Data Centers in Argentina

Argentina – South America's Emerging Digital Hub

Argentina is a primary digital gateway for South America, offering a cost-effective and resilient environment for businesses targeting the continent's Spanish-speaking markets. Its blend of competitive power pricing, a growing connectivity ecosystem, and a low natural disaster risk profile makes it a strategic choice for deploying scalable infrastructure. This market is ideal for companies prioritizing both performance and operational efficiency.

Argentina: At A Glance

Network & Connectivity Ecosystem

Argentina's connectivity landscape is mature and expanding, providing reliable access to both domestic and international users. The market is well-suited for content delivery, cloud services, and general enterprise workloads.

Carrier Density & Carrier Neutrality: With over 10 network providers active in the country as of September 2025, businesses have ample choice. Carrier-neutral facilities in Buenos Aires are the primary interconnection points, ensuring resilient and competitive network access.

Direct Cloud On-Ramps: Over 1 dedicated cloud on-ramp provides direct connections to 2 major cloud regions as of September 2025. Available providers include:

• AWS
• Oracle Cloud

Internet Exchange Points (IXPs): The primary Internet Exchange Point is the CABASE IXP in Buenos Aires. It is central to the country's internet health, enabling efficient local traffic exchange between carriers and content providers, which significantly reduces latency for end-users.

Bare Metal: Bare metal server options are available, particularly from providers focused on Latin America. Companies like Latitude.sh offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Argentina presents a favorable power environment for data center operations, marked by low costs and a reliable grid in key metropolitan areas.

Average Cost Of Power: The average industrial electricity price is approximately $0.07/kWh as of September 2025. This competitive rate directly lowers operational expenditures for high-density compute environments.

Power Grid Reliability: The power grid, particularly in the greater Buenos Aires region, is well-engineered to support critical infrastructure. Major data centers are supplied by redundant power feeds from multiple substations, ensuring high levels of uptime. The energy mix includes significant contributions from fossil fuels (~65%), renewables (~30%), and nuclear power (~5%).

Market Access, Business & Tax Climate

Argentina offers strategic access to a large domestic market and acts as a hub for regional operations.

Proximity To Key Business Districts: Data centers are primarily located in and around Buenos Aires, providing low-latency connectivity to the nation's financial center, government offices, and major corporate headquarters. This proximity is critical for financial services, media, and e-commerce platforms.

Regional Market Reach: From Argentina, businesses can effectively serve millions of users across South America. Its strong connectivity to neighboring countries like Chile, Brazil, and Uruguay makes it an excellent base for regional service delivery.

Tax Advantage For Data Centers: While direct fiscal incentives for data centers are not specified, the country has a supportive regulatory framework for the digital economy. This environment encourages investment in technology and digital services, creating a stable foundation for business growth.

Natural Disaster Risk

Argentina has a low overall risk profile for natural disasters, ensuring a stable operating environment for critical IT infrastructure.

The country's overall INFORM Risk score is 3 out of 10, classifying it as a low-risk location as of September 2025. Key natural hazard risks are geographically concentrated and generally manageable.

Primary risks include:

• River Flood (7.7/10)
• Drought (5.6/10)
• Earthquake (5.5/10)
• Coastal Flood (3.7/10)

Risks from tsunamis and tropical cyclones are negligible. The primary threats are well-understood, allowing for effective site selection and infrastructure hardening.