Data Centers in Medellín
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Medellín – Colombia's Resurgent Tech Hub
Medellín is a strategic emerging market for businesses targeting the Andean region of South America. Its combination of government-backed tech investment and a highly favorable renewable energy profile makes it a compelling location for resilient, cost-effective digital infrastructure. This market is ideal for companies requiring a foothold in Colombia without the higher costs of a capital city.
Medellín: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity; international links are improving. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Bogotá, accessible via private network extensions. |
| Power Cost | Industrial electricity: Unclear | Mix is ~72% renewable (hydropower), keeping costs stable. |
| Disaster Risk | High (5.3/10) – as of September 2025 | Primarily driven by earthquake and river flood exposure. |
| Tax Incentives | Yes | Law 1715 provides significant tax benefits for renewable energy projects. |
| Sales Tax | 19% VAT – as of September 2025 | Standard national value-added tax rate applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Medellín supports a healthy ecosystem of national and regional carriers, with at least one carrier-neutral facility providing interconnection options. While not as dense as Bogotá, the market provides sufficient diversity for most production and disaster recovery needs, with over 15 carriers present as of September 2025.
Direct Cloud On-Ramps There are no public cloud on-ramps located directly within Medellín as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to data centers in Bogotá, the national connectivity hub.
Internet Exchange Points (IXPs) The primary Internet Exchange Point for Colombia is NAP Colombia, located in Bogotá. Peering in Medellín is typically handled privately between carriers or routed through the national exchange, which improves latency and reduces transit costs for traffic within the country.
Bare Metal Bare metal server options are available in the Medellín market, offering dedicated compute for performance-sensitive workloads. Providers like Latitude.sh offer deployments from facilities in the region, catering to customers that require direct hardware control.
Power Analysis
Average Cost Of Power While specific industrial electricity rates for Medellín are not published, Colombia's power grid is dominated by renewables. Approximately 72% of its energy comes from hydropower, as of September 2025, which provides a stable and cost-effective source. This reliance on renewables helps shield businesses from the fossil fuel price volatility common in other markets.
Power Grid Reliability The power grid serving Medellín's primary commercial zones is reliable and well-maintained. Data centers in the area leverage this stability, which is backed by Colombia's significant national investment in hydroelectric power generation and transmission infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Medellín are strategically located to serve the city's main business and technology district, El Poblado. This proximity provides low-latency connectivity for financial services, software development, and healthcare companies concentrated in the area.
Regional Market Reach Medellín serves as an excellent hub for reaching Colombia's population of over 50 million and the broader Andean market, including Ecuador and Peru. Its central location within the country makes it a logical point of presence for content delivery and application hosting.
Tax Advantage For Data Centers Colombia actively encourages technology investment through targeted incentives. Under Law 1715, projects related to renewable energy, including data centers that utilize it, can benefit from significant tax exemptions for up to 30 years, reducing long-term operational costs.
Natural Disaster Risk
Medellín carries a High-risk rating, with an INFORM score of 5.3 out of 10 as of September 2025. The risk profile is driven by the country's geography and geology rather than localized infrastructure deficiencies.
Key natural hazards include:
- Earthquake: The most significant threat, with a score of 8.9, due to the city's location near the Andean Volcanic Arc.
- Tsunami: A national-level risk at 8.1, though Medellín's inland location makes it immune to direct impact.
- River Flood: A notable risk at 7.0, particularly in areas adjacent to the Medellín River.
- Coastal Flood: A regional concern with a score of 6.2, but not a direct threat to the city itself.
- Tropical Cyclone: A lower but present risk for the broader country, rated at 4.0.
