Data Centers in Arica
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Arica – Strategic Gateway for Andean Connectivity
Arica is an emerging edge data center market positioned to serve northern Chile, southern Peru, and Bolivia. Its coastal location offers unique subsea cable landing opportunities, making it a strategic choice for businesses requiring low-latency access to Pacific routes and improved resilience for regional traffic. This market is ideal for content delivery networks, mining operations, and logistics companies looking to optimize performance at the edge of South America's digital infrastructure.
Arica: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, with developing international subsea links. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest on-ramps are in Santiago; private network extensions are available. |
| Power Cost | CLP $110.00-125.00/kWh | Sourced from Chile's national grid, with a high renewable energy mix. |
| Disaster Risk | Moderate (3.2/10) | Primarily driven by high earthquake and tsunami risk due to its location. |
| Tax Incentives | No | Chile does not offer specific national tax incentives for data centers. |
| Sales Tax | 19% VAT | Standard Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Arica's connectivity is defined by its strategic position on the Pacific coast, serving as a landing point for subsea cables and a terrestrial gateway to neighboring countries.
Carrier Density & Carrier Neutrality: As a smaller edge market, Arica has a focused carrier presence. The market contains 2 data centers operated by 1 provider as of September 2025. This provides foundational connectivity options, though major interconnection occurs in Santiago.
Direct Cloud On-Ramps: There are no public cloud on-ramps directly in Arica as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the primary hub in Santiago. Secure, private network extensions can be established to bridge this gap.
Internet Exchange Points (IXPs): Public peering is not established in Arica. Most network peering for the region is handled privately or routed through the PIT Chile IXP in Santiago, which aggregates national and international traffic.
Bare Metal: Bare metal server options are available, primarily through providers that can deploy equipment into existing colocation facilities. Global providers like Latitude.sh can service the region, offering dedicated compute for latency-sensitive workloads.
Power Analysis
Chile's power infrastructure is one of the most advanced in South America, with a strong emphasis on renewable energy that benefits data center operators in Arica.
Average Cost Of Power: Industrial power rates in the region are estimated to be between CLP $110.00 and $125.00 per kWh as of September 2025. The country's significant investment in solar and wind energy helps stabilize costs and provides a sustainable power mix for ESG-conscious businesses. The national grid is composed of approximately 70% renewables and 30% fossil fuels.
Power Grid Reliability: The electrical grid serving Arica is part of Chile's national interconnected system, which is engineered for stability. Data centers in the area are supported by reliable power infrastructure, with redundancy built into local substations to ensure high uptime for mission-critical operations.
Market Access, Business & Tax Climate
Arica provides a strategic base for accessing key commercial corridors and markets in the Andean region.
Proximity To Key Business Districts: Data centers in Arica are positioned to serve the city's port, logistics centers, and the region's significant mining industry. This proximity reduces latency for critical industrial and trade applications.
Regional Market Reach: The market offers a unique digital gateway to southern Peru and landlocked Bolivia. Deploying infrastructure in Arica allows businesses to deliver services to these markets with significantly lower latency than from Santiago or other South American hubs.
Tax Advantage For Data Centers: Chile does not offer specific tax incentives for data center development or operation. The business environment operates under a standard 19% VAT and a stable, well-defined corporate tax structure.
Natural Disaster Risk
Arica's overall disaster risk profile is moderate, with an INFORM Risk score of 3.2 out of 10 as of September 2025. The risk profile is dominated by specific, high-impact geological hazards.
Data center selection in this market requires careful consideration of facility engineering and disaster recovery planning. Key natural hazards include:
- Earthquake: 9.6/10
- Tsunami: 8.6/10
- River Flood: 5.5/10
- Coastal Flood: 2.7/10
Risks from tropical cyclones and drought are negligible.
