Based on the memorandum signed on August 8 in Washington, Firebird AI has announced the construction of an artificial intelligence data center in Armenia. The practical phase of the project is set to begin very soon, the Minister of High-Tech Industry, Mkhitar Ayrapetyan, stated while summarizing 2025.
Firebird AI Project: $500 Million to $4 Billion in Investments
Ayrapetyan recalled that Firebird AI initially announced an investment of up to $500 million. However, during project implementation, it became clear that the company has the capacity to significantly expand the scale of its operations.
He noted that during a visit to Armenia by U.S. Vice President J.D. Vance, it was announced that the company had applied to implement the second phase of the project. If launched, total investment could reach up to $4 billion.
Construction and Launch Timeline: From Permits to Practical Implementation
The company has already acquired a plot of land, and procedures for construction permits, community approvals, and environmental impact assessments are currently underway. According to the minister, preparatory construction work has either already started or is nearing completion.
Firebird AI has officially stated that the first batch of graphics processors and server equipment will be delivered within the next two months and immediately installed. This means the practical phase of the project will begin very soon.
“Initially, the company announced plans to start providing services by the second half of the year, which implies a tight and accelerated timeline,” the minister said.
Licenses and Contracts: NVIDIA and Dell Already Involved
Regarding the legal and contractual aspects of the project, the minister emphasized that all export permits and licenses required for both phases have already been issued. Firebird AI has active contracts with NVIDIA, the owner of the relevant graphics processors, with the right to sell them.
The company is also working with Dell, which handles server production, GPU integration, and delivery of ready-made server systems. No additional contracts are needed at this stage — the equipment will be imported into Armenia, after which the data center will begin operations.
What This “Plant” Really Is: Cloud AI Resources, Not Chips
The minister stressed that this project does not involve manufacturing microchips, semiconductors, or physical components. The “plant” refers to a facility producing cloud-based AI services.
Fully assembled servers and GPUs will be imported into Armenia, where they will generate ultra-powerful computational resources — AI cloud and supercomputing capacities — which will be made available online to potential users worldwide.
Jobs and Data Center Logic: The Focus Is Not on Headcount
To clarify the project’s nature, the minister highlighted that the key metric is not the number of jobs. Depending on the company’s strategic decisions, the facility may employ several dozen up to 200 people, not thousands.
This is because the computational systems themselves will perform the bulk of the work. Human staff will primarily handle security, monitoring, and technical support, while supercomputing clusters and thousands of servers will carry the main workload.
Priority for Armenia: Resources for Digital Transformation
The minister noted that during early discussions with Firebird AI’s founders, it was agreed that part of the data center’s computational capacity would be allocated for Armenia’s domestic needs.
Digital transformation is a strategic national priority, involving the automation of dozens or even hundreds of public services and the integration of AI solutions into public administration. This requires critical new resources — ultra-powerful computing power — alongside electricity and internet.
For the first time, the Armenian government will rely not only on renting foreign data center resources but also on the capacity of a center built and operating on its own territory.
Science, Innovation, and 100% Subsidized Computational Resources
The project is intended not only for government needs but also for science, technological development, and innovation. The minister recalled the creation of a virtual AI institute and collaborations with Amazon Web Services and Firebird AI.
In the future, computational resources produced by the data center will be made available to the scientific, research, and tech communities. Under state programs, these resources will be fully subsidized, as they represent extremely costly capacities.
According to current regulations, groups of five individuals, teams of up to 100, companies, and students will be able to access these resources. The first phase of the program has already been completed, with numerous applications submitted. After evaluation, computing power will be provided free of charge.
Economic Impact and Tax Revenues
The minister also highlighted the fiscal impact of the project. Implementation of the investment program, potentially reaching $4 billion, will generate significant tax revenues for the state budget.
Ayrapetyan noted that he deliberately refrains from disclosing specific corporate tax figures, suggesting that interested parties calculate the effect themselves using AI tools. He described the total impact as “impressive,” with revenues directed to education, science, social programs, road construction, and security.
Armenia Among Global Leaders in AI Computing
Concluding his remarks, the minister stated that the project will position Armenia among the world’s leading countries in terms of access to ultra-powerful AI computational resources.
This opens doors for international tech companies and turns the country into an exporter of computational resources through cloud services, establishing Armenia as a significant global player in artificial intelligence and securing a strategic role in the emerging global technological landscape.
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