Bloomberg: Nvidia chips fuel Armenia’s bid to become regional AI hub

Armenia is positioning itself as an emerging hub for artificial intelligence infrastructure, with a major data center under development that could place the small South Caucasus nation at the center of a rapidly expanding regional technology market, Bloomberg reports.

In August, San Francisco-based startup Firebird began operations at a data center in Hrazdan, around 45 kilometers from Yerevan. The facility is expected to reach 300 megawatts of capacity and host more than 70,000 advanced Nvidia chips by the end of next year. Around one-fifth of its computing capacity is reserved for domestic research, government and startups, while the remainder will serve international companies, including US-based Perplexity AI.

Firebird says the complex is on track to become the largest computing cluster in the region and rank among Europe’s largest. Its development also has broader geopolitical implications as Armenia seeks to deepen ties with the West while reducing its dependence on Russia.

Armenia’s access to Nvidia chips reportedly became part of US-brokered negotiations aimed at advancing a peace agreement with neighboring Azerbaijan after decades of conflict. The agreement, which has yet to be signed, includes plans for the Trump Route for International Peace and Prosperity (TRIPP), a proposed transport corridor across Armenia linking Azerbaijan with Nakhchivan.

“TRIPP aims to "strengthen the prosperity and security of Armenia and Azerbaijan and expand US commercial opportunities by expanding regional trade and connectivity, as well as create new transit links from Central Asia and the Caspian to Europe," a State Department spokesperson said.

Armenia’s engagement with Nvidia dates back to 2019, when Prime Minister Nikol Pashinyan visited the company’s headquarters in California. Nvidia established a presence in Armenia in 2022, and CEO Jensen Huang visited the country the following year.

The country’s technology ambitions have also faced scrutiny over concerns about potential diversion of Western technology to Russia. Yerevan subsequently tightened restrictions on electronics exports to Russia and sought US licenses for advanced AI chips.

Firebird CEO Razmig Hovaghimian said the company’s plans had received strong backing from both governments, adding: “Peace and regional stability create the conditions for investment, innovation, growth and global partnerships to thrive.”

Vice President JD Vance described the advanced chips being deployed in Armenia during a February visit to Yerevan as technology that “simply do not exist in most countries.”

By Vafa Guliyeva