Data Centers in Costa Atlántica
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Costa Atlántica – Emerging Edge & Subsea Cable Hub
Costa Atlántica serves as a strategic digital infrastructure location for Argentina, primarily for enterprises requiring low-latency connectivity to subsea cable systems connecting South America to the world. This coastal market is developing, offering essential colocation services for content delivery networks, cable landing station operators, and businesses targeting the Atlantic coast region. Its value lies in providing a direct entry point for international data, bypassing the denser digital ecosystem of Buenos Aires.
Costa Atlántica: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and subsea links, but fewer terrestrial long-haul options than primary markets. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension to providers in hubs like Buenos Aires or São Paulo. |
| Power Cost | $0.07/kWh – as of September 2025 | Competitive pricing. Fossil fuels dominate the grid, with a growing renewables share. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks include river flooding and drought; seismic and cyclone risks are minimal. |
| Tax Incentives | Yes – General | Supportive framework for the digital economy, though no specific data center fiscal incentives exist. |
| Sales Tax | 21% VAT – as of September 2025 | Standard national rate applies to services. |
Network & Connectivity Ecosystem
The connectivity landscape in Costa Atlántica is defined by its strategic coastal location rather than high carrier density.
Carrier Density & Carrier Neutrality: Carrier presence is growing, with at least 2 providers offering services, as of September 2025. Facilities are typically carrier-neutral, providing access to key national backbones and, most importantly, subsea cable operators.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Costa Atlántica, as of September 2025. Businesses require private network interconnects or wavelength services to connect to cloud provider points of presence in major hubs like Buenos Aires.
Internet Exchange Points (IXPs): Public peering is limited within the immediate market. Most traffic exchange occurs through private peering at the data centers or is routed through the national IXP in Buenos Aires, CABASE.
Bare Metal: Bare metal server availability is present, often through providers that specialize in edge locations. Options from providers like Latitude.sh can serve deployments in the region.
Power Analysis
Power infrastructure in the region is adequate for current data center needs, with a focus on cost-effectiveness.
Average Cost Of Power: Industrial electricity is priced at approximately $0.07/kWh, as of September 2025. This competitive rate can significantly lower operational expenditures for power-intensive deployments. The grid mix is dominated by fossil fuels (~65%), with renewables (~30%) and nuclear (~5%) contributing.
Power Grid Reliability: The regional power grid is generally stable. Data centers in the area utilize standard N+1 or 2N UPS systems and multiple backup generators to ensure continuous uptime during any potential utility disruptions.
Market Access, Business & Tax Climate
Costa Atlántica provides targeted access to specific commercial and international markets.
Proximity To Key Business Districts: The market primarily serves as a landing point for subsea cables. Its proximity is less about local business districts and more about being the closest point of presence for international data ingress and egress.
Regional Market Reach: From Costa Atlántica, digital services can effectively reach Argentina's Atlantic coastal population centers and serve as a failover or secondary site for operations based in Buenos Aires.
Tax Advantage For Data Centers: Argentina has a supportive regulatory framework for its digital economy. While direct fiscal incentives for data centers are not specified, the general environment encourages technology investment and infrastructure development.
Natural Disaster Risk
The overall natural disaster risk for Costa Atlántica is low, with an INFORM Risk score of 3 out of 10, as of September 2025. The primary environmental threats are localized and manageable with standard infrastructure planning.
Key natural hazards for the region include:
- River Flood: Score of 7.7
- Drought: Score of 5.6
- Earthquake: Score of 5.5
- Coastal Flood: Score of 3.7
Risks from tsunamis and tropical cyclones are negligible.
