Armenia could emerge as a regional hub for artificial intelligence development through cooperation with Nvidia and the launch of a major data center in Hrazdan.

The data center, which opened last month, is expected to become the largest computing cluster in the region and one of the largest in Europe, according to Bloomberg.

Its capacity is projected to reach 300 megawatts by the end of 2027, with more than 70,000 advanced Nvidia AI chips expected to be installed.

Around 20% of the computing capacity has been reserved for domestic use, including research, government projects and Firebird’s (a startup founded by entrepreneurs of Armenian origin) own ecosystem. The remaining capacity will be available to international companies, including US-based Perplexity AI.

Bloomberg describes Nvidia’s involvement in the project as one of the more prominent examples of what it characterizes as the Trump administration’s “AI diplomacy.” The data center played a role in efforts surrounding the peace agreement between Armenia and Azerbaijan.

Armenia began cooperating with Nvidia in 2019, following Prime Minister Nikol Pashinyan’s visit to the company’s headquarters in Santa Clara.

Nvidia expanded its presence in Armenia from 2022, when engineers were relocated from its Moscow office to Yerevan. In 2023, Nvidia CEO Jensen Huang visited Armenia, helping lay the groundwork for the creation of Firebird.

Firebird acquired twice as many Nvidia processors as the US had authorized for export to Saudi Arabia’s Humain following months of negotiations between Washington and Riyadh.