Data Centers in Paipa
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Paipa, Colombia – A Strategic Secondary Market
Executive Summary
Paipa, Colombia serves as a strategic secondary market for organizations requiring a disaster recovery site or a specific regional presence outside the primary Bogotá hub. The market's access to a power grid dominated by renewable energy ensures operational resilience and supports sustainability goals for critical infrastructure. This positions Paipa as a viable option for deployments that prioritize uptime and green energy credentials.
Paipa, Colombia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but lacks the density of a primary hub like Bogotá. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to Bogotá. Private connectivity options are available. |
| Power Cost | $0.11 – $0.16/kWh | Competitive rates leveraging a grid with over 70% renewable energy from hydropower. |
| Disaster Risk | High (5.3/10) | High overall national risk profile, primarily driven by seismic and flood hazards. |
| Tax Incentives | Yes | National renewable-energy incentives apply, offering benefits for sustainable data center projects. |
| Sales Tax | 19% VAT – as of September 2025 | Standard national Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier presence in Paipa is limited compared to Bogotá, with fewer than 10 national providers offering services as of September 2025. True carrier-neutral facilities are not prevalent, and connectivity is typically arranged through major Colombian telecommunication companies.
Direct Cloud On-Ramps: Direct cloud on-ramps are not available within Paipa as of September 2025. Access to hyperscale clouds like AWS, Google Cloud (GCP), and Microsoft Azure requires dedicated network connections to the primary interconnection hub in Bogotá.
Internet Exchange Points (IXPs): Public peering is centralized at NAP Colombia in Bogotá. Connectivity in Paipa relies on private peering arrangements or paid IP transit from national carriers, which routes traffic through the capital.
Bare Metal: Bare metal solutions are available, typically provisioned from data centers in Bogotá to serve the broader region. Providers such as Latitude.sh can deliver dedicated server infrastructure for customers operating in Paipa.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the region range from $0.11 – $0.16/kWh, as of September 2025. Colombia's power mix is approximately 72% renewable, sourced mostly from hydropower. This cost structure, combined with a high percentage of renewables, offers predictable and sustainable energy spending.
Power Grid Reliability: The national power grid is reliable, with significant generation capacity from its extensive hydropower resources. Infrastructure supporting key commercial areas is well-engineered, though last-mile delivery can vary in secondary markets like Paipa.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Paipa provides proximity to the administrative and commercial activities of the Boyacá department, including its capital, Tunja. It serves as a secondary operational site for businesses in the region focused on agriculture, tourism, and local government services.
Regional Market Reach: The market effectively serves the central Andean region of Colombia. It offers a low-latency connection point for users and operations outside of the country's major metropolitan centers.
Tax Advantage For Data Centers: Colombia provides significant tax incentives for projects utilizing renewable energy sources, which directly benefits data center operators. These national programs, established under Law 1715, can reduce the overall tax burden and improve the total cost of ownership for qualifying facilities.
Natural Disaster Risk
Paipa is in a region with a High overall disaster risk profile, holding an INFORM score of 5.3 out of 10, as of September 2025. While its inland location protects it from direct coastal threats, key natural hazards require robust mitigation strategies.
The most significant risks for infrastructure in the area include:
- Earthquake Risk: 8.9/10
- River Flood Risk: 7.0/10
- Tropical Cyclone Risk: 4.0/10
