Data Centers in Chos Malal
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Chos Malal, Argentina – Edge Gateway to Patagonia
Chos Malal provides a strategic digital infrastructure point for Argentina's northern Patagonia region. This market is ideal for organizations in the energy, agriculture, and tourism sectors requiring low-latency compute and data storage closer to their operations. Deploying here reduces reliance on distant data centers in Buenos Aires, improving application performance and data sovereignty for regional end-users.
Chos Malal, Argentina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with latency considerations to major international hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via Buenos Aires through private network extensions or IP transit. |
| Power Cost | $0.07/kWh – as of September 2025 | Favorable industrial power rates support cost-effective data center operations. |
| Disaster Risk | Low (3/10) – as of September 2025 | Minimal exposure to significant natural disasters enhances operational stability. |
| Tax Incentives | Yes | General supportive framework for the digital economy; no direct data center fiscal incentives. |
| Sales Tax | 21% VAT – as of September 2025 | Standard national value-added tax applies to services and equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a regional hub, Chos Malal offers access to a focused group of national and local carriers. The primary data center in the market provides carrier-neutral access, ensuring resilient connectivity options.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Chos Malal as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through the primary national hub in Buenos Aires, utilizing long-haul fiber or private network interconnects (PNI).
Internet Exchange Points (IXPs): Public peering is not established directly within Chos Malal. Most network peering occurs through private arrangements or at the national IXPs located in Buenos Aires, which aggregates the country's internet traffic.
Bare Metal: Bare metal server availability is present, offering dedicated compute resources for latency-sensitive workloads. Providers such as Latitude.sh can service the region, delivering high-performance infrastructure without virtualization overhead.
Power Analysis
Average Cost Of Power: The average industrial electricity price is approximately $0.07/kWh as of September 2025. This competitive rate makes running compute-intensive operations more economical compared to other regional markets. Argentina's power mix is sourced from fossil fuels (~65%), renewables (~30%), and nuclear (~5%).
Power Grid Reliability: The national power grid is generally reliable for commercial operations. Data center facilities in the region are engineered with standard redundancies, including UPS systems and backup generators, to ensure uptime and mitigate any potential grid instability.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chos Malal are strategically positioned to serve the energy and agricultural industries prevalent in the Neuquén Province. This proximity provides low-latency connectivity essential for real-time data processing and operational technology.
Regional Market Reach: The market effectively serves northern Patagonia, providing a crucial link for businesses and public sector entities operating in this geographically vast and economically significant region of Argentina.
Tax Advantage For Data Centers: Argentina fosters a supportive regulatory environment for its digital economy. While there are no specific tax incentives for data centers, this framework encourages technology investment and digital service delivery across the country.
Natural Disaster Risk
Chos Malal 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 ensures a stable operating environment with minimal disruption from natural events.
The primary environmental risks to consider are:
- River Flood: The highest individual risk factor, reflecting the region's hydrology.
- Drought: A notable secondary risk that can impact local resources and agriculture.
- Earthquake: A moderate risk, consistent with the broader Andean region.
- Coastal Flood: A low-level national risk that has minimal direct impact on this inland location.
