Armenia bets on AI mega-hub to power tech leap

The construction of a large data center in Hrazdan, Armenia, marks the country’s significant shift from small-scale outsourcing to substantial investments in artificial intelligence (AI) technology.
The project, developed by San Francisco-based Firebird AI, is seen as a strategic move to forge closer ties with the West and reduce reliance on Russia, carrying geopolitical weight.
The US plays a pivotal role in supporting the project by facilitating access to advanced US chips like the Nvidia Blackwell graphics processing units, aiming to enhance its influence in the region.
The total investment in the 125-megawatt data center is anticipated to reach up to $4 billion, more than 10 percent of Armenia’s annual GDP, making it the largest technological investment in the country.
Most of the data center’s capacity is expected to be leased to foreign clients, primarily US firms, with a portion reserved for domestic use, potentially increasing the technological capability of local industries.
The project faces challenges including delays in chip delivery, potential future energy supply concerns, and a shortage of local AI experts, despite hopes that it will stimulate a tech and education ecosystem.
Some students are optimistic the project will offer new learning opportunities but doubts remain about reversing the outflow of young professionals.