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Data Centers in Arequipa

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Arequipa – Resilient Hub for Southern Peru

Executive Summary

Arequipa is Peru's second-largest city and a strategic secondary data center market. It provides essential geographic diversity for businesses looking to implement disaster recovery solutions outside of the primary hub in Lima. For organizations in mining, logistics, and regional commerce, Arequipa offers a reliable base to serve southern Peru with lower latency.

Arequipa: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBA secondary market with solid national connectivity but limited international routes.
Direct Cloud On-Ramps0 – as of September 2025Cloud access is available via the primary hub in Lima through private network extensions.
Power CostPEN 0.40 – 0.55/kWhBased on a national grid with a high percentage of hydroelectric power.
Disaster RiskModerate (4.6/10) – as of September 2025High seismic risk is the primary concern, requiring specific facility engineering.
Tax IncentivesYesDC-specific tax exemptions are available for national data centers.
Sales Tax18% VAT – as of September 2025Standard national value-added tax rate applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As a growing secondary market, Arequipa provides access to all major national and some regional carriers. The two data centers in the market offer carrier-neutral environments, allowing for resilient network designs.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Arequipa as of September 2025. Businesses connect to cloud providers by extending their networks to the primary interconnection hub in Lima, where major cloud regions are accessible.

Internet Exchange Points (IXPs): Peering is primarily handled through the national exchange point in Lima, PIT Peru. Traffic is backhauled to the capital for efficient content delivery and network optimization.

Bare Metal: Bare metal server availability is present in Arequipa. Providers like Latitude.sh offer dedicated server solutions, enabling companies to deploy infrastructure without the capital expense of owning hardware.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Arequipa are estimated between PEN 0.40 and PEN 0.55 per kWh, as of September 2025. Peru's power grid benefits from a significant share of hydropower (around 55-60%), which contributes to cost stability.

Power Grid Reliability: The power grid supporting Arequipa's commercial and industrial zones is reliable for standard business operations. Data centers in the region are engineered with full UPS and generator-backed power to ensure uptime during any potential utility disruptions.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Arequipa is a vital hub for southern Peru's mining, agriculture, and manufacturing industries. Data centers here provide low-latency connectivity to these core economic sectors, supporting critical operations and supply chains.

Regional Market Reach: The market effectively serves southern Peru and acts as a digital gateway for trade with neighboring Bolivia and northern Chile. Its strategic location supports logistics and distribution networks across the Andean region.

Tax Advantage For Data Centers: Peru offers a significant tax incentive for data center investment. Approved national data center projects can receive exemptions from central, regional, and municipal taxes, which substantially reduces the long-term cost of operation.

Natural Disaster Risk

Arequipa has a moderate overall disaster risk profile, with a score of 4.6 out of 10, as of September 2025. The risk profile is dominated by significant geological and weather-related threats that demand purpose-built infrastructure for mitigation.

Key natural hazards include:

  • Earthquake: The region has an extremely high seismic risk score (9.6/10). Data centers must be constructed to modern seismic codes to withstand significant ground-shaking events.
  • Tsunami: While Arequipa itself is inland, its coastal access and connectivity points face a very high tsunami risk (9.1/10), which can impact subsea cable infrastructure.
  • River Flood: The area has a notable risk of river flooding (6.5/10), requiring careful site selection away from floodplains.
  • Drought: Moderate drought risk (4.4/10) can impact water resources, affecting cooling systems if not properly managed.
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