Rostelecom is developing a data center for Russian chemical firm PhosAgro outside St. Petersburg, Russia.

The Russian telco this week said it is beginning construction of a new data center for the PhosAgro Group at the Volkhov branch of PhosAgro subsidiary Apatit JSC.

A groundbreaking ceremony has taken place, and construction is expected to be completed by 2026.

Full details of the facility weren’t shared, but the companies said the modular facility will include two redundant high-speed communication channels, backup batteries, and diesel generators.

Volkhov is an industrial town and the administrative center of Volkhovsky District in Leningrad Oblast, some 50km (31 miles) east of St. Petersburg.

The facility will be PhosAgro's third data center. The company opened a data center in Kirovsk in 2014, and another in Cherepovets in 2017.

Denis Novikov, general director of JSC Apatit, said: "PhosAgro is implementing an extensive import substitution program for software and IT infrastructure. Our company is the leader in the Chemicals and Pharmaceuticals Center for the number of significant projects implemented, and one of the leaders in the Russian economy in the import substitution of foreign software and IT infrastructure.”

Novikov noted key projects include migrating users and hardware to domestically-made software and applications, including replacing the Oracle ERP system.

“Furthermore, the company is transforming its use of artificial intelligence with the goal of integrating analytical and generative AI into all production and corporate business processes. All of this will require additional computing and data storage capacity, so we are starting to build it today," he added.

PhosAgro Group is the largest European producer of phosphate-based fertilizers. Its Apatit unit is focused on mining and processing mineral raw materials for manufacturing chemicals and fertilizers.

Valery Ermakov, deputy president and chairman of Rostelecom's board, said: "This is a strategically important project for Rostelecom. It combines our expertise in data center construction, telecommunications, and service maintenance. We're not just building a facility—we're creating a technological ecosystem in this key region that will allow PhosAgro to securely and effectively implement its digital initiatives.”

Ermakov continued: “The establishment of a secure communications channel between Volkhov and Cherepovets, which will ensure reliable integration with the company's other production assets, makes the project particularly significant. I'm confident this project will become a benchmark for other manufacturing companies, demonstrating how modern digital solutions can be successfully implemented in Russia's industrial regions."

Rostelecom operates data centers in Moscow, Novosibirsk, St. Petersburg, Udomlya, Yekaterinburg, Murmansk City, and Chita. The company also has plans for another 55MW hyperscale data center in Moscow and is said to be developing a facility in Armenia. Rostelecom subsidiary Rostelecom-Data Centre operates 21,000 racks across Russia. Rostelecom's subsidiary RTK-TsOD launched a data center in the Nizhny Novgorod region of Russia earlier this year.