COUNTRY FOCUS : ARGENTINA
Arizton Argentina data center market report – key highlights
• In the Argentina data center market , Buenos Aires and Cordoba are the hubs for data center development , while other cities are also expected to grow during the forecast period .
• Argentina provides enticing tax incentives and a businessfriendly atmosphere through the ‘ Knowledge Economy Law ’ aiming to attract operators for facility development .
• The Argentina data center market stands out as one of the wellconnected nations in Latin America , boasting seven operational submarine cables , with an additional one currently under construction . Notably , Google recently contributed to this robust
• submarine network by introducing Firmina , a new cable slated for launch in 2024 . This submarine cable will have landing points in Brazil , the United States and Uruguay , further enhancing regional connectivity .
• In July 2023 , the government approved a total renewable energy capacity of 633.7 megawatts ( MW ) through its latest procurement initiative . This includes the green light for 44 upcoming solar farm projects equipped with photovoltaic ( PV ) capacity .
• Argentina has initiated the “ RenovAr ” program to produce 20 % of its electricity from renewable sources by 2025 . This deliberate step supports their sustainability objectives and contributes positively to the environment and the community .
Argentina data center market – trends and drivers
The report specifically references AWS as benefiting from an export tax exemption and , as part of the freetrade zone , is exempt from national and provincial taxes on energy consumption .
• In May 2022 , Telecom initiated its services in Mendoza , Argentina , by introducing fiber optic connections to residences as a component of the City of Mendoza ’ s Connectivity Plan . The investment made in this infrastructure surpasses $ 380 million .
• In January 2023 , ST Engineering iDirect , a major satellite communications company , gave its IoT solution to ARSAT , Argentina ’ s national telecom provider . ARSAT ’ s job is to provide affordable internet access to connect towns and cities across the country .
• Telecom Argentina has integrated Google Cloud into its hybrid multi-cloud strategy as part of its overarching cloud-first strategy .
In Argentina , there is a noticeable surge in the adoption of cloud services by both organizations and the government .
Telecom Argentina , a comprehensive provider of connectivity services , entertainment and technological solutions , has strategically incorporated Google Cloud into its hybrid multi-cloud approach – aligning with its overarching cloud-first strategy .
The report says that over the next few years , maximum data center demand in Argentina will come from the cloud segment , followed by IT and telecom , government , e-commerce , BFSI , healthcare and education sectors . p
Vendor Landscape
• The Argentina data center market has a presence of several global support infrastructure providers such as Caterpillar , Eaton , Cummins , ABB , Legrand and others .
• Several global IT infrastructure providers , such as Cisco Systems , Arista Networks , Lenovo , NetApp and others have a strong presence in the Argentina data center market .
• Some key investors in the Argentina data center market are Lumen Technologies , Telecom Argentina , Nabiax and EdgeConnex in 2023 .
• Datacenter firms in Argentina are partnering with construction contractors to enhance efficiency and meet the evolving requirements of these facilities . AECOM , Fluor Corporation and Constructora Sudamericana are actively engaged in the construction sector for data centers in Argentina .
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