Data Centers in Mendoza
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Mendoza, Argentina – A Strategic Edge in the Andes
Mendoza is an emerging edge market in Argentina, offering a stable and low-risk environment for workloads serving the Cuyo region and western Argentina. It provides a strategic location for disaster recovery and localized compute, away from the primary data center hub of Buenos Aires, with favorable power costs.
Mendoza, Argentina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, though international routes are limited and rely on Buenos Aires. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Buenos Aires. Private network extensions are available. |
| Power Cost | $0.07/kWh, as of September 2025 | Competitively priced electricity, significantly lower than many regional and global markets. |
| Disaster Risk | Low (3/10), as of September 2025 | Low overall natural disaster risk, with primary concerns from floods and earthquakes. |
| Tax Incentives | Yes | Argentina has a supportive regulatory framework for the digital economy. |
| Sales Tax | 21% VAT, as of September 2025 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market is developing, with one primary provider operating two facilities as of September 2025. This focused presence offers reliable local and national connectivity options.
Direct Cloud On-Ramps: Mendoza does not have any direct cloud on-ramps. Secure, private connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure must be established through network providers via the primary hub in Buenos Aires.
Internet Exchange Points (IXPs): There are no public Internet Exchange Points located in Mendoza. Peering is typically handled privately or routed through the national IXP in Buenos Aires (CABASE), which is the center of connectivity for the country.
Bare Metal: Bare metal server options are available in Argentina, primarily from providers located in Buenos Aires. Services from companies like Latitude.sh can serve the Mendoza region with reasonable latency.
Power Analysis
Average Cost Of Power: Industrial power in Mendoza averages $0.07/kWh, as of September 2025. This competitive pricing makes running high-density compute workloads more economical than in other South American markets. The national grid is primarily powered by fossil fuels (~65%), with a significant and growing renewables segment (~30%).
Power Grid Reliability: The regional power grid is stable and sufficient for supporting data center operations. Infrastructure within key business areas is well-engineered to meet commercial and industrial uptime requirements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Mendoza serve the city's agricultural, wine production, and oil and gas industries. The location is ideal for businesses requiring low-latency processing and data storage within western Argentina.
Regional Market Reach: Mendoza is a strategic point for serving the Cuyo region and acts as a connectivity gateway to neighboring Chile. It provides a secondary Argentinian location for geographic redundancy.
Tax Advantage For Data Centers: Argentina fosters a supportive regulatory environment for its digital economy, which can benefit technology investments. While specific data center fiscal incentives are not detailed, the general framework encourages digital business operations.
Natural Disaster Risk
Mendoza has a low overall disaster risk profile, with an INFORM Risk score of 3 out of 10 as of September 2025. The primary natural hazards to consider are managed through modern infrastructure and planning.
Key risks include:
- River Flood: The most significant natural hazard for the region.
- Drought: A notable risk given the semi-arid climate.
- Earthquake: The area is seismically active, though building codes reflect this.
- Coastal Flood: This is not a direct risk to the inland Mendoza market.
