Data Centers in Mendoza
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Mendoza, Argentina – A Strategic Andean Digital Outpost
Mendoza serves as a developing edge data center market in Argentina, ideal for organizations targeting the Cuyo region's agricultural, wine production, and energy industries. Its strategic position offers a viable secondary location for disaster recovery and content delivery, reducing latency for users west of the primary Buenos Aires corridor. This market is built for businesses that require reliable local compute without the high costs of a capital city deployment.
Mendoza, Argentina: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, but limited international and direct cloud access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Santiago, Chile or Buenos Aires; private connectivity is available. |
| Power Cost | $0.07/kWh – as of September 2025 | Very competitive pricing enhances the total cost of ownership for compute-heavy operations. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are manageable geological and weather-related events common to the region. |
| Tax Incentives | Yes – as of September 2025 | Argentina has a supportive digital economy framework but no direct data center fiscal incentives. |
| Sales Tax | 21% VAT – as of September 2025 | Standard national value-added tax rate applies to services and equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a regional market, Mendoza features at least one carrier-neutral facility providing access to Argentina's primary national telecommunication providers, as of September 2025. The market offers foundational connectivity options suitable for most business operations.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Mendoza, as of September 2025. Businesses requiring dedicated cloud access typically establish private network interconnects (PNI) or wavelength services to major hubs like Santiago, Chile or Buenos Aires.
Internet Exchange Points (IXPs): Public peering is limited within Mendoza itself. Most network traffic is exchanged through private peering arrangements or routed via the national IXP in Buenos Aires (CABASE), which is central to Argentina's internet ecosystem.
Bare Metal: Bare metal server options are available in the broader Argentinian market, often provisioned from data centers in Buenos Aires. Providers like Latitude.sh offer compute solutions that can serve the Mendoza region.
Power Analysis
Average Cost Of Power: The industrial electricity rate in Mendoza is approximately $0.07/kWh, as of September 2025. This highly competitive price makes the region attractive for workloads with significant power consumption, directly lowering operational expenses.
Power Grid Reliability: Argentina's power grid, which includes a mix of fossil fuels, hydroelectric, and nuclear sources, provides stable power to major economic centers like Mendoza. Data centers in the area are engineered with standard N+1 or 2N redundancy, including UPS systems and diesel generators, to ensure uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Mendoza are positioned to serve the region's prominent wine production, oil and gas, and technology sectors. This proximity provides low-latency connectivity crucial for local industrial automation, logistics, and business processing.
Regional Market Reach: Mendoza provides effective digital access to over 2 million people in the Cuyo region and acts as a strategic gateway for trade and data traffic flowing to and from neighboring Chile over the Andes.
Tax Advantage For Data Centers: Argentina fosters a supportive regulatory environment for its digital economy, which benefits technology investments generally. While specific data center tax breaks are not formalized, this framework simplifies business operations and encourages technological development.
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 risk landscape is shaped by specific, well-understood regional hazards rather than widespread, high-frequency threats.
Key natural hazards for the region include:
- River Flood: The highest individual risk factor, associated with regional river systems.
- Drought: A significant consideration given the semi-arid climate and reliance on water resources.
- Earthquake: The region is in a seismically active zone, making earthquakes a moderate risk.
- Coastal Flood: This risk is minimal for the inland Mendoza province.
