Data Centers in Asunción
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Asunción – Resilient Hydropower for Digital Operations
Asunción is emerging as a niche market for businesses requiring highly resilient and low-cost power for their digital infrastructure. The market is particularly well-suited for companies targeting the growing Paraguayan economy and seeking a stable, low-risk operational base in South America. Its access to nearly 100% renewable energy offers a compelling advantage for sustainability-focused deployments.
Asunción: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, though direct international links are developing. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in São Paulo or Buenos Aires; private connectivity is an option. |
| Power Cost | $0.049/kWh – as of September 2025 | Sourced almost entirely from reliable, low-cost hydropower. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are river flooding and epidemic events; seismic risk is negligible. |
| Tax Incentives | No | No specific incentives for data centers. See Maquila program for broader scope. |
| Sales Tax | 10% VAT – as of September 2025 | A standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Asunción's connectivity is centered on serving the national market, with growing links to regional hubs. There are 3 data centers in the market as of September 2025.
Carrier Density & Carrier Neutrality: Carrier density is developing. The market provides access to key national and regional providers, with major facilities offering carrier-neutral interconnection options.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Asunción as of September 2025. Businesses require private network extensions via carriers to connect to cloud provider PoPs in São Paulo, Brazil, or Buenos Aires, Argentina.
Internet Exchange Points (IXPs): The primary exchange is the NAP Paraguay (IXP.py), which facilitates most of the country's domestic traffic exchange, lowering latency for local users.
Bare Metal: Bare metal server availability is present in Asunción. Providers like Latitude.sh offer dedicated server solutions for workloads requiring direct hardware access.
Power Analysis
Paraguay's power infrastructure is a key strategic advantage, defined by its massive hydropower resources.
Average Cost Of Power: Industrial power costs are exceptionally low, averaging $0.049/kWh as of September 2025. This cost structure provides significant operational savings for high-density computing. The grid is sourced almost entirely from renewable hydropower.
Power Grid Reliability: The power grid is generally reliable, backed by the massive Itaipu and Yacyretá hydroelectric dams, which provide consistent and abundant energy. Infrastructure within the capital is well-maintained to support commercial operations.
Market Access, Business & Tax Climate
Asunción serves as the undisputed economic and political center of Paraguay.
Proximity To Key Business Districts: Data centers in the Asunción area are located to serve the city's central business district, financial institutions, and government offices, ensuring low-latency access for critical local applications.
Regional Market Reach: While primarily serving Paraguay's population of over 7 million, Asunción acts as a strategic point for logistics and services targeting the Mercosur trade bloc.
Tax Advantage For Data Centers: There are no specific tax incentives for data center development. The standard tax environment applies, including a 10% VAT on services.
Natural Disaster Risk
Asunción has a low overall risk profile for natural disasters, with an INFORM Risk score of 3 out of 10 as of September 2025. The primary environmental hazards are specific and manageable.
Key risks include:
- River Flood: The most significant natural hazard, driven by the Paraguay River.
- Epidemic: The region has a moderate risk of widespread disease events.
- Drought: Periodic drought conditions can impact agriculture and water resources.
- Earthquake: Seismic risk is negligible.
