Data Centers in Chos Malal
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Chos Malal, Argentina – Edge Capabilities for Regional Operations
Chos Malal serves as a developing edge market in Argentina, primarily for organizations requiring localized data processing and storage to support regional agriculture, energy, or tourism sectors. This location is best suited for workloads that can tolerate higher latency to major cloud regions in exchange for proximity to end-users in the Neuquén province. Deploying infrastructure here addresses specific geographic needs rather than mainstream, low-latency enterprise demands.
Chos Malal, Argentina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, but limited international routes from this regional location. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Buenos Aires; access requires national backhaul. |
| Power Cost | $0.07/kWh – as of September 2025 | Competitive pricing for industrial power supports cost-effective operations. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are river floods and drought; seismic activity is moderate. |
| Tax Incentives | Yes | General support for the digital economy, but 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 market, Chos Malal has limited carrier density, with access to national providers. Data center facilities here typically offer connectivity to a select number of networks, with options being fewer than in major hubs like Buenos Aires.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Chos Malal as of September 2025. Access to hyperscale clouds like AWS, Google Cloud, or Microsoft Azure requires network backhaul to interconnection points in Buenos Aires. Organizations can establish connectivity through private network links or wavelength services from national carriers.
Internet Exchange Points (IXPs): Public peering is not established in Chos Malal. Most network peering occurs privately between carriers or is routed through the primary national exchange, CABASE, located in Buenos Aires.
Bare Metal: Bare metal server availability is limited. Regional deployments are typically managed through providers with a national presence, such as Latitude.sh, which can service remote locations from larger metropolitan areas.
Power Analysis
Average Cost Of Power: Industrial electricity is priced at approximately $0.07/kWh as of September 2025. This competitive rate makes running compute and storage infrastructure more economical compared to other South American markets. Argentina's power mix is dominated by fossil fuels (~65%), with significant contributions from hydroelectric (~18%) and other renewables.
Power Grid Reliability: The regional power grid is generally stable for commercial use but may not have the extensive redundancy found in major data center hubs. For critical workloads, on-site UPS and generator backup systems are essential to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in this region are positioned to support local industries, including oil and gas operations in the Neuquén Basin, agriculture, and tourism. Proximity reduces latency for operational data processing for these core sectors.
Regional Market Reach: Chos Malal provides effective service delivery to the northern Patagonia region of Argentina. It is a strategic point for reaching end-users and business operations throughout the Neuquén province and surrounding areas.
Tax Advantage For Data Centers: Argentina has a supportive regulatory framework for the digital economy, which can benefit technology investments. However, there are no specific fiscal incentives, such as tax credits or abatements, aimed directly at data center construction or operation.
Natural Disaster Risk
Chos Malal has a low overall disaster risk profile, with an INFORM Risk score of 3 out of 10 as of September 2025. While the overall threat is minimal, operators should engineer facilities to mitigate specific, localized environmental risks.
Key natural hazards include:
- River Flood: The highest individual risk factor for the region.
- Drought: A significant consideration for resource planning and cooling systems.
- Earthquake: A moderate risk that requires adherence to appropriate building codes.
- Coastal Flood: A minimal risk factor for this inland location.
