Data Centers in Costa Atlántica
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Costa Atlántica, Argentina – Coastal Edge & Regional Access
Executive Summary
The Costa Atlántica market provides essential digital infrastructure for Argentina's Atlantic coastal region, serving key economic centers outside of Buenos Aires. It is an ideal location for organizations requiring lower latency access to provincial commercial hubs, tourism centers, and logistical ports. This market delivers a cost-effective alternative for secondary and disaster recovery sites supporting primary operations in the capital.
Costa Atlántica, Argentina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Buenos Aires and São Paulo; private connections are available. |
| Power Cost | $0.07/kWh – as of September 2025 | Favorable industrial electricity rates help control operational expenses. |
| Disaster Risk | Low (3/10) – as of September 2025 | Main risks include river flooding and drought; seismic risk is moderate. |
| Tax Incentives | Yes | A supportive digital economy framework is noted, but no direct data-center fiscal incentives. |
| Sales Tax | 21% VAT – as of September 2025 | The standard Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier availability includes 2 providers as of September 2025. The ecosystem is developing, with connectivity primarily focused on serving the regional population and business centers along the coast.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within the immediate Costa Atlántica market as of September 2025. Businesses connect to major cloud providers via private network extensions or IP transit to the primary national hub in Buenos Aires.
Internet Exchange Points (IXPs) Peering is predominantly handled through the CABASE Internet Exchange Point in Buenos Aires. Traffic from the Costa Atlántica region routes to this national hub to interconnect with other networks, content providers, and cloud services.
Bare Metal Bare metal server options are available, typically provisioned from providers with a presence in the broader Latin American market. Providers such as Latitude.sh offer compute solutions that can serve this region from nearby data centers.
Power Analysis
Average Cost Of Power The average industrial electricity price is approximately $0.07/kWh, as of September 2025. This competitive rate makes the region attractive for managing the significant power costs associated with data center operations. Argentina's grid is powered by a mix of fossil fuels (~65%), renewables (~30%), and nuclear energy (~5%).
Power Grid Reliability The power grid serving the main commercial areas is stable and sufficient for business operations. Data center facilities in the region are engineered with full UPS and generator backup systems to ensure uptime and meet service level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in this market are positioned to serve the key cities and industries along Argentina's Atlantic coast, including tourism, shipping, and agriculture. This provides low-latency connectivity for regional operations.
Regional Market Reach The Costa Atlántica serves as a digital gateway for the dense population centers within the Province of Buenos Aires located outside the federal capital. It is an effective point of presence for content delivery and services targeting this significant domestic market.
Tax Advantage For Data Centers Argentina maintains a supportive regulatory framework for its digital economy, which helps streamline investment and operations. While specific data center tax breaks are not defined, the generally favorable business climate for technology is an advantage for long-term planning.
Natural Disaster Risk
The overall disaster risk for the region is rated as Low (3/10), as of September 2025. The risk profile is driven primarily by environmental factors rather than significant seismic or storm activity.
Key natural hazards include:
- River Flood: The highest individual risk factor for the area.
- Drought: A significant, recurring environmental challenge.
- Earthquake: A moderate risk, though less severe than in the western parts of the country.
- Coastal Flood: A consideration for any facility located directly on the coastline.
Tsunami and tropical cyclone risks are negligible for this location.
