Data Centers in Ciudad Del Este
1 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in Paraguay
Ciudad del Este – Cost-Effective Power in a Tri-Border Hub
Ciudad del Este serves as a strategic digital outpost for companies targeting the tri-border area of Paraguay, Brazil, and Argentina. Its primary advantage is exceptionally low-cost, renewable energy, making it a compelling choice for power-intensive workloads that can tolerate higher latency to major cloud hubs. This market is ideal for disaster recovery, content delivery, and commercial operations focused on this unique South American trade zone.
Ciudad del Este: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable but lacks the density of major Tier 1 markets. |
| 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 | Among the lowest in the region, sourced almost entirely from hydropower. |
| Disaster Risk | Low (3.0/10) – as of September 2025 | Minimal exposure to significant seismic or severe weather events. |
| Tax Incentives | No | Lacks specific data center incentives; relies on the Maquila program for assembly. |
| Sales Tax | 10% VAT – as of September 2025 | A standard value-added tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: At least one carrier-neutral data center facility exists in the market, providing access to a modest but growing number of local and regional carriers as of September 2025. The ecosystem is developing, with connectivity primarily focused on serving the immediate tri-border region.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Paraguay as of September 2025. Businesses require private network extensions or transit to major interconnection hubs like São Paulo, Brazil, to establish dedicated connections to hyperscale cloud providers.
Internet Exchange Points (IXPs): Peering is primarily handled through private arrangements or routed via the main exchange in Asunción. This setup serves local traffic needs but is less developed than in neighboring capitals.
Bare Metal: Bare metal server options are available, primarily through regional providers that can service the Paraguayan market. Providers like Latitude.sh offer compute solutions for workloads that require direct hardware access.
Power Analysis
Average Cost Of Power: The industrial electricity price in Ciudad del Este is exceptionally low at approximately $0.049/kWh as of September 2025. This cost advantage is a direct result of Paraguay's massive hydroelectric power generation capacity, primarily from the Itaipu Dam. This positions the market as a leader in low-cost, sustainable power in the Americas.
Power Grid Reliability: The power grid is supplied by one of the world's largest hydroelectric plants, providing a stable and abundant energy source. Infrastructure within the primary commercial zones is reliable and well-suited for supporting critical data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Ciudad del Este are strategically located to support the city's role as a major commercial and logistics hub. This proximity is critical for businesses involved in international trade, manufacturing, and retail that operate in the tri-border area.
Regional Market Reach: The city provides a unique point of presence for serving southern Brazil, northeastern Argentina, and all of Paraguay. Its location is effective for reaching a combined regional population that is underserved by major data center markets.
Tax Advantage For Data Centers: The primary financial advantage comes from the low operational costs driven by inexpensive power, not direct tax incentives. The standard 10% VAT is straightforward, and while specific data center credits are absent, the overall low-cost environment is the main draw.
Natural Disaster Risk
Paraguay has a low overall risk profile for natural disasters, with an INFORM Risk score of 3.0 out of 10 as of September 2025. The country is not exposed to catastrophic events like earthquakes, tsunamis, or tropical cyclones, which enhances its appeal for infrastructure stability.
Key environmental risks are primarily related to weather and hydrology:
- River Flood: The most significant natural hazard, particularly along the Paraná River basin.
- Epidemic: Poses a moderate risk to population and business continuity.
- Drought: A recurring issue that can impact agriculture and water resources, though less critical for the hydro-powered grid.
