on low-cost electricity. In 2021, BitRiver demonstrated the efficiency of placing high-performance computing facilities in Siberia, where inexpensive hydroelectric power is abundant.

However, YATEK’s initiative elevates the concept to a new level, focusing specifically on natural gas in extreme Arctic conditions. It turns a traditional resource into the foundation of modern digital infrastructure. The project supports Russia’s broader strategy of import substitution and technological sovereignty, establishing a full value chain: gas extraction → power generation → IT infrastructure → cloud services.

From Resource Economy to Digital Economy

The launch of a gas-powered data center in Yakutia is far more than a local event. It signals a transformation in economic strategy, where digital infrastructure becomes a new avenue for monetizing traditional energy assets. This project demonstrates how a resource-based economy can evolve into a digital one, generating added value and supporting Russia’s technological ambitions in the Arctic and northern regions.