Data Centers in Arequipa
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Arequipa – Reliable Industrial Continuity for Southern Peru
Executive Summary
Arequipa serves as the premier geographic alternative to Lima, providing essential redundancy for enterprises requiring a southern footprint. Its strategic position makes it the primary choice for low-latency connectivity to the mining and manufacturing sectors that drive the regional economy. This market is vital for organizations that prioritize operational continuity and resilient access to southern South American markets.
Arequipa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional links with improving fiber density. |
| Direct Cloud On-Ramps | 0 – as of January 2026 | Lima is the nearest major hub for on-ramps. |
| Power Cost | $0.10–$0.12/kWh, as of January 2026 | Competitive rates supported by hydroelectric and gas. |
| Disaster Risk | Moderate (4.6/10), as of January 2026 | Seismic activity is the primary factor to manage. |
| Tax Incentives | Yes | National exemptions apply to data center infrastructure. |
| Sales Tax | 18% VAT, as of January 2026 | Standard national rate for colocation services. |
Network & Connectivity Ecosystem
Arequipa operates as the connectivity gateway for southern Peru, offering a reliable path for industrial automation and remote operations that need to bypass the concentration of infrastructure in the capital.
Carrier Density & Carrier Neutrality: Carrier count: over 10, as of January 2026. The market provides a mix of national incumbents and regional fiber providers, ensuring competitive options for diverse path requirements and protection.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of January 2026. There are currently no direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure physically located in Arequipa. Enterprises typically reach these platforms via private layer 2 extensions to Lima, which serves as the primary gateway for the country.
Internet Exchange Points (IXPs): PIT Peru operates the primary local exchange as of January 2026, allowing for localized peering that reduces the need to backhaul traffic to Lima.
Bare Metal: High-performance compute requirements are met by specialized providers like Latitude.sh, offering rapid deployment for localized workloads as of January 2026.
Power Analysis
Arequipa benefits from Peru’s diverse energy matrix, which balances sustainable generation with industrial reliability to support continuous operations.
Average Cost Of Power: Industrial electricity rates typically range between $0.10–$0.12/kWh, as of January 2026. This pricing remains attractive for regional deployments compared to other South American markets. The generation mix consists of approximately 55–60% hydroelectric power and 38–42% natural gas, providing a stable supply for high-availability facilities.
Power Grid Reliability: The local grid is supported by a well-engineered, multi-substation framework designed to service heavy industrial demand. This infrastructure ensures that data centers maintain consistent uptime even during peak load periods.
Market Access, Business & Tax Climate
As the commercial engine of southern Peru, Arequipa is a logical site for edge deployments and secondary disaster recovery sites.
Proximity To Key Business Districts: Data centers are positioned to serve the manufacturing and mining sectors, where low-latency access to telemetry and ERP systems is vital for operational efficiency.
Regional Market Reach: From its southern position, Arequipa provides a footprint that can effectively reach populations across southern Peru and into northern Chile and Bolivia.
Tax Advantage For Data Centers: National policy provides financial relief through specific tax exemptions for data center developments. This incentive reduces the total cost of ownership by exempting projects from various central and municipal taxes.
Natural Disaster Risk
The overall risk profile for Arequipa is Moderate (4.6/10) as of January 2026. While the region is geologically active, modern facility construction standards are purpose-built to manage these specific hazards.
- Earthquake (9.6): The primary risk factor; facility designs must adhere to strict seismic standards as of January 2026.
- Tsunami (9.1): This is a regional and indirect risk; while Arequipa is high altitude and inland, coastal landing stations for subsea cables are exposed.
- River Flood (6.5): Periodic heavy rains can impact local drainage systems as of January 2026.
- Epidemic (5.6): In line with regional health exposure levels as of January 2026.
- Drought (4.4): Managed through regional water storage and management systems.
Other hazards such as tropical cyclones are not material factors for this geography as of January 2026.
