Artificial Intelligence (AI) is the hottest topic in the tech industry right now. But we are paying less attention to the infrastructure on which AI’s knowledge base is running.

The more rapidly a country advances in technology, the more attention it has to pay to data storage and processing. And the most reliable physical infrastructure is a data center.

As a data centre equipment manufacturer, you have an open strategic opportunity: to venture into the most favourable countries and scale globally.

You want an import destination that delivers the best return on your investment. And the smartest step you can take is to identify a destination with less red tape, government support for foreign investors, and a high demand for imported data centre equipment.

However, determining the best import destination for your hardware can be a hurdle. And you may lack the time to conduct a feasibility analysis of essential factors such as market access, changing tax and duty rates, and the regulatory requirements.

Not to worry, Blackthorne IT did the heavy lifting for you. Drawing on our global expertise, we researched, analysed, and ranked the top five import destinations to consider for your next data center deployment.

These are countries you can easily access, transport, and install your equipment without breaking the bank, and meet all import requirements seamlessly.

Now, let’s head straight to our top five IOR-friendly countries.

Top 5 IOR-Friendly Countries to Consider for Data Centre Deployments [+ Why]

We ranked the IOR-friendly countries based on three critical factors: regulatory complexity, ease of market access, and reliance on data centre equipment imports.

Here are the top five most favourable import destinations for your data centre equipment and why you should consider them:

1. Australia

The Australian data centre market was valued at USD 4.22 billion in 2025. It is projected to reach USD 9.02 billion by 2031, growing at a 13.52% CAGR over the forecast period.

Various projects are accelerating the market growth, including the multi-year cloud migration project, which involves upgrading the IT infrastructure and moving outdated systems to the cloud.

The rapid adoption of AI and the expanding hyperscale cloud are also increasing demand for advanced compute devices, creating an opportunity for technology providers.

Here is a quick look at Australia’s data centre market analysis.

Image source: Australia Data Centre Market Analysis

But does Australia invite foreign investors to venture into this fastest-growing market?

Import Dependency

Machinery and electrical equipment are amongst Australia’s leading imports. In March 2026, the country experienced a 322% surge in imports of automatic data processing (ADP) equipment from Taiwan alone.

ADP equipment includes chips, servers, and compute infrastructure used in data centres. These were imported following increasing investment in data centre infrastructure and hyperscale computing capacity.

This sustained import dependency creates an opportunity for global manufacturers and suppliers of data centre infrastructure equipment.

Regulatory Requirements

The key regulatory requirements for importing data centre equipment into Australia include:

• Compliance with the Australian Border Force (ABF) customs regulations
• Compliance with the Australian Communications and Media Authority (ACMA) requirements for telecommunications and radio equipment
• Electrical safety compliance under the Electrical Equipment Safety System (EESS)
• Compliance with electromagnetic compatibility (EMC) requirements
• Accurate HS classifications and product valuation
• Complete, consistent, and accurate import documentation

Market Accessibility 

Let’s look at Australia’s duty rates, infrastructure, and how the government supports foreign investors:

Duties and Taxes

The country maintains a relatively predictable tax structure for technology equipment:

• 0%-5% duty rate for most imported IT equipment, depending on the HS classification
• A 10% Goods and Services Tax (GST) for all imported goods
• Preferential tariffs may apply under Australia’s Free Trade Agreements (FTAs)

Infrastructure

Australia’s infrastructure supports data centre equipment importation through:

• Port connectivity: Major ports such as Port Botany (Sydney), Port of Melbourne, and Port of Brisbane facilitate large-scale technology importation.
• Air freight capacity: Sydney Airport and Melbourne Airport support the fast delivery of equipment
• Fibre connectivity: Expanding subsea cable connectivity and domestic fibre infrastructure support hyperscale expansion

Government Support

Here are the various ways the Australian government supports foreign investors:

• R&D Tax Incentive: Provides up to 43.5% refundable tax offset for eligible technology and infrastructure development projects
• Major Project Status (MPS): Strategically significant projects facing regulatory complexities can obtain coordinated approvals and support.
• State investment facilitation: Agencies such as Investment NSW and Invest Victoria help with market entry, coordinated approvals, and site selection.

