Data Centers in Paipa
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Paipa, Colombia – Emerging Edge & Resiliency Hub
Paipa, Colombia represents an emerging edge data center market, ideal for organizations requiring low-latency compute for industrial, agricultural, and tourism sectors within the Boyacá department. Deploying infrastructure here provides a strategic resiliency option outside the primary Bogotá hub, ensuring business continuity while leveraging a power grid with a high percentage of renewable energy.
Paipa, Colombia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, though international links are routed through primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Bogotá; private network extensions are available. |
| Power Cost | COP $450.00–$550.00/kWh | Industrial power is affordable, supported by a grid rich in renewable sources. |
| Disaster Risk | High (5.3/10) – as of September 2025 | Primarily driven by seismic and flood risks; requires site-specific mitigation. |
| 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 applies to services and equipment. |
Network & Connectivity Ecosystem
The digital ecosystem in Paipa is developing, centered on serving regional needs with connectivity backhauled through the national capital, Bogotá.
Carrier Density & Carrier Neutrality Carrier availability is modest, with at least one carrier-neutral facility providing access to national telecom providers as of September 2025. This allows for foundational network redundancy.
Direct Cloud On-Ramps There are no direct cloud on-ramps located within Paipa as of September 2025. Secure, private connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are established via network extensions to data centers in Bogotá.
Internet Exchange Points (IXPs) Paipa does not host a major public Internet Exchange Point. Peering is typically handled privately or routed through the NAP Colombia exchange in Bogotá to optimize traffic flow within the country.
Bare Metal Bare metal server options are available, typically through providers offering services out of Bogotá that can serve the Paipa region. Providers like Latitude.sh can deliver dedicated compute resources for latency-sensitive workloads.
Power Analysis
Colombia's national power strategy heavily influences the local Paipa market, emphasizing renewable sources and stability.
Average Cost Of Power Industrial electricity costs are estimated to be between COP $450.00 and $550.00 per kWh as of September 2025. This competitive pricing, combined with a green energy mix, offers an attractive operational cost structure. The grid is approximately 72% renewable, dominated by hydropower.
Power Grid Reliability The power grid serving the region is engineered to support local industrial and commercial activities. For critical data center operations, facilities are equipped with standard N+1 or 2N redundant UPS systems and backup generators to ensure continuous uptime.
Market Access, Business & Tax Climate
Paipa provides a unique entry point into the Boyacá department, offering strategic advantages for specific industries.
Proximity To Key Business Districts Data centers in Paipa are positioned to serve the region's significant tourism, agriculture, and light industrial sectors. This proximity enables low-latency applications for local operations and provides a robust disaster recovery location away from the capital.
Regional Market Reach From Paipa, digital services can effectively reach the entire Boyacá department and surrounding regions. It serves as a logical node for content delivery and compute for a population outside the dense Bogotá metropolitan area.
Tax Advantage For Data Centers Colombia provides meaningful tax incentives under Law 1715 for projects utilizing renewable energy. These benefits can significantly reduce the tax burden for data center operators over the long term, making investments more financially viable.
Natural Disaster Risk
Paipa has a High overall disaster risk profile, with a score of 5.3 out of 10, as of September 2025. Site selection and infrastructure design must account for specific, localized threats.
The primary natural hazards driving this risk rating include:
- Earthquake: High risk (8.9/10)
- Tsunami: High national risk (8.1/10), though the indirect risk to inland Paipa is minimal.
- River Flood: High risk (7.0/10)
- Coastal Flood: Moderate national risk (6.2/10), though not a direct threat to this inland location.
While the country faces notable coastal risks, the key considerations for facilities in Paipa are seismic activity and potential river flooding, requiring adherence to stringent building codes and site-specific flood mitigation strategies.
