Data Centers in Uruguay
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Uruguay – A Stable Hub for Southern Cone Connectivity
Uruguay offers a remarkably stable and secure location for digital infrastructure in South America. For businesses prioritizing uptime, low natural disaster risk, and a green power grid, Uruguay serves as an excellent strategic hub for reaching regional markets like Argentina and southern Brazil. The country's commitment to renewable energy and a favorable business climate reduces both operational and financial risk.
Uruguay: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity, though lacking direct cloud access points. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in São Paulo, Brazil and Buenos Aires, Argentina. |
| Power Cost | Est. $0.14 - $0.19 USD/kWh | Primarily powered by a 98% renewable grid, ensuring stable pricing. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | Exceptionally low exposure to significant seismic or cyclonic events. |
| Tax Incentives | Yes | Foreign investors can access credit on the same terms as nationals. |
| Sales Tax | 22% VAT – as of September 2025 | Standard value-added tax applied to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Uruguay has a growing telecommunications market with several national and regional carriers present, as of September 2025. The primary data centers in Montevideo offer carrier-neutral environments, providing interconnection flexibility.
Direct Cloud On-Ramps: There are no public cloud on-ramps located within Uruguay, as of September 2025. Businesses require private network extensions (PNI) or high-capacity wavelength services to connect to cloud provider fabrics in nearby hubs like São Paulo or Buenos Aires.
Internet Exchange Points (IXPs): The primary exchange is IXP.uy (PIT Uruguay) in Montevideo. This IXP is critical for localizing traffic and improving latency between domestic networks.
Bare Metal: Bare metal server options are available, primarily from providers focused on Latin American markets. Providers such as Latitude.sh offer dedicated server solutions from facilities within Uruguay.
Power Analysis
Average Cost Of Power: Industrial electricity costs are estimated to be between $0.14 and $0.19 USD/kWh, as of September 2025. Uruguay's grid is powered by approximately 98% renewable sources, primarily hydroelectric and wind, which contributes to long-term price stability and helps meet corporate sustainability goals.
Power Grid Reliability: The national power grid is reliable, especially in the capital region of Montevideo where data centers are concentrated. The infrastructure is well-maintained, providing consistent power necessary for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Uruguay are located in or near Montevideo, the nation's capital and economic center. This proximity provides low-latency connectivity for the financial, logistics, and technology sectors operating there.
Regional Market Reach: Uruguay is strategically positioned to serve as a disaster recovery or secondary site for businesses in the Southern Cone. It offers a stable alternative for workloads targeting users in Argentina and southern Brazil.
Tax Advantage For Data Centers: Uruguay provides a welcoming environment for foreign investment. Foreign companies can access investment credit on the same terms as domestic firms, which lowers the barrier to entry and simplifies financing for infrastructure projects.
Natural Disaster Risk
Uruguay has a low overall natural disaster risk profile, with an INFORM Risk score of 2.7 out of 10, as of September 2025. This stability is a key advantage for data center operations requiring maximum uptime and minimal environmental threats.
The main environmental hazards to consider are moderate risks from river flooding, coastal flooding, and drought. The country has negligible exposure to earthquakes, tsunamis, or tropical cyclones, making it one of the safest locations in the Americas for critical infrastructure.