2. UAE

The UAE data centre market was valued at USD 1.48 billion in 2025. It’s projected to hit USD 3.86 billion in 2031, growing at a 17.33% CAGR through the forecast period.

The UAE is investing heavily in AI infrastructure, cloud services, and smart cities, which explains the rapid market growth. Dubai and Abu Dhabi are attracting hyperscale operators and colocation providers seeking to serve the MENA region.

Additionally, the government is establishing initiatives that encourage technology adoption and foreign investments.

Here’s a visual projection of the market growth between 2026 and 2031:

Image source: United Arab Emirates Data Centre Market Size and Share

But how favourable is the growing market for foreign investors?

Import Dependency 

The UAE has limited production of servers, networking equipment, and advanced server systems. And that explains why machinery and mechanical appliances, and electrical machinery and equipment are amongst the leading imports into the UAE.

The country sources most IT equipment from the United States, Taiwan, China, and European suppliers.

Regulatory Requirements

The key requirements for importing data centre equipment into the UAE include:

• Registering with the UAE customs as an importer
• Accurate classification of the tech products
• TDRA Type Approval for telecommunication equipment
• ESMA certification for electrical equipment
• Complete, accurate, and consistent import documentation

You can dive deeper into the detailed Telecom and ICT equipment import requirements in the UAE guide.

Market Accessibility 

Here are the various ways the UAE facilitates market entry for foreign importers:

Duties and Taxes

Import duties are relatively low, entailing:

• A standard 5% customs duty
• A 5% VAT on all imported goods
• Countries operating within designated free trade zones may benefit from duty exemptions, simplified customs procedures, and duty deferment.

Infrastructure

Various developments in the UAE support secure transportation and installation of data centre equipment:

• Port connectivity: Jebel Ali Port (the largest in the Middle East) connects the UAE to over 150 ports globally
• Air cargo infrastructure: Dubai International Airport and Al Maktoum International Airport facilitate the seamless movement of equipment
• Free zones: Technology-focused free zones such as Dubai Internet City, Abu Dhabi Global Market, and Dubai Silicon Oasis streamline customs, warehousing, and business setup operations

Government support

The UAE supports foreign investors in the following ways:

• 100% foreign ownership: You own your business fully without requiring a local sponsor
• Long-term residency initiatives: the Golden Visa Programme supports entrepreneurs, investors, and specialised technology professionals
• Streamlined trade policies: the government is simplifying licensing, investment procedures, and customs to attract more technology providers

3. United Kingdom (UK)

The UK data centre market size was priced at USD 16.30 billion in 2025. It is projected to reach USD 54.40 billion by 2031, growing at a 22.12% CAGR over the forecast period.

Here’s the market growth projection at a glance:

Image source: UK Data Centre Market Investment Analysis

The projected growth is over three times the current size. But what are the key drivers of the soaring growth?

Global and local data centre companies are establishing their operations in the UK due to a surge in:

• Liquid cooling techniques adoption 
• AI adoption 
• Digitalisation projects
• Submarine and inland connectivity 
• Demand for district heating systems
• Cloud computing services adoption 

Also, the UK government is accelerating AI infrastructure deployments across the country with financial incentives and funding ventures for data centre operators.

That already feels like the ideal destination for your data centre deployments.

But does the UK rely on imported equipment? And how easy is it to access the market, especially for foreign investors?

Import Dependency 

In 2025, electrical machinery, machinery, and equipment were among the leading imports into the UK. 

Amongst the imports is data centre equipment, whose spending is projected to increase up to ten times by 2030.

This creates an opportunity for overseas technology manufacturers to supply equipment into the UK, Europe’s fastest-growing AI and cloud markets.

