Data Centers in Arequipa
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Arequipa – Peru's Southern Digital Anchor
Executive Summary
Arequipa is the primary digital infrastructure hub for southern Peru, offering a crucial alternative to the capital, Lima. It is an ideal market for organizations requiring low-latency access to the region's significant mining, industrial, and commercial sectors. Deploying in Arequipa diversifies geographic risk and improves application performance for a key economic zone.
Arequipa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A developing market with solid connectivity to Lima and neighboring countries. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud hubs are in Lima; private network extensions are available. |
| Power Cost | PEN 0.45 – 0.60/kWh | Sourced from a grid dominated by cost-effective hydroelectric power. |
| Disaster Risk | Moderate (4.6/10) | Significant seismic risk requires facilities engineered to high structural standards. |
| Tax Incentives | Yes | DC-specific exemptions cover central, regional, and municipal taxes. |
| Sales Tax | 18% VAT | Standard national value-added tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Arequipa provides a solid foundation for digital operations in southern Peru, though the ecosystem is more concentrated than in Lima.
Carrier Density & Carrier Neutrality The market has a growing number of national and regional providers, with at least two carrier-neutral data centers available as of September 2025. While carrier density is lower than in Lima, key national backbones are present, ensuring reliable connectivity.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Arequipa as of September 2025. All major public clouds are accessed via the primary hub in Lima. Businesses can establish private, dedicated connections to cloud providers through carrier partners.
Internet Exchange Points (IXPs) Public peering is primarily handled through the main national exchange points located in Lima. Most network interconnection in Arequipa occurs through private peering arrangements within local data centers.
Bare Metal Bare metal server options are available in the Peruvian market, primarily served out of Lima. Providers like Latitude.sh offer compute solutions that can serve the Arequipa region with good latency.
Power Analysis
Peru's power infrastructure is characterized by a high percentage of renewable energy, which contributes to stable and predictable pricing.
Average Cost Of Power Industrial power costs in the Arequipa region typically range from PEN 0.45 to PEN 0.60 per kWh, as of September 2025. The country's reliance on hydroelectric generation (over 55% of the mix) helps insulate energy prices from global fossil fuel volatility.
Power Grid Reliability The power grid serving Arequipa is generally stable for commercial use. For high-availability data center operations, facilities are engineered with N+1 or 2N UPS systems and on-site diesel generators to protect against any grid instability.
Market Access, Business & Tax Climate
Arequipa serves as a strategic center for commerce and provides compelling financial incentives for technology investment.
Proximity To Key Business Districts Data centers in Arequipa are positioned to serve Peru's second-largest economy, with strong ties to the mining, agriculture, and textile industries. This proximity provides low-latency performance for critical industrial and enterprise applications.
Regional Market Reach From Arequipa, businesses can effectively serve the entire southern half of Peru. The city also acts as a logical digital gateway for cross-border traffic with Bolivia and northern Chile.
Tax Advantage For Data Centers Peru offers a significant tax incentive specifically for the development of a national data center. This program provides an exemption from central, regional, and municipal taxes, which substantially lowers the long-term cost of operations.
Natural Disaster Risk
Arequipa's overall disaster risk profile is rated as Medium (4.6/10), driven almost entirely by its location in a seismically active zone.
The INFORM Risk model, as of September 2025, identifies the following key natural hazards for Peru, which influence facility design and site selection in Arequipa:
- Earthquake (9.6/10): The most significant risk. Data centers must be built to the highest seismic-resistance standards.
- Tsunami (9.1/10): A major national risk for coastal infrastructure. While Arequipa is inland, this can affect the subsea cables and fiber routes that provide international connectivity.
- River Flood (6.5/10): A moderate risk in certain areas, requiring careful site selection away from floodplains.
- Drought (4.4/10): A moderate risk that can impact hydroelectric power generation, though the grid has other resources to compensate.
