The research aims to explore new approaches and solutions to modernize connectivity between Europe and Asia through Armenia by means of digitalization and INSTC priorities. The complexity and diversity of governance in Asia, along with the sensitive issues in the South Caucasus stemming from the escalation of the Nagorno-Karabakh conflict in 2020, highlight the need for investment in “soft” infrastructure. This is evident in the INSTC project, particularly in terms of digital decision-making and spatial administration. Digitalizing the Armenian section of the INSTC, alongside data-driven and technology-based approaches to handling sensitive matters, would also significantly contribute to energy security and the internationalization processes. Another research objective is to restore the geopolitical balance that was disrupted after 2020. Being bypassed by the main routes between Europe and Asia, Armenia holds unique geopolitical advantages as a South Caucasus country. Its potential to bridge policies stems from its membership in the Eurasian Economic Union (EAEU) alongside five other post-Soviet states and its agreement with the EU through the Comprehensive and Enhanced Partnership Agreement (CEPA). One potential avenue for this is new economic infrastructure, such as the “Meghri” Free Economic Zone on the border with Iran, which has yet to become operational due to political will and regulatory contradictions. The authors believe that establishing an alternative route will foster policy diversification and modernize relations, both of which are essential for stabilization and sustainable development.