Regulatory Requirements 

The key requirements for importing data centre equipment into the UK include:

• Compliance with the UKCA marking for electrical and electronic equipment 
• Adherence to electrical safety and electromagnetic compatibility (EMC) standards 
• Compliance with RoHS regulation for electronic equipment 
• Accurate customs declarations 
• Complete, accurate, and consistent documentation 

Market Accessibility 

A closer look into the duties and taxes, logistics infrastructure, and government support for foreign investors reveals:

Duties and taxes

Duties and taxes include:

• 0%-5% customs duty for most data centre equipment, according to the HS classification 
• A 20% VAT for all imported goods
• Preferential tariffs may apply to countries with existing free trade agreements with the UK

Infrastructure 

The UK’s infrastructure is well developed, entailing:

• Port connectivity: Major ports such as Felixstowe, Southampton, and London Gateway handle large-scale, containerised IT equipment shipments
• Air freight: Heathrow Airport is one of the most reliable air freight hubs in the UK, with secure handling facilities for high-value electronics 
• Digital infrastructure: Extensive fibre networks and subsea cable landing stations support London’s position as a global connectivity centre.

Government support 

The UK government supports foreign investors in various ways, including:

• Freeports Programme: Offers tax incentives, simplified customs procedures, and investment incentives in designated ports
• Department for Business and Trade (DBT) support: Assists foreign companies with market entry, meeting regulatory requirements, and expansion
• UK Research and Innovation (UKRI): Provides funding for technology development, advanced engineering innovation projects, and digital infrastructure 

4. Singapore

Singapore’s data centre market was estimated to be USD 4,275.05 million in 2025. The market is projected to hit USD 13,330.27 million by 2035, growing at a 11.96% CAGR throughout the forecast period.

But what drives such insane growth?

Singapore is experiencing growing demand for data, with enterprises embracing automation, AI, and energy-efficient solutions to meet it. Such demand plays a key role in market growth, creating an opportunity for investors in advanced technology.

Image source: Singapore Data Centre Market by Component

Import Dependency 

Singapore doesn’t manufacture servers, networking hardware, or cooling systems locally. However, it imports best-in-class equipment from global suppliers for deployment in world-class facilities.

Machinery and equipment, including data centre equipment, accounted for 43% of Singapore’s total imports as of March 2026. This reliance on imported technology creates an opportunity for foreign tech manufacturers to enter the rapidly growing market.

Regulatory Requirements

Singapore’s IT equipment import requirements and procedures are well structured and predictable:

• Telecommunications and networking equipment entering Singapore requires approval from the Infocomm Media Development Authority (IMDA) under the Telecommunications (Dealers) Regulations.
• Enterprise IT equipment within the 33 controlled goods categories under the Consumer Protection Safety Regulations (CPSR) requires suppliers to register the products under the Safety Mark Scheme.
• All goods destined for Singapore are subject to the Goods and Services Tax (GST) Act, the Customs Act, and the Regulation of Imports and Exports Act (RIEA).

Market Accessibility 

Singapore’s customs procedures, advanced logistics infrastructure, and government support for foreign investments simplify market access:

Duties and Taxes

Singapore’s free-port status offers a competitive value proposition:

• 0% customs duty on data centre equipment
• 9% GST applied on the import value
• No hidden fees or unpredictable tariff changes

Infrastructure

Singapore’s logistics infrastructure is world-class:

• Port connectivity: Singapore’s ports connect to 600+ ports globally. Phase 2 of the Tuas Port expansion (launched February 2026) adds automated deep-water berths and intelligent planning systems.
• Last-mile logistics: Maersk’s 1.1 million-square-foot automated distribution centre (opened March 2026) integrates seamlessly with Tuas Port and Changi Airport, ensuring rapid equipment delivery to data centres.
• Free Trade Zones: Bonded warehousing and zero-GST storage reduce importation costs and enable timely deployments.

Government Support 

Singapore’s government offers various incentives to support foreign investments:

• Data Centre-Call for Applications (DC-CFA2): Allocates at least 200 MW of new capacity to operators demonstrating sustainability, innovation, and economic contribution.
• Energy Efficiency Grant (EEG): Provides up to 70% co-funding (SMEs) or 30% (non-SMEs) for energy-efficient IT equipment, capped at S$30,000 per company. The grant extends to March 31, 2027.
• Operational efficiency: The Green Data Centre Roadmap balances data centre growth with energy efficiency and long-term sustainability, creating a consistent demand for next-generation, energy-efficient IT equipment.

