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Data centers and the war economy

What are data centers, and why is Ukraine striking them?

PublishedDmytro Kogan

Military technology, artificial intelligence, industry and the financial system all need computing power. Data centers supply it through thousands of servers. Strikes on these facilities in Russia put pressure on its technological development and economy. Banks, businesses and ordinary users also feel the effects.

In October 2026, Ukrainian long-range strikes reached data centers belonging to Yandex and Sberbank, as well as infrastructure serving VKontakte. The attacks drew attention to a part of Russia’s economy rarely discussed alongside factories, ports and fuel depots.

Yet manufacturing, finance and the development of modern technology increasingly depend on servers staying online. Losing computing capacity has consequences well beyond a phone app that stops working.

What is a data center? A simple explanation

A data center is a purpose-equipped facility that houses servers, stores information and provides computing power.

A company can host its applications and databases there or rent capacity to run them. Some data centers serve thousands of customers. Others are built for specific tasks, such as training artificial intelligence models.

The familiar “cloud” also runs on physical equipment. Files, corporate systems and digital services are stored and processed on servers that require continuous power, connectivity, cooling and maintenance. This is how Amazon Web Services, one of the world’s largest cloud providers, describes the role of data centers.

Why data centers matter in war

Modern military systems handle large volumes of information. Intelligence material must be stored and analyzed, software developed and tested, and algorithms trained. Computing capacity is part of that work.

Artificial intelligence has a particular role. Its defense applications include data analysis, image recognition and decision support. NATO’s AI strategy specifically addresses the military use of dual-use civilian technology and the computing resources it requires.

In Russia, government, corporate, scientific and military development efforts are also interconnected. The US research organization CNA documented those links in its study of Russian artificial intelligence and autonomous systems, published in 2021.

The military significance of an individual data center depends on the systems and organizations it serves. There is also a broader technological effect: reduced access to computing capacity makes it harder to develop Russia’s AI industry and other technologies whose results can be used in defense.

Why Ukraine began striking Russian data centers

Ukraine’s leadership has publicly described the strikes as a response to Russian attacks on Ukrainian digital infrastructure.

On October 8, 2026, Volodymyr Zelenskyy confirmed a strike on a Russian data center. He said Russia had attacked Ukrainian data centers and Ukraine was responding in kind.

The strategic effects can be assessed through lost equipment, interrupted computing, recovery costs and delayed technology projects. That adds pressure to an economy simultaneously financing a war and trying to develop its own digital platforms.

This is especially relevant to AI computing. A new building can be constructed, but bringing an entire facility back into operation also means buying equipment, configuring systems and restoring the connections between them.

Which Russian data centers have been hit?

The October attacks reached several major technology sites:

  • October 8 — Yandex’s data center in Sasovo, Ryazan region.
  • October 9 — Yandex’s data center in Kaluga region.
  • October 11 — Yandex’s data center in Vladimir.
  • October 14 — Sberbank’s facility in Balakovo, Saratov region.
  • October 18 — a data center in St. Petersburg serving VKontakte.

There is an important distinction in Sberbank’s case: Council on Foreign Relations expert Connor Martin describes the facility that was attacked as a data center still under construction. The principal consequence here is a delay in bringing new capacity into service.

How data center strikes affect Russia’s economy

Losing server capacity creates several kinds of costs at once.

First, a company has to restore operations: move workloads, bring in specialists and find replacement equipment. Meanwhile, its customers can lose working hours because applications or databases are unavailable.

Delayed projects bring additional costs.

Connor Martin of the Council on Foreign Relations points to Yandex’s supercomputers’ reliance on US-designed Nvidia A100 accelerators. In his assessment, the difficulty of replacing that hardware could further slow Russian AI development.

This limits the country’s technological capabilities: money and time have to go into restoring what already existed, postponing expansion.

Why banks, businesses and users feel the effects

A single cloud provider can serve many organizations. A problem at one of its facilities can therefore affect different services at the same time: corporate applications, commerce, payments and document processing.

Following the October strikes, Associated Press documented reports of disruptions to banking, commerce and other digital services.

For a user, that means a service is unavailable. For a company, it means delayed operations and extra costs. Across the economy, such disruptions mean lost productivity.

What the strikes mean for Russia

Data centers support the digital economy and the development of technology important to the military as well. Damage creates costs today and limits capabilities tomorrow.

The war is consuming Russian resources at the front and increasingly disrupting the technology infrastructure behind it. Data centers have become one of the clearest examples of that change.

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