Data Centers in Argentina

Argentina – Digital Gateway to the Southern Cone

Executive Summary

Argentina is the primary digital bridge for the Southern Cone, offering critical subsea cable landings and a maturing cloud ecosystem. It is the essential hub for enterprises targeting 45 million local consumers or regional expansion into Uruguay and Chile. This market provides the necessary low latency and high capacity interconnection to drive revenue and secure digital assets.

Argentina: At A Glance

Network & Connectivity Ecosystem

Argentina maintains a sturdy telecommunications foundation, anchored by the landing stations in Las Toninas and a dense fiber grid in the Buenos Aires metro area.

Carrier Density & Carrier Neutrality: Carrier count: over 10 – as of December 2025. While the market was historically dominated by incumbents, current trends favor neutral facilities that allow for competitive cross connects and diverse routing.

Direct Cloud On-Ramps: Over 1, enabling access to 2 cloud regions – as of December 2025. This includes dedicated access for AWS and Oracle Cloud, significantly reducing the need for long haul traffic back to North American hubs.

Internet Exchange Points (IXPs): CABASE operates a highly effective national network of IXPs, ensuring that local traffic stays local to minimize latency and transit costs.

Bare Metal: High performance compute is readily available via providers such as Latitude.sh, providing automated server deployment for latency sensitive applications.

Power Analysis

The Argentine energy sector is a sophisticated mix of traditional and sustainable sources, providing a stable foundation for industrial data center operations.

Average Cost Of Power: Industrial electricity: $0.07/kWh – as of December 2025. This rate is competitive within the South American context, helping operators manage overhead while maintaining high density cooling. The grid is powered by approximately 65% fossil fuels and 30% renewables.

Power Grid Reliability: Major data center corridors in Buenos Aires and Pilar utilize well-engineered utility feeds with multi-substation support. While national grid challenges occasionally occur, the specific zones used for Tier III facilities are historically resilient.

Market Access, Business & Tax Climate

Managing a digital footprint in Argentina requires an understanding of the local economic landscape, which is heavily concentrated around the capital.

Proximity To Key Business Districts: Most infrastructure is clustered near Buenos Aires (CABA) and northern suburbs like Pilar. This puts hardware within milliseconds of the nation’s financial services, media, and government headquarters.

Regional Market Reach: A presence here serves as a low latency springboard for the entire Southern Cone. It is the most effective way to reach users in Uruguay and southern Brazil without the performance penalties of routing through Sao Paulo.

Tax Advantage For Data Centers: Argentina provides a supportive regulatory framework for digital companies. The biggest financial benefit comes from laws aimed at promoting the knowledge economy, which lowers the total cost of ownership for long term deployments.

Natural Disaster Risk

Argentina is a geographically safe choice for data center placement, characterized by a Low (3.0/10) risk profile as of December 2025. While the risk of catastrophic events is small, facilities must account for specific regional environmental factors.

River Flood (7.7): This is the primary concern for facilities located near the Rio de la Plata; purpose-built centers use elevated flooring and sophisticated drainage to mitigate this.

Drought (5.6): While not a direct threat to hardware, prolonged dry periods can impact the broader energy mix and water cooling requirements.

Earthquake (5.5): Seismic risk is largely restricted to the western Andean regions; facilities in the eastern hubs are generally well-protected.

Epidemic (4.4): Standard public health considerations as noted in regional assessments.

Other hazards such as coastal flooding and tropical cyclones are considered minor or not material for the primary data center clusters.