5. Netherlands

The Netherlands data centre market was estimated at USD 11.25 billion in 2025. It’s projected to reach USD 18.96 billion by 2031, growing at a 9.1% CAGR over the forecast period.

The colocation segment alone is expanding at 17.5% annually, a pointer to a wide-open door for both local and foreign investors.

Here is a visual representation of the projected market:

Image source: Netherlands Data Centre Market Size Industry Report

Let’s look at the key drivers for the market growth:

The Netherlands is experiencing a surging demand for high-density cooling and electrical systems. This demand stems from rapid, large-scale expansions by Google, Microsoft, and Oracle.

The country is also commercially scaling the adoption of liquid and immersion cooling to maximise rack density and reduce floor space requirements within real-estate-confined regions like Amsterdam.

The goal is to increase GPU stability to accommodate rising rack density demand from research institutions and hyperscalers. Plus, the government is also creating more space in selected secondary cities for advanced AI training and tech developments.

But how favourable is this hyperscale-dominated market for SMEs and medium-sized foreign investors?

Let’s dive into the import dependency, regulatory requirements, and market accessibility.

Import Dependency

Electrical machinery and equipment, including data centre equipment, tops the list of the Netherlands’ imports.

The country imports the vast majority of servers, networking hardware, and other components from Taiwan, China, the United States, and Eastern Europe.

Essentially, hyperscalers cannot meet the rapidly increasing demand for data centre equipment. Instead, they create a competitive advantage as data centre operators source advanced technology from global manufacturers to meet the demand.

Also, the Netherlands serves as a distribution centre for the wider European Union market. That opens an additional opportunity for manufacturers seeking to use the country as a strategic entry point to Europe’s digital infrastructure.

Regulatory Requirements

Data centre equipment entering Europe must comply with Dutch and European regulations regarding:

• Safety
• telecommunication standards
• electromagnetic compatibility, and 
• environmental impact

The key IT equipment requirements and regulations in the Netherlands include:

• CE marking to demonstrate compliance with relevant EU directives and regulations
• Compliance with RoHS and WEEE requirements for electrical and electronic equipment
• Adherence to the Dutch customs administration requirements, such as accurate customs declarations, and complete and consistent documentation.

Meeting the regulatory requirements may be complex for new importers. However, once your equipment meets the EU standards, it gains unrestricted entry to the European Economic Area.

Market Accessibility

Here is an overview of how duty rates, logistics infrastructure, and the Netherlands’ government ease market entry for foreign investors:

Duties and Taxes

Imported data centre equipment is subject to import duties and VAT:

• The duty rate is determined by the customs classification codes under the EU common customs tariff (CCT).
• The standard VAT rate is 21%, applied to all imported goods
• Duty reductions or exceptions may apply to products originating from countries with EU Free Trade Agreements (FTAs)

Infrastructure

The Netherlands infrastructure is one of the most advanced in Europe, supporting high-value technology imports:

• Port connectivity: Rotterdam and Amsterdam handle over 507 million tonnes annually, serving as deep-sea gateways into Europe
• Digital freight platforms: secure chain and unified data exchange platforms that enhance supply chain visibility and security
• Last-mile delivery: Extensive road networks and proximity to major data centre hubs such as Amsterdam, Rotterdam, and Groningen facilitate rapid equipment deployment.

Government Support 

The Dutch government supports various investors in various ways:

• Netherlands Foreign Investment Agency (NFIA): Foreign companies focusing on Innovation, sustainability, and digitalisation can take advantage of the Invest in Holland 2025-2030 Strategy
• SDE++ subsidy: Can benefit data centre operators investing in renewable electricity, heat, and CO2-reducing technologies.
• Digitalisation and cybersecurity programmes: RVO programmes support data centre-related R&D and digital infrastructure projects.

The Top 5 Most Favorable Import Destinations at a Glance

We have done an in-depth feasibility analysis of the top five most favourable import destinations for your data centre equipment.

Generally, these are countries hand-picked because they’re easily accessible, rapidly growing, and favourable for foreign investors.

Here’s a summary report you can refer to when choosing a preferred destination, with the key advantage for each of the five destinations:

Notably, data centre equipment is subject to technical requirements, including licensing, certification, and approval from relevant departments in every destination. These procedures can be straightforward, yet complex to carry out.

