Data Centers in Arica
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Arica – Strategic Coastal Hub for Pacific Data
Arica serves as a targeted colocation market for enterprises requiring a strategic presence on the Pacific coast of South America. Its coastal location offers unique latency advantages for trans-pacific connectivity and serves as a critical entry point for subsea cable systems. For businesses targeting northern Chile and neighboring countries, Arica provides essential infrastructure to improve application performance and ensure regional uptime.
Arica: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good international connectivity, primarily serving regional and specific subsea cable traffic. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Santiago. Private network extensions are available. |
| Power Cost | CLP $120.00-145.00/kWh | Chile's power mix is over 70% renewable, supporting sustainability goals. |
| Disaster Risk | Moderate (3.2/10) | Elevated risk from specific seismic and coastal hazards requires resilient data center design. |
| Tax Incentives | No | Chile does not offer specific data center tax incentives as of September 2025. |
| Sales Tax | 19% VAT | This is the standard Value Added Tax rate for Chile as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a focused market, Arica provides access to a select number of key national and international carriers. The market features at least one carrier-neutral facility, allowing for interconnection between providers to optimize cost and performance, with a total of 2 data centers from 1 provider available as of September 2025.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Arica as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via private network links to the primary hub in Santiago. This ensures secure, low-latency access to cloud services.
Internet Exchange Points (IXPs): Public peering is limited within Arica. Most network interconnection occurs privately within colocation facilities or is routed through the main exchange points in Santiago, which handles the majority of Chile's domestic traffic.
Bare Metal: Bare metal server options are available in the region, primarily through providers located in the larger Santiago market. Companies like Latitude.sh can provide dedicated server infrastructure with connectivity reaching Arica.
Power Analysis
Average Cost Of Power: Industrial electricity costs in Chile, including Arica, typically range from CLP $120.00 to $145.00 per kWh as of September 2025. The nation's significant investment in renewable energy, particularly solar and wind, helps stabilize prices and offers a greener power profile for data center operations.
Power Grid Reliability: Chile's national power grid is one of the most advanced in South America. The infrastructure serving key commercial areas is well-engineered, with data center operators typically leveraging redundant connections to multiple substations to guarantee high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Arica's data centers serve the city's port operations, logistics companies, and regional mining interests. The infrastructure provides a crucial digital link for trade and resource management in Chile's northernmost region.
Regional Market Reach: Arica is strategically positioned to serve not only northern Chile but also southern Peru and western Bolivia. Its location makes it an important digital gateway for cross-border commerce and communication.
Tax Advantage For Data Centers: Chile currently offers no specific tax incentives for data center development or operation. The standard corporate tax rules apply, with a Value Added Tax of 19% on most goods and services.
Natural Disaster Risk
Arica has a moderate overall disaster risk profile, with a score of 3.2 out of 10 according to INFORM Risk data as of September 2025. The primary environmental threats are seismic and coastal, demanding that any data center infrastructure be built to high resiliency standards.
Key natural hazards include:
- Earthquake: 9.6/10
- Tsunami: 8.6/10
- River Flood: 5.5/10
- Coastal Flood: 2.7/10
While risks from tropical cyclones and drought are negligible, the high potential for seismic activity requires facilities engineered to withstand significant ground-shaking events.