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Data Centers in Medellín

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Medellín – Colombia's Emerging Digital Hub

Medellín is becoming a key secondary data center market in Latin America, ideal for businesses targeting the Andean region. Its strategic location and focus on renewable energy provide a compelling alternative to primary hubs, enabling reliable and sustainable digital service delivery to millions of end-users. This market is well-suited for content delivery networks, disaster recovery sites, and companies seeking to serve Colombia's second-largest economic center.

Medellín: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong national connectivity, with developing international links.
Direct Cloud On-Ramps0 – as of September 2025Access via private network extension to hubs like Bogotá or Miami.
Power CostCOP 450.00–550.00/kWhFavorable pricing driven by a high percentage of renewable hydropower.
Disaster RiskHigh (5.3/10) – as of September 2025Primarily seismic and flood risks require careful site selection.
Tax IncentivesYesLaw 1715 offers significant tax benefits for renewable energy projects.
Sales Tax19% VAT – as of September 2025Standard national value-added tax applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As a major metropolitan area, Medellín supports a competitive carrier environment. At least one carrier-neutral facility provides interconnection options, with access to a range of national and regional providers as of September 2025.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Medellín data centers. Businesses connect to cloud providers via private network links to major hubs like Bogotá or Miami to access dedicated cloud services.

Internet Exchange Points (IXPs): Peering is typically handled through private connections or via the NAP Colombia exchange located in Bogotá. This centralized peering point is critical for optimizing traffic flow and reducing latency within the country.

Bare Metal: Bare metal server options are available, offering dedicated compute resources for performance-sensitive applications. Providers like Latitude.sh can deploy servers in the region.

Power Analysis

Average Cost Of Power: Industrial electricity rates are competitive for the region, estimated between COP 450.00 and COP 550.00/kWh as of September 2025. This cost structure is supported by Colombia's energy grid, where approximately 72% of power comes from renewable sources, primarily hydropower.

Power Grid Reliability: The national grid is generally reliable, especially in major economic zones like Medellín. Data centers are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the Medellín area serve the city's primary business and industrial districts, including El Poblado. This proximity supports low-latency services for the region's thriving finance, technology, and healthcare sectors.

Regional Market Reach: Medellín serves as an effective hub for reaching Colombia's population of over 50 million people. Its location provides a strategic point of presence for serving the broader Andean region, including neighboring countries.

Tax Advantage For Data Centers: Colombia's Law 1715 provides significant tax incentives for projects utilizing non-conventional renewable energy sources. This policy directly benefits data center operators and tenants by reducing the tax burden associated with building and running sustainable digital infrastructure.

Natural Disaster Risk

Medellín carries a High-risk rating, with an INFORM score of 5.3 out of 10 as of September 2025. This assessment reflects the country's overall exposure, but local risks require specific evaluation.

The primary natural hazards for the region include:

  • Earthquake: High risk (8.9/10) due to proximity to active fault lines.
  • River Flood: High risk (7.0/10) in low-lying areas, particularly during heavy rainy seasons.
  • Tropical Cyclone: Moderate risk (4.0/10), though the inland location mitigates the most severe impacts.
  • Drought: Low risk (2.8/10).

While national-level data shows high scores for Tsunami (8.1) and Coastal Flood (6.2), Medellín's inland location makes it immune to these specific threats.

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