Data Centers in Mendoza
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Mendoza, Argentina – Strategic Hub for Western Argentina
Executive Summary
Mendoza serves as a developing digital hub for Argentina's Cuyo region, offering a stable operating environment with low natural disaster risk. It is best suited for organizations requiring resilient infrastructure to support operations in western Argentina and deliver services with lower latency to the region's agricultural and industrial centers. This market provides a cost-effective alternative to Buenos Aires for disaster recovery and regional workload distribution.
Mendoza, Argentina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via network extension to hubs like Buenos Aires or Santiago. |
| Power Cost | $0.07/kWh – as of September 2025 | Very competitive pricing, beneficial for compute-intensive workloads. |
| Disaster Risk | Low (3/10) – as of September 2025 | Low overall hazard exposure compared to other regional markets. |
| Tax Incentives | Yes – as of September 2025 | Supportive digital economy framework, though no direct data center fiscal incentives exist. |
| Sales Tax | 21% VAT – as of September 2025 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Mendoza’s connectivity is centered on national routes, providing a solid foundation for digital operations targeting western Argentina.
Carrier Density & Carrier Neutrality: The market includes access to over 1 provider as of September 2025. Carrier-neutral facilities offer interconnection between key national networks.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Mendoza. Businesses connect to major cloud providers by establishing private network links to primary hubs in Buenos Aires, Argentina, or across the Andes in Santiago, Chile.
Internet Exchange Points (IXPs): Public peering is limited in Mendoza. Most traffic exchange occurs privately or is routed through the primary national IXP in Buenos Aires, CABASE.
Bare Metal: Bare metal server options are available, enabling businesses to deploy dedicated infrastructure. Providers like Latitude.sh offer solutions suitable for the Argentinian market.
Power Analysis
The region offers very competitive power pricing backed by a diverse energy mix.
Average Cost Of Power: At approximately $0.07/kWh as of September 2025, industrial power rates in Argentina are among the most affordable in South America. This low cost significantly reduces the total cost of ownership for high-density deployments.
Power Grid Reliability: The power grid supporting Mendoza's primary commercial zones is well-engineered for local needs. Data centers in the area utilize standard N+1 or 2N redundancy with backup generators to ensure high uptime. The grid is supplied by a mix of fossil fuels (~65%), renewables (~30%), and nuclear power (~5%).
Market Access, Business & Tax Climate
Mendoza provides a strategic location for accessing Argentina's western provinces and key commercial corridors.
Proximity To Key Business Districts: Data centers in the area are situated to serve Mendoza's robust agricultural, wine production, and oil and gas industries. This proximity enables low-latency applications for local industrial and commercial enterprises.
Regional Market Reach: Mendoza is the primary economic center of the Cuyo region. Digital infrastructure here effectively serves businesses and populations in the provinces of San Juan, San Luis, and La Rioja.
Tax Advantage For Data Centers: While Argentina does not offer specific tax breaks for data center construction or operation, it has established a supportive regulatory framework for the digital economy. This environment aims to foster technology investment and streamline business operations nationally.
Natural Disaster Risk
Mendoza has a low overall risk profile, with an INFORM Risk score of 3 out of 10 as of September 2025. The primary environmental hazards are well-understood and can be mitigated with standard infrastructure planning.
Key natural hazards for the region include:
- River Flood: The highest individual risk factor, managed through modern civil engineering and site selection.
- Drought: A recurring regional concern that can impact water resources and agriculture.
- Earthquake: The area is in a seismically active zone, requiring data centers to be built to appropriate structural codes.
