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Data Centers in Colombia

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Colombia – The Digital Hub for Northern South America

Colombia is rapidly emerging as a primary data center market for businesses targeting northern South America and the Andean region. Its strategic location, favorable tax incentives, and growing cloud connectivity provide a resilient and cost-effective platform for enterprises to deploy critical infrastructure, reduce latency, and capture new revenue streams.

Colombia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong submarine cable access on two coasts, improving terrestrial networks.
Direct Cloud On-RampsOver 3 — as of September 2025Direct access is available for AWS and Oracle Cloud.
Power CostCOP 450.00–550.00/kWhIndustrial power costs are competitive for the region.
Disaster RiskHigh (5.3/10) — as of September 2025Primarily driven by seismic and flood risks in specific zones.
Tax IncentivesYesLaw 1715 provides significant, long-term tax benefits for renewable energy projects.
Sales Tax19% VAT — as of September 2025Standard Value Added Tax applies to most goods and services.

Network & Connectivity Ecosystem

Colombia's connectivity landscape is one of the most developed in the region, with significant investment in both subsea and terrestrial fiber.

Carrier Density & Carrier Neutrality: The market supports over 12 distinct providers as of September 2025. Carrier-neutral facilities in Bogotá offer a diverse ecosystem for interconnection, ensuring competitive pricing and high-performance routing options.

Direct Cloud On-Ramps: With 3 on-ramps providing access to 2 cloud regions as of September 2025, Colombia offers direct, low-latency connections to major platforms. Native access is available for AWS and Oracle Cloud, enabling hybrid architectures and seamless cloud integration.

Internet Exchange Points (IXPs): The primary IXP is NAP Colombia, located in Bogotá. It facilitates efficient local traffic exchange, reducing reliance on international transit and improving application performance for Colombian end-users.

Bare Metal: Bare metal server options are readily available from providers serving the Latin American market. Companies like Latitude.sh offer dedicated server solutions for workloads requiring maximum performance and direct hardware control.

Power Analysis

Colombia’s power infrastructure is a key asset, characterized by a high percentage of renewable energy and a stable grid in its economic centers.

Average Cost Of Power: Industrial electricity rates typically range from COP 450.00 to COP 550.00/kWh as of September 2025. This competitive pricing, combined with a green energy mix, offers a compelling value proposition for sustainability-focused operations.

Power Grid Reliability: The national grid is reliable, particularly in the Bogotá metro area where most major data centers are located. The energy mix is dominated by hydropower (~72%), providing a consistent and stable power source supplemented by fossil fuels for dependable baseload capacity.

Market Access, Business & Tax Climate

Colombia presents a strategic base for accessing a large and growing digital market, supported by a pro-business environment.

Proximity To Key Business Districts: Data centers are concentrated in and around Bogotá, the nation's economic and political capital. This provides low-latency connectivity to the financial services, government, and enterprise sectors headquartered there.

Regional Market Reach: From Colombia, businesses can effectively serve not only a domestic population of over 50 million but also neighboring markets in Venezuela, Ecuador, Peru, and Panama. Its dual coastline offers connectivity advantages for reaching both Central America and the wider South American continent.

Tax Advantage For Data Centers: Colombia offers significant financial incentives through Law 1715. This legislation provides a 30-year period of tax and exemption benefits for projects involving renewable energy, a framework directly applicable to data center developments focused on sustainable power.

Natural Disaster Risk

Colombia has a High natural disaster risk profile, rated 5.3 out of 10, driven by its location in a seismically active region and its exposure to multiple climate hazards as of September 2025.

The primary risks for infrastructure are:

  • Earthquake: With a score of 8.9, seismic activity is the most significant natural hazard, particularly along the Andean mountain ranges.
  • Tsunami: Rated 8.1, this risk is a major concern for coastal infrastructure along the Pacific and Caribbean shorelines.
  • River Flood: Scoring 7.0, seasonal flooding poses a risk in low-lying areas and river basins.
  • Coastal Flood: With a score of 6.2, this is a material risk for any assets located directly on the coast.
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