Data Centers in Quito
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Quito – Strategic Colocation Hub for Ecuador
Executive Summary
Quito serves as the primary digital infrastructure hub for Ecuador, offering businesses the ideal location to host applications and services for the nation's population. For companies targeting the Ecuadorian market, deploying in Quito is the most effective way to reduce latency and improve application performance for local end-users. This market provides a critical foothold for digital service delivery within the country.
Quito: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Connectivity is improving, serving as a primary national hub with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access nodes are in Bogotá, Colombia; private network extensions are available. |
| Power Cost | $0.09/kWh, as of 2021 | Competitively priced power, primarily from hydroelectric sources, benefits high-density deployments. |
| Disaster Risk | High (5.4/10), as of September 2025 | High seismic risk is the primary concern, requiring resilient data center design. |
| Tax Incentives | No | No specific incentives are offered for data center investment or operation. |
| Sales Tax | 15% VAT, as of September 2025 | A standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a key market in Ecuador, Quito offers access to a growing number of national and regional carriers. The presence of 3 colocation facilities, as of September 2025, ensures options for carrier-neutral interconnection.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Quito, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network providers with points of presence in nearby hubs such as Bogotá, Colombia. Private line and wave services can establish secure, high-performance links to these cloud regions.
Internet Exchange Points (IXPs): The primary internet exchange is IXP.EC (also known as NAP.EC), which has a presence in Quito. This IXP facilitates local traffic exchange, reducing latency for domestic users by keeping data within national borders.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute for performance-sensitive workloads. Providers such as Latitude.sh offer deployment options to serve the Ecuadorian market.
Power Analysis
Average Cost Of Power: The average price for industrial electricity in Ecuador is approximately $0.09/kWh, as of 2021. This competitive rate, driven by a grid dominated by hydroelectric power, makes running compute-intensive operations cost-effective.
Power Grid Reliability: Ecuador's power grid is largely supplied by hydroelectric sources (~65%). In the commercial districts of Quito, the grid is generally reliable for business operations. Data centers in the area are built with significant electrical redundancy, including multiple utility feeds, UPS systems, and on-site generators to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Quito are positioned to serve the city's primary business, government, and financial districts. This proximity is essential for providing low-latency services to the country's administrative and economic core.
Regional Market Reach: Quito is the central point for reaching Ecuador's population of over 18 million. Its infrastructure serves the capital's metropolitan area and provides the best point of presence for nationwide digital service delivery.
Tax Advantage For Data Centers: There are currently no specific tax incentives aimed at attracting data center development in Ecuador. Businesses should model their investments based on the country's standard corporate tax framework.
Natural Disaster Risk
Quito has a high-risk profile with an INFORM Risk score of 5.4 out of 10, as of September 2025. The risk assessment reflects significant exposure to specific natural hazards, which requires careful site selection and facility engineering to mitigate potential impacts on infrastructure uptime.
Key natural hazards for the region include:
- Earthquake: 9.5/10
- River Flood: 6.5/10
- Drought: 3.5/10
