Data Centers in Arica
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Arica – Strategic Gateway to the Andean Region
Arica serves as a crucial digital entry point for northern Chile and neighboring landlocked countries like Bolivia. For businesses targeting the Andean mining sector, Pacific trade logistics, and cross-border connectivity, Arica offers a strategic location to reduce latency and improve application performance. This market is ideal for edge computing deployments and disaster recovery sites supporting the primary Santiago hub.
Arica: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, with developing international subsea links enhancing regional access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Santiago; private network extensions are available. |
| Power Cost | CLP 120.00-145.00/kWh | Industrial power costs are competitive for the region, supporting deployment budgets. |
| Disaster Risk | Moderate (3.2/10) | Primarily driven by high seismic and tsunami risk; requires resilient infrastructure. |
| Tax Incentives | No | No specific data center tax incentives are currently offered in this region. |
| Sales Tax | 19% VAT | Standard national value-added tax applies to services and equipment, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Arica has a developing carrier ecosystem with at least two data center providers. While not as dense as Santiago, the market offers access to key national and regional carriers, essential for north-south traffic within Chile and into Peru and Bolivia.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Arica, as of September 2025. Businesses require private network extensions or IP transit to connect to cloud provider facilities, with the nearest major hubs located in Santiago.
Internet Exchange Points (IXPs): Public peering is limited in Arica. Most interconnection is handled privately between carriers or routed through the central IXP in Santiago (IX.CL) to achieve efficient traffic exchange.
Bare Metal: Bare metal server options are available in the broader Chilean market, often provisioned from Santiago data centers. Providers like Latitude.sh can serve customers requiring dedicated compute resources with low latency to the northern regions of the country.
Power Analysis
Average Cost Of Power: Industrial electricity prices in the region are estimated between CLP 120.00–145.00/kWh, as of September 2025. This competitive pricing, combined with Chile's significant renewable energy mix of approximately 70%, makes it an economically viable location for sustained IT operations.
Power Grid Reliability: The electrical grid serving Arica is engineered to support critical port and industrial activities. Data centers in the area leverage this infrastructure, which typically includes redundant power feeds to ensure high levels of uptime for mission-critical workloads.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Arica provide low-latency connectivity to the city's port, logistics centers, and the surrounding agricultural and mining industries. This proximity is critical for supply chain management and real-time operational technology.
Regional Market Reach: Arica's strategic position makes it an ideal digital hub for serving southern Peru, western Bolivia, and northern Chile. It acts as a key node for data traffic entering and leaving the Andean interior via subsea cable landing stations.
Tax Advantage For Data Centers: Chile does not offer specific tax incentives for data center development or operation. The primary financial advantage comes from operating within a stable and transparent economic framework with a straightforward 19% VAT system.
Natural Disaster Risk
Arica has a moderate overall disaster risk profile, with an INFORM Risk score of 3.2 out of 10, as of September 2025. The risk assessment highlights significant exposure to specific, high-impact natural hazards that demand careful 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
While tropical cyclone and drought risks are negligible, the extremely high seismic and tsunami scores underscore the importance of selecting data centers built to modern structural standards in secure locations.
