Data Centers in Argentina

Argentina – South America's Emerging Digital Hub

Argentina presents a compelling market for deploying digital infrastructure, balancing cost-effective operations with a growing connectivity ecosystem. It is an ideal location for businesses aiming to serve the massive South American user base, delivering lower latency and improved application performance directly to the region. This strategic presence can secure a competitive advantage in one of the world's fastest-growing digital economies.

Argentina: At A Glance

Network & Connectivity Ecosystem

Argentina's connectivity landscape is mature and expanding, providing a solid foundation for digital services. The market is well-connected both domestically and internationally.

Carrier Density & Carrier Neutrality With over 10 carriers active in the country as of September 2025, businesses have ample choice for transit and peering. A healthy mix of regional and global providers operate within carrier-neutral data centers, primarily in the Buenos Aires metro area.

Direct Cloud On-Ramps The market features over 1 direct cloud on-ramp, enabling dedicated, low-latency access to 2 cloud regions as of September 2025. Available providers with a local presence include:

• AWS
• Oracle Cloud

Internet Exchange Points (IXPs) The primary Internet Exchange Point is the CABASE IXP, which has nodes across the country. This IXP is crucial for keeping domestic traffic local, reducing latency, and lowering transit costs for content and application providers.

Bare Metal Bare metal server options are readily available from multiple providers. Companies like Latitude.sh offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Argentina offers an attractive power environment for data center operators, combining low costs with a reliable grid.

Average Cost Of Power Industrial electricity is priced at approximately $0.07/kWh as of September 2025. This highly competitive rate significantly reduces operational expenditures for compute-intensive infrastructure. The energy mix is dominated by fossil fuels (around 65%), with substantial contributions from renewables (30%) and nuclear (5%).

Power Grid Reliability The power grid, particularly in the greater Buenos Aires area where most data centers are located, is well-engineered for commercial needs. Major facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Argentina provides strategic access to a large regional market within a business environment that is increasingly favorable to digital investment.

Proximity To Key Business Districts Data centers are concentrated near Buenos Aires, the nation's economic and political capital. This proximity provides low-latency connectivity to the financial services, media, and technology industries headquartered there.

Regional Market Reach An infrastructure footprint in Argentina can effectively serve millions of end-users across the Southern Cone, including neighboring markets like Chile, Uruguay, and Paraguay. Its strategic location makes it a vital hub for regional content delivery and cloud services.

Tax Advantage For Data Centers While specific data center fiscal incentives are not detailed, Argentina promotes a supportive regulatory framework for its digital economy. This environment fosters investment and growth in technology and communications infrastructure, creating favorable long-term conditions for operators.

Natural Disaster Risk

Argentina has a low overall risk profile for natural disasters, with an INFORM Risk score of 3 out of 10 as of September 2025. This rating indicates a stable environment for critical infrastructure investment.

Key natural hazard risks include:

• River Flood: The highest individual risk factor.
• Drought: A significant environmental concern in certain regions.
• Earthquake: Primarily a risk in the western, Andean regions of the country.

Risks from tsunamis and tropical cyclones are negligible for the primary data center markets.