Data Centers in Pilar
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Pilar – Strategic Access to Argentina's Core
Executive Summary
Pilar serves as a strategic data center market for organizations requiring a presence within Argentina's primary industrial corridor, just outside Buenos Aires. It is an ideal location for disaster recovery and secondary sites, offering attractively priced power and a low natural disaster risk profile. This market provides essential infrastructure for businesses supporting Argentina's core economic activities, ensuring operational resilience.
Pilar: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, though international routes are concentrated in Buenos Aires. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | No native cloud regions. Access is via the primary hub in Buenos Aires. |
| Power Cost | $0.07/kWh – as of September 2025 | Highly competitive pricing for industrial power, below many regional averages. |
| Disaster Risk | Low (3.0/10) – as of September 2025 | Low overall risk score with manageable exposure to specific natural hazards. |
| Tax Incentives | Yes | Argentina has a supportive framework for the digital economy, but no direct data-center fiscal incentives. |
| 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 in Pilar is developing, with at least 1 provider reported as of September 2025. This indicates a focused, rather than densely populated, carrier ecosystem. True carrier neutrality is typically found in the primary national hub of Buenos Aires.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Pilar, with 0 cloud regions available locally as of September 2025. Secure, private connections to major cloud providers are established via network extensions to data centers and peering points in Buenos Aires.
Internet Exchange Points (IXPs): Public peering is not a feature of the Pilar market. All major traffic exchange, including access to Argentina's CABASE IXP, is centralized in Buenos Aires, which handles the vast majority of the country's internet traffic.
Bare Metal: Bare metal server options are available, typically provisioned from providers located in the greater Buenos Aires metropolitan area. These services offer dedicated compute for workloads requiring high performance and security. Providers like Latitude.sh can serve the region effectively.
Power Analysis
Average Cost Of Power: Industrial electricity pricing is approximately $0.07/kWh as of September 2025. This highly competitive rate makes running power-intensive compute workloads more economical than in other major South American markets. The grid mix is primarily fossil fuels (~65%), with significant contributions from renewables (~30%) and nuclear (~5%).
Power Grid Reliability: The power grid serving the Pilar industrial parks is engineered for commercial use. As with any market, data centers in the area are equipped with enterprise-grade UPS systems and backup generators to ensure continuous uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Pilar is located within one of Argentina's most important industrial corridors. Data centers here offer low-latency connectivity to manufacturing, logistics, and corporate operations situated just outside the capital's metropolitan core.
Regional Market Reach: From Pilar, businesses can effectively serve the entire Greater Buenos Aires area, which contains nearly a third of Argentina's population and is the nation's economic engine.
Tax Advantage For Data Centers: Argentina fosters a supportive regulatory environment for its digital economy, encouraging technology investment nationwide. While direct fiscal incentives for data center construction or operation are not specified, the broader government support helps streamline business operations.
Natural Disaster Risk
Pilar has a low overall risk profile for natural disasters, with an INFORM Risk score of 3.0 out of 10 as of September 2025. While the overall threat is minimal, operators should engineer facilities to mitigate the most relevant local risks.
The primary natural hazards for the region include:
- River Flood: The highest individual risk factor for the area.
- Drought: A notable secondary environmental risk.
- Earthquake: A measurable but less severe seismic risk.
