Data Centers in Argentina

Argentina – South America's Emerging Digital Hub

Executive Summary

Argentina is a primary digital gateway for South America, offering a robust and growing ecosystem for companies targeting the continent's Spanish-speaking population. Its combination of affordable power and a large domestic market makes it a strategic choice for deploying content, cloud services, and disaster recovery infrastructure with favorable latency to neighboring countries. This market provides a solid foundation for businesses aiming to scale operations efficiently across the region.

Argentina: At A Glance

Network & Connectivity Ecosystem

Argentina's connectivity is well-developed, serving as a key hub for regional traffic and offering reliable access to global networks.

Carrier Density & Carrier Neutrality With over 10 providers operating within the country, there is a healthy mix of local and international carriers, as of September 2025. The presence of multiple carrier-neutral data centers ensures competitive interconnection options.

Direct Cloud On-Ramps Over 1 dedicated cloud on-ramp is available in Argentina, enabling direct access to 2 major cloud regions, as of September 2025. This allows for low-latency, secure connections to:

• AWS
• Oracle Cloud

Internet Exchange Points (IXPs) The primary internet exchange is the CABASE IXP, which has nodes throughout the country. It is crucial for keeping domestic traffic within Argentina, reducing latency and improving performance for local users.

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

Power Analysis

Argentina presents an attractive power landscape for data center operators, combining competitive costs with a reliable grid.

Average Cost Of Power Industrial power costs average around $0.07/kWh, as of September 2025. This competitive rate makes Argentina one of the more affordable markets in the region for energy-intensive operations.

Power Grid Reliability The national power grid is generally reliable, particularly in the major metropolitan areas where data centers are concentrated. The energy mix is dominated by fossil fuels (~65%), with a significant and growing share from renewables (~30%) and nuclear power (~5%), providing a degree of supply diversity.

Market Access, Business & Tax Climate

Argentina offers strategic access to both a large domestic market and neighboring South American countries.

Proximity To Key Business Districts Most data centers are located in or near Buenos Aires, providing direct, low-latency connectivity to the nation's financial center, corporate headquarters, and technology hubs. This proximity is essential for financial services, media, and e-commerce platforms.

Regional Market Reach From Argentina, organizations can effectively serve millions of users across South America, including key markets like Chile, Uruguay, and Paraguay. Its central location makes it an ideal peering point for regional content delivery.

Tax Advantage For Data Centers The government maintains a supportive regulatory framework for the digital economy. This environment encourages investment in technology infrastructure without imposing specific, complex fiscal hurdles on data center development.

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. While the overall threat is minimal, operators should be aware of specific regional hazards.

The most significant environmental risks include:

• River Flood: Score 7.7
• Drought: Score 5.6
• Earthquake: Score 5.5
• Epidemic: Score 4.4
• Coastal Flood: Score 3.7

Risks from tsunamis and tropical cyclones are negligible.