Data Centers in Arica

Arica – Strategic Pacific Gateway for Subsea Connectivity

Executive Summary

Arica acts as the primary digital gateway for the northern Chilean territory and the Andean interior. This market is a strategic necessity for operators needing low-latency subsea cable landings to bridge traffic between the Pacific backbone and regional logistics hubs.

Arica: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 5 as of December 2025. 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 December 2025. 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 largely handled through private interconnects or via national exchange nodes located in Santiago. Local traffic exchange often relies on point-to-point connections between subsea participants and local service providers.

Bare Metal: Local availability is primarily limited to regional telecommunications firms. Global bare metal services from providers such as Latitude.sh or Hivelocity are typically served via Santiago-based infrastructure to reach northern territories.

Power Analysis

Average Cost Of Power: Industrial electricity rates are approximately $0.12 – $0.16/kWh as of December 2025. The Chilean grid incorporates a renewable energy mix of roughly 70%, providing a predictable price floor for operators looking to manage long-term energy costs without relying on volatile fossil fuel imports.

Power Grid Reliability: The local grid is engineered to support 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 December 2025. 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.