Data Centers in Valparaiso

Valparaiso – Pacific Gateway for Chilean Digital Infrastructure

Valparaiso serves as a strategic coastal hub, providing resilient data center capacity and connectivity for businesses targeting Chile's primary commercial centers. Its location offers a crucial alternative to Santiago for disaster recovery while supporting the logistics and trade industries that anchor the regional economy. This market is ideal for enterprises requiring low-latency access to Pacific subsea cable systems and a reliable power grid with a high concentration of renewables.

Valparaiso: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Valparaiso market is supported by over two national and regional carriers, as of September 2025. The data centers provide carrier-neutral interconnection, offering redundant pathways to Santiago and international subsea cables.

Direct Cloud On-Ramps: The region features one direct cloud on-ramp, enabling dedicated access to one cloud region as of September 2025.

• Oracle Cloud

Additional cloud providers like AWS and Google Cloud are accessible via private network extensions to the primary hub in Santiago.

Internet Exchange Points (IXPs): While Valparaiso does not host a major public IXP, most network peering occurs privately within data centers or via PIT Chile in the nearby Santiago metropolitan area. This ensures efficient traffic exchange for the country's core internet infrastructure.

Bare Metal: Bare metal server options are available from providers focused on Latin American markets. Deployment is possible through providers such as Latitude.sh, allowing for dedicated compute capacity close to end-users.

Power Analysis

Average Cost Of Power: Industrial power costs in the region range from CLP $90.00–$115.00/kWh, as of September 2025. This pricing, combined with a grid heavily reliant on renewables, offers a stable and predictable operational cost model for compute-intensive workloads.

Power Grid Reliability: Chile's national power grid is well-engineered and reliable, particularly in its central regions. Data centers in Valparaiso benefit from this stability, and facilities are typically built with multi-substation support and full N+1 redundancy to ensure consistent uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the Valparaiso region are positioned to support the city's significant port and logistics operations. They also provide a secondary, disaster-recovery location for the financial and corporate headquarters located approximately 120 km away in Santiago.

Regional Market Reach: Valparaiso is a key digital gateway for central Chile, serving a population of several million. Its access to trans-Pacific subsea cables makes it an effective point of presence for content delivery networks and cloud providers serving the broader west coast of South America.

Tax Advantage For Data Centers: Chile currently offers no special tax incentives for data center construction or operation. The primary financial advantage comes from operating within a stable and mature market with clear regulatory frameworks.

Natural Disaster Risk

Valparaiso has a low overall disaster risk profile, with an INFORM Risk score of 3.2 out of 10, as of September 2025. However, as a coastal city in a seismically active zone, specific high-risk factors must be addressed through resilient infrastructure design.

Key natural hazards include:

• Earthquake: 9.6/10
• Tsunami: 8.6/10
• River Flood: 5.5/10
• Coastal Flood: 2.7/10

The risk from tropical cyclones and drought is negligible.