Data Centers in Uruguay
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Explore Markets in Uruguay
Uruguay – Sustainable Stability for the Southern Cone
Executive Summary
Uruguay is the premier choice for organizations requiring extreme political and geographic stability in South America. Its near-total reliance on renewable energy provides a future-proof foundation for sustainability-conscious enterprises targeting the regional markets of Argentina and Brazil.
Uruguay: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea links and high fiber penetration. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hub is Buenos Aires, approximately 200km away. |
| Power Cost | $0.14–$0.18/kWh – as of September 2025 | Higher costs offset by a 98% renewable mix. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | One of the safest profiles in South America. |
| Tax Incentives | Yes | Foreign investors access credit on equal terms. |
| Sales Tax | 22% VAT – as of September 2025 | Standard rate for digital and industrial services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market features over 10 carriers as of September 2025. While the state-owned incumbent remains a significant player, a healthy variety of local and international providers ensures reliable path diversity for enterprise workloads.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps physically located in the country as of September 2025. Local deployments typically access AWS, Google Cloud (GCP), and Microsoft Azure via private transport or high-speed circuits to the nearest regional hub in Buenos Aires.
Internet Exchange Points (IXPs): The primary exchange is IX.uy, located in Montevideo. It serves as the central point for domestic peering, significantly reducing local latency for retail and enterprise traffic as of September 2025.
Bare Metal: High-performance compute is available through regional providers like Latitude.sh. This allows for rapid deployment of dedicated hardware without the friction of traditional colocation contracts.
Power Analysis
Average Cost Of Power: Industrial electricity ranges between $0.14 and $0.18/kWh as of September 2025. This pricing supports a grid that is approximately 98% renewable, primarily driven by hydro and wind power, allowing firms to meet aggressive carbon-reduction targets.
Power Grid Reliability: The national grid is well-engineered and maintains high reliability standards. Data center corridors in the Montevideo area benefit from a redundant distribution network and multi-substation support common for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Infrastructure is centrally located near Montevideo, specifically serving the World Trade Center Free Zone and Aguada Park. This proximity provides low-latency access for the financial services and software development sectors.
Regional Market Reach: Uruguay serves as a strategic gateway to the Southern Cone. It provides a stable base for reaching the massive populations of Argentina and Brazil while bypassing the economic volatility often associated with larger neighbors.
Tax Advantage For Data Centers: The regulatory framework is built for investment parity. Foreign companies can access the same investment credit terms as national firms, which simplifies financial modeling for international infrastructure projects.
Natural Disaster Risk
Uruguay maintains a Low risk profile with a score of 2.7 as of September 2025. The country is naturally shielded from the seismic and tropical hazards that impact other South American markets.
- Epidemic: 6.2 (as of September 2025)
- River Flood: 3.9 (as of September 2025)
- Coastal Flood: 3.8 (Indirect/Regional risk as of September 2025)
- Drought: 3.4 (as of September 2025)
The risk from earthquakes and tropical cyclones is nearly non-existent, making the region a preferred site for disaster recovery and long-term data residency. Other hazards are considered minor or not listed.