Hence, you may consider a third-party importer of record specialising in IT equipment compliance, such as Blackthorne IOR, for a seamless customs clearance. 

That way, the IOR can use its accreditations and expertise to expedite the technical evaluation procedures.

How to Choose the Best Data Centre Import Destination for Your Business

Business needs vary. And the best import destination today may be the worst tomorrow due to economic shifts, regulatory changes, and uncertain circumstances such as wars and natural calamities.

Beyond the logistics infrastructure and market demand, here are the three key factors to consider when choosing an import destination for your equipment:

Local Production vs Demand

The demand may be high, but the country prioritises local manufacturers. In such cases, the government may limit unfair competition in three main ways:

• Increasing the import tax on foreign importers, which escalates your operational costs, lowering profit margins.
• Introducing complex regulatory requirements for imports, challenging market entry, and increasing the overall importation costs.
• Introducing import restrictions/quotas, limiting the quantity of goods you can bring into the country over a given period.

Hence, you must evaluate how your import destination supports foreign investments before settling with it as your destination.

Technical and Political Environment

Meeting the technical requirements for importing data centre equipment is non-negotiable. But you want to understand how structured and predictable those requirements are.

You don’t want to import your equipment today, only to have a list of procedures to fulfill next month. That points towards choosing a stable market over a growing one. 

While the developing market may be potentially more profitable, it can be costly to keep up with changing trade policies, compliance procedures, and long-term predictability.

Therefore, consider:

• Straightforward technical requirements
• Transparent compliance procedures
• Stable import regulations
• Predictable customs requirements
• Stable trade relations
• Access to reliable on-site technical personnel for equipment installation, maintenance, and repairs

Total Cost of Ownership (TCO)

The cost of your data centre equipment spans its entire operational cycle. A financial evaluation across these three areas would be essential:

• Upfront Capital Expenditure (CapEx): Calculate the landed cost of your equipment, including duties, VAT, processing fees for regulatory permits, and any other fees incurred during import.
• Ongoing Operation Expenditure (OpEx): Data centres are energy-intensive. Consider local utility tariffs, the availability of green energy, and grid reliability. 
  Also, cool, less humid regions demand less cooling, lowering your Power Usage Effectiveness (PUE) and long-term electricity bills.

• Supply Chain Resilience and Downtime: How quickly can you recover from hardware failure? Consider the cost of importing and storing critical spare parts locally. 
  Bureaucratic import procedures increase your Mean Time to Repair (MTTR), which can slow down operations and ruin your relationship with customers.

Scale Your Data Centre Equipment Supplies Internationally with an Expert IOR

There you have it. Five best destinations to choose from when scaling your data centre deployments, and an expert evaluation criteria of your next import destination.

Clearly, meeting the regulatory requirements for data centre equipment requires a dedicated compliance expert. This is because meeting the technical requirements, approvals, and certifications can be time-consuming and costly.

Additionally, depending on your country of origin, you may be unsure which destination best serves your business needs without setting up a local entity.

These are gaps Blackthorne IOR has been keen to fill in the following ways:

• Acting on your behalf: We have established local entities in over 200 destinations, so you don’t have to handle it. We can act on your behalf and get your equipment to your favorite destination.
• Guiding on import compliance: Unsure or spoilt for choice? Bring that to us. Get expert-led export licensing consultation for highly regulated import destinations so you can import confidently and compliantly.
• Financial planning for import transactions: Track import expenses via our IOR calculator to plan your finances and avoid hidden costs.
• Delivery to data centre: Share your inventory (all the equipment you want to ship), and we will get it to the data centre with minimal or no further involvement from your end.
• Technical support and maintenance: Afraid you don’t have a technical team in the destination country to care for your equipment? 

We have a technical team in the various import destinations where we are already established to offer equipment support and maintenance. Plus, we also do virtual IT support.

What else do you need?

We are invested in the secure and compliant movement of IT equipment across the globe at the lowest possible costs. 

Our line is active, so you can call at your convenience, or email us at sales@blackthorneit.com to start planning your next data centre deployments.