According to Arizton research, the Argentina data center colocation market size was valued at USD 76 million in 2024 and is expected to reach USD 156 million by 2030, growing at a CAGR of 12.73% during the forecast period
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Report Summary:
MARKET SIZE - COLOCATION REVENUE: USD 156 Million (2030)
CAGR - COLOCATION REVENUE: 12.73% (2024-2030)
MARKET SIZE - UTILIZED WHITE FLOOR AREA: 499.5 thousand sq. feet (2030)
MARKET SIZE - UTILIZED RACKS: 13.17 thousand units (2030)
MARKET SIZE - UTILIZED IT POWER CAPACITY: 72 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
Argentina Colocation Growth Accelerates: Buenos Aires Adds 2 New Facilities to Its 17 Existing Sites
Argentina colocation data center market is on a steady growth path, with 22 operational facilities today and more in the pipeline as both local and global players ramp up investments. Buenos Aires remains the country’s data center hub, home to 17 existing and 2 upcoming sites, supported by strong connectivity, enterprise demand, and a skilled IT workforce. Key operators such as Cirion Technologies, Claro, IPLAN, NextStream, and EdgeConneX are driving expansion, with Cirion leading the market through its 17% share of IT power capacity and a clear focus on sustainability and high-density infrastructure. Occupancy rates, already at 81% in 2024, are expected to climb to 92% by 2030, propelled by cloud adoption, AI integration, and rising enterprise storage needs. Looking ahead, demand will be led by the cloud and IT sector, with AI/ML workloads, edge computing, and real-time analytics fueling the need for scalable, high-density colocation infrastructure across Argentina.
Argentina Cost Edge in Energy Powers Its Data Center Market Toward 72 MW by 2030
Argentina data center market is witnessing strong growth, with utilized IT power capacity expected to reach 72 MW by 2030. In 2024, Buenos Aires dominated with the largest share of installed and utilized capacity, supported by strong connectivity and high efficiency rates of over 80%. Other regions, including Córdoba and Mendoza, are also contributing to growth, though on a smaller scale. A major advantage for Argentina is its low industrial electricity costs ($0.09–$0.16 per kWh), which are lower than in Chile, Mexico, and Brazil. This cost efficiency significantly reduces operating expenses for large-scale computing and cooling systems, positioning Argentina as a competitive and attractive hub for colocation and cloud investments in Latin America.
Argentina Positions Itself as a Cost-Efficient Hub for AI Development
Argentina is steadily building its position in the artificial intelligence (AI) space, supported by government initiatives, infrastructure upgrades, and policies that encourage investment. The country has laid out a national AI strategy that balances innovation with ethics and sustainability, while also removing regulatory barriers to attract global investment. With competitive advantages such as low energy costs, available land, and a skilled workforce, Argentina is positioning itself as a cost-efficient hub for AI development. These factors, coupled with rising enterprise adoption and public sector alignment on transparency and accountability, are creating a strong foundation for Argentina to scale as one of Latin America’s leading AI-driven economies.
Argentina 5G Boom Paves the Way for Edge and Cloud Growth
Argentina 5G expansion is transforming the country’s digital ecosystem by closing the gap between data generation and consumption, especially in remote areas where reliable connectivity has long been a challenge. Telecom operators, including Claro, Personal, and Movistar, are actively rolling out networks, with Personal becoming the first to launch standalone 5G technology. Global partners such as Nokia are also strengthening the ecosystem by supporting infrastructure deployments.
This rapid push toward 5G is not only enhancing consumer and enterprise connectivity but is also creating new demand for edge services. As a result, leading data center operators like EdgeConneX and EdgeUno are scaling their networks to support low latency applications, real-time analytics, and the growing adoption of AI-driven workloads across Argentina.
Vendor Landscape
Existing Colocation Operators
- Claro
- G2K
- NextStream
- IPLAN
- Telecentro Empresas
- Cirion Technologies
- EMPATEL SAPEM
- EdgeConneX
- Others
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What Key Findings Will Our Research Analysis Reveal?
- How much MW of IT power capacity is likely to be utilized in Argentina by 2030?
- What is the count of existing and upcoming colocation data center facilities in Argentina?
- What factors are driving the Argentina data center colocation market?
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