During the Cold War, the Soviet Union’s smallest republic was an electronics and tech center for the Communist superpower. Now Armenia is on track to become one of the world’s top hubs for American AI infrastructure, Bloomberg reports.

In August, a San Francisco-based startup called Firebird began operations of a data center in Hrazdan, Armenia, that’s set to reach 300 megawatts and more than 70,000 cutting-edge Nvidia Corp. chips by the end of next year.

A fifth of its computing power is reserved for domestic use—to power local research, government and startup ecosystems—with the remainder allocated to foreign firms, including US ones like Perplexity AI.

Firebird stated that the Hrazdan data center could become the largest computing cluster in the region and one of the largest in Europe.

As The Wall Street Journal previously reported, Washington used Nvidia's export permit for AI chips as a diplomatic tool: The US hoped that deepening economic cooperation with it would encourage Armenia to adopt a more constructive stance in peace talks with Azerbaijan.