Eleveight AI marks new rise in regional AI development

By Olivia Law

Last week, Eleveight AI opened Armenia’s first AI factory in Gagarin, a small village in the Gegharkunik region.

The facility is the first data center in the South Caucasus to use a NVIDIA B300 Blackwell graphics processing unit (GPU). GPUs, unlike central processing units (CPU) used for regular computers, have the technical capability to process and render AI computations. This development comes after Yerevan State University installed Armenia’s first supercomputer capable of AI computing last December.

The Armenia-based Eleveight AI formed following the “Memorandums of Understanding” signed between Armenia and the United States last August. After the two countries agreed to “create linkages between their respective industries and commercialization of artificial intelligence applications,” Armenian developers applied and were approved for the purchase of NVIDIA GPUs. 

The newly created Ministry of Armenia’s High-tech industry helped fund and support the facility. According to Eleveight AI, roughly $120 million have already been allocated to complete the first phase of the project. 

In a press conference on June 1, the Minister of Armenia’s High-Tech Industry Mkhitar Hayrapetyan said he hopes investing in AI will turn Armenia from a consumer of technology to a “producer and creator.” 

According to the press release, 20% of the facility’s computing capacity will be reserved for use by “Armenian universities, research centers, and non-commercial initiatives.”

While Eleveight AI currently has a computing capacity of 1.8 mega-watts (MW), they intend to expand the facility to 32 MW. This number refers to the workload and information the facility can handle. 

However, as GPUs like the NVIDIA Blackwell compute at higher rates, they require more energy and greater cooling requirements. Environmental and electricity costs of AI data centers have become a concern internationally. 

During a press release on June 1, Eleveight AI’s co-founder and CEO Arman Aleksanyan noted that Armenia’s climate — particularly regions of high altitude, help reduce environmental harm. The press release noted that, “The facility relies on natural cooling mechanisms for 11 months of the year,” 

The center is equipped with solar panels and a cooling system that doesn’t require water, Aleksanyan added, decreasing the facility’s strain on local resources. 

While Eleveight AI was the first to open an AI-focused data center in Armenia, other companies have already begun developing in the region. Firebird AI, a San Francisco-based company, is in the process of developing a larger data center in the city of Hrazdan. According to Firebird AI, with a first-phase investment of around $500 million, the company aims to reach a capacity of above 100 mega-watts by the end of 2027.