Data Centers in Arequipa
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Arequipa, Peru – Strategic Hub for Southern Peru
Arequipa is an emerging data center market providing crucial geographic diversity for deployments within Peru. It serves as a strong secondary location to Lima, offering a resilient platform to reach southern Peru and neighboring countries, ensuring low-latency performance and high availability for regional operations.
Arequipa, Peru: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid for a secondary market, supporting reliable regional and national connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Lima; private connectivity is available. |
| Power Cost | PEN 0.40 – 0.55 /kWh | Peru's reliance on hydropower contributes to stable and competitive industrial power pricing. |
| Disaster Risk | Moderate (4.6/10) | Primarily driven by high seismic activity, requiring seismically-rated infrastructure. |
| Tax Incentives | Yes | DC-specific tax exemptions are available for national data center projects. |
| Sales Tax | 18% VAT | Standard national value-added tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Arequipa's connectivity landscape is characteristic of a developing secondary market, with a focus on providing reliable access to the national backbone.
Carrier Density & Carrier Neutrality: The market features access to over 5 national and regional carriers as of September 2025. Two carrier-neutral data centers provide interconnection options, ensuring redundancy for enterprise customers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Arequipa as of September 2025, with 0 cloud regions accessible locally. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through the primary hub in Lima via private network extensions.
Internet Exchange Points (IXPs): Public peering is primarily centralized at the PIT Peru IXP in Lima. Most peering in Arequipa is handled through private network interconnects or routed through facilities in the capital.
Bare Metal: Bare metal server options are available in the region, offering dedicated compute for performance-sensitive workloads. Providers like Latitude.sh offer services that can be deployed to serve the Peruvian market.
Power Analysis
Peru's power infrastructure is a key advantage, characterized by a high percentage of renewable energy and a dependable grid.
Average Cost Of Power: Industrial electricity rates typically range from PEN 0.40 to 0.55 /kWh as of September 2025. This competitive pricing is driven by a grid mix dominated by hydroelectric power (~55-60%), making it cost-effective for high-density deployments.
Power Grid Reliability: The national power grid is well-engineered, especially in major commercial centers like Arequipa. Data centers are supported by redundant power feeds from the national grid, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Arequipa provides a strategic location for business operations targeting the southern half of Peru and its international neighbors.
Proximity To Key Business Districts: Data centers in Arequipa are positioned to serve the city's significant mining, industrial, and agricultural sectors. Proximity reduces latency for critical operational technology and business applications.
Regional Market Reach: From Arequipa, businesses can effectively serve a population of several million across southern Peru. The city also acts as a logical gateway for digital services extending into Bolivia and northern Chile.
Tax Advantage For Data Centers: Peru offers significant tax incentives for qualifying data center investments. These advantages include exemptions from central, regional, and municipal taxes, which directly lowers the total cost of ownership for operators and their clients.
Natural Disaster Risk
Arequipa has a moderate disaster risk profile, with specific hazards that require purpose-built infrastructure for mitigation.
Based on the INFORM Risk Index, the region has a moderate overall risk score of 4.6 out of 10 as of September 2025. The primary natural hazards are:
- Earthquake: 9.6/10 (Very High)
- Tsunami: 9.1/10 (Very High - National Coastal Risk)
- River Flood: 6.5/10 (High)
- Drought: 4.4/10 (Medium)
While Arequipa is located inland and not directly exposed to tsunamis, the country's high national risk score means that network and logistics infrastructure along the coast could be affected. The most significant local threat is seismic activity, making data centers with high seismic ratings essential.