Data Centers in Arica
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Arica – Essential Pacific Gateway to the Andean Interior
Executive Summary
Arica is the primary digital entry point for the northern Chilean territory and the Andean interior. This market is a strategic necessity for operators needing reliable subsea cable landings to bridge traffic between the Pacific backbone and regional logistics hubs. Success in this corridor depends on leveraging its position as the shortest path for data traveling to landlocked neighbors.
Arica: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable landing point with strong subsea cable integration. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Nearest on-ramps in Santiago; access via private transport. |
| Power Cost | $0.12 – $0.16/kWh – as of January 2026 | Competitive pricing with a significant renewable energy mix. |
| Disaster Risk | Moderate (3.2/10) – as of January 2026 | High seismic activity requires purpose-built engineering. |
| Tax Incentives | No – as of January 2026 | No local data center specific incentives are documented. |
| Sales Tax | 19% VAT – as of January 2026 | Standard national value-added tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5 as of January 2026. The market is defined by international subsea providers and regional fiber operators that connect Chile to Peru and Bolivia. While the number of physical facilities is small, carrier neutrality is a standard feature for the primary cable landing stations.
Direct Cloud On-Ramps: 0 as of January 2026. There are no local direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure. Most organizations use dedicated fiber backhaul to Santiago to reach major cloud regions and global service endpoints.
Internet Exchange Points (IXPs): Peering is handled through private interconnects or via national exchange nodes located in Santiago. Local traffic exchange relies on point-to-point connections between subsea participants and local service providers.
Bare Metal: Local availability is limited to regional telecommunications firms. Global bare metal services from providers such as Hivelocity or Leaseweb are typically served via Santiago infrastructure to reach northern territories.
Power Analysis
Average Cost Of Power: Industrial electricity rates are approximately $0.12 – $0.16/kWh as of January 2026. The Chilean grid incorporates a renewable energy mix of roughly 70%, providing a predictable price floor for operators managing long-term energy costs.
Power Grid Reliability: The local grid supports industrial operations with redundant substation configurations. Infrastructure in this corridor is maintained to meet the uptime requirements of critical coastal telecommunications hubs and port logistics.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Arica are located near major logistics and trade zones, providing the low-latency support required for cross-border commerce and port operations. Its location makes it the primary digital gateway for northern mining and logistics industries.
Regional Market Reach: This city serves as the shortest digital path for international data traveling from the Pacific into the Andean interior, including southern Peru and landlocked Bolivia. It effectively serves a regional population of several million people.
Tax Advantage For Data Centers: Businesses operating here benefit from the stability of the national regulatory framework for infrastructure planning. The general tax environment is supportive of foreign direct investment in the telecommunications sector.
Natural Disaster Risk
Risk Profile: Moderate (3.2/10) as of January 2026. Facilities in Arica are purpose-built to withstand high seismic and coastal exposure.
- Earthquake (9.6): Extremely high seismic activity requires all infrastructure to meet stringent structural standards.
- Tsunami (8.6): Coastal risks require facilities to be located at safe elevations or feature specialized flood defenses.
- River Flood (5.5): Seasonal flooding risks exist in specific areas near the urban core.
- Coastal Flood (2.7): A factor for beachfront infrastructure, though manageable with proper site selection.
Other risks, such as tropical cyclones or droughts, are considered minor or not listed for this region.