Data Centers in Asunción
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Asunción – Resilient Hydropower for Digital Operations
Asunción is an emerging market well-suited for organizations requiring highly resilient and low-cost power for their digital infrastructure. Its access to nearly 100% renewable hydropower makes it a strategic choice for businesses focused on sustainability and predictable operational expenses, providing a stable platform for serving the core South American markets.
Asunción: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, with opportunities for growth in international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in São Paulo or Santiago; private extensions are available. |
| Power Cost | $0.049/kWh – as of September 2025 | Extremely competitive pricing driven by an abundance of renewable hydropower. |
| Disaster Risk | Low (3/10) – as of September 2025 | Minimal exposure to significant seismic, cyclonic, or coastal flooding events. |
| Tax Incentives | No | No specific data center incentives are currently offered under the Maquila program. |
| 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 regional providers, offering reliable access to neighboring markets. The ecosystem is developing, with a focus on improving latency to major South American hubs.
Carrier Density & Carrier Neutrality: The market is served by over a dozen national and regional carriers as of September 2025. There are 3 data centers in the market, providing options for carrier-neutral colocation and interconnection.
Direct Cloud On-Ramps: Asunción has 0 direct cloud on-ramps and relies on connectivity to 0 cloud regions as of September 2025. The primary hubs for cloud access are located in São Paulo, Brazil, and Santiago, Chile. Secure, private connections can be established via Layer 2 services and dedicated wavelengths.
Internet Exchange Points (IXPs): The primary exchange is the Paraguay Network Information Center (LACNIC) IXP, which facilitates local traffic exchange and improves domestic network performance. Most international peering occurs privately or through transit providers connecting to major IXPs in Brazil.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for workloads that require high performance and security. Providers such as Latitude.sh offer services catering to the Latin American market from nearby locations.
Power Analysis
Paraguay's power infrastructure is a key advantage, defined by its low cost and high sustainability. The national grid is overwhelmingly supplied by the Itaipu Dam, one of the world's largest hydroelectric facilities.
Average Cost Of Power: Industrial power costs average $0.05/kWh as of September 2025. This extremely competitive rate provides a significant operational cost advantage for high-density computing and large-scale data center deployments.
Power Grid Reliability: The power grid is known for its stability, backed by massive hydroelectric generation capacity. Major data center facilities in Asunción are supported by redundant power feeds and substation architecture to ensure high levels of uptime.
Market Access, Business & Tax Climate
Asunción provides a central location for reaching key markets in the Southern Cone (MERCOSUR) trading bloc.
Proximity To Key Business Districts: Data centers in and around Asunción are located to serve the city's central business district, financial institutions, and growing technology sector. This proximity ensures low-latency connectivity for local enterprises.
Regional Market Reach: From Asunción, businesses can effectively serve a population of over 250 million across Paraguay, northern Argentina, southern Brazil, and Bolivia. Its location is strategic for logistics and digital service delivery within this corridor.
Tax Advantage For Data Centers: While Paraguay's Maquila program offers incentives for manufacturing and assembly, there are currently no specific tax advantages tailored for data center operations. The primary financial benefit remains the exceptionally low and stable cost of electricity.
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 city's inland location shields it from many of the hazards affecting coastal South American nations.
Key risk factors for consideration include:
- River Flood: The most significant natural hazard due to the city's proximity to the Paraguay River.
- Epidemic: A moderate risk factor common to dense urban centers.
- Drought: A periodic concern that can impact agriculture and water levels, though the hydroelectric reservoirs provide a substantial buffer.
- Earthquake: Risk is minimal, with very low seismic activity in the region.
