Data Centers in Mendoza
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Mendoza – Strategic Hub for Western Argentina and Chile
Mendoza serves as the primary technical gateway for businesses targeting the industrial and agricultural heartland of the Cuyo region. Establishing a presence here ensures low-latency access to the Chilean border while avoiding the density and operational overhead of the Buenos Aires metropolitan hub.
Mendoza: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional performance for western Argentina. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Nearest primary hub is Buenos Aires. |
| Power Cost | $0.07/kWh – as of January 2026 | Highly competitive rates for regional operations. |
| Disaster Risk | Low (3.0/10) – as of January 2026 | Generally stable Andean foothills environment. |
| Tax Incentives | Varies – as of January 2026 | Supportive digital economy framework exists. |
| Sales Tax | 21% VAT – as of January 2026 | National value-added tax rate applies. |
Network & Connectivity Ecosystem
Mendoza acts as a critical network relay point between the Atlantic and Pacific coasts. As of January 2026, the ecosystem provides sufficient regional density for most enterprise requirements.
Carrier Density & Carrier Neutrality: Carrier count: over 5. The market is served by approximately 5–10 providers, including national incumbents and regional specialists, as of January 2026. This environment provides enough path diversity for standard mid-market applications and regional redundancy.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. While no direct hyperscale on-ramps from AWS, Google Cloud (GCP), or Microsoft Azure currently reside in Mendoza as of January 2026, low-latency access is provided via high-capacity fiber and private wave services to the primary on-ramp hub in Buenos Aires.
Internet Exchange Points (IXPs): Local traffic exchange is managed through regional nodes of the national exchange system to maintain performance for local users. These nodes facilitate efficient peering and keep regional traffic local as of January 2026.
Bare Metal: Infrastructure teams can leverage bare metal services from regional specialists and global providers like Latitude.sh or OVHcloud. This allows for managing local workloads without the overhead of physical hardware maintenance as of January 2026.
Power Analysis
Power availability is a strong point for the region, supported by a diverse generation mix that includes a high percentage of hydroelectricity.
Average Cost Of Power: Industrial electricity is priced at approximately $0.07/kWh, as of January 2026. This price point allows for predictable operating expenses and provides a significant cost advantage over many North American and European tier one markets.
Power Grid Reliability: The local grid is well-engineered, utilizing a mix of hydroelectric and fossil fuel generation. Redundant substation support in key industrial corridors ensures the stability required for enterprise-grade data center operations as of January 2026.
Market Access, Business & Tax Climate
Mendoza provides a strategic jumping-off point for businesses scaling across the Southern Cone.
Proximity To Key Business Districts: Data centers are located near the commercial core and major industrial zones of Mendoza. This placement is essential for the wine, energy, and logistics industries that require high-speed data processing for local operations as of January 2026.
Regional Market Reach: As the primary hub for the Cuyo region, Mendoza serves a local population of over 2 million. Its location also facilitates cross-border digital trade with Chile, making it a natural choice for regional expansion as of January 2026.
Tax Advantage For Data Centers: Argentina maintains a supportive regulatory framework for the digital economy to encourage technological investment. This environment helps customers manage long-term costs while scaling their digital footprint in a high-growth market as of January 2026.
Natural Disaster Risk
Mendoza is classified with a Low risk profile, scoring 3.0 out of 10 as of January 2026. The region is generally stable, though facility operators focus on specific environmental factors common to the Andean foothills.
The primary natural hazards identified for this location include:
- River Flood (7.7)
- Drought (5.6)
- Earthquake (5.5)
- Epidemic (4.4)
Other risks such as tropical cyclones or coastal events are not applicable due to the inland location as of January 2026. Local infrastructure is typically hardened to account for the seismic activity levels associated with the region.
