In late 2018, Peru’s first data center launched operations under the management of multinational Grupo Gtd. This marked a pivotal moment for the country’s technological sector. Peru has gone on to become a contender among regional leaders Brazil, Chile, and Mexico.
Today, the country hosts 29 certified data centers—physical facilities housing computing and data-storage equipment—and annual investment in digital infrastructure in Peru is projected to reach US$310 million by 2029. These are remarkable figures for a nation that has struggled with political instability and six presidents in just eight years.
Although data centers typically require public-private investment in digital infrastructure, Peru’s success does not lie in state planning. Peru offers a case study in how legal certainty, a restrained government, and public-private partnerships (PPPs) can fuel innovation and development. The country’s growing digital infrastructure and connectivity, bolstered by renewable energy prospects, is a proof of the enduring value of economic freedom.
Investor-Friendly Institutions
According to the Central Reserve Bank of Peru (BCRP), foreign direct investment reached $6.7 billion in 2023 and over $9 billion in 2024. The projection for 2025 climbs to $11.4 billion. These growing figures confirm that investors trust Peru’s legal and institutional foundations enough to place their capital there, even amid political turbulence.
That confidence rests on two pillars: a stable currency and a clear, investor-friendly regulatory framework. The BCRP operates independently from the executive branch, ensuring monetary policy remains insulated from political pressure. Further, the Peruvian Constitution explicitly prohibits the government from financing public spending through money printing, shielding the country from inflationary populism.
Meanwhile, investment rules are relatively simple. Foreign and local investors play by the same rules, with no need for special authorizations. ProInversión, the national investment agency, keeps red tape to a minimum. At the same time, bilateral and multilateral agreements offer strong protections for foreign investors: expropriation is off the table, and tax stability clauses ensure that rules do not change once an investment is made.
Foreign investment boosts jobs, productivity, and tech transfer, and the proof is in the pudding. According to a 2023 Equilibrium survey, 84 percent of Peruvians believe FDI helps generate more jobs; 82 percent say it supports economic growth; and 80 percent agree it fosters technological development. In a region where legal uncertainty, protectionism, and populist policies often scare away capital, Peru stands out as a case of market-driven resilience.
Relative Economic Freedom
The Heritage Foundation’s 2025 Index of Economic Freedom ranks Peru as a “moderately free” economy: 54th out of 184 countries. Although far from perfect, that is above the regional and global averages. Challenges remain—especially around the rule of law—but the report highlights strong business, trade, and labor freedoms. These indicators suggest that Peru’s relatively restrained government aims not to control markets, but to enable them.
In early 2024, the Ministry of Economy and Finance launched an initiative to cut red tape and accelerate private investment. Known as “regulatory shock [regulatorio]” the effort has reduced permits and procedures that have slowed down investments and weakened national competitiveness.
Economy Minister José Arista explained: “Peru has already positioned itself as a reliable destination for investment thanks to strong investor guarantees. Now we must consolidate that strength at the regional level and among OECD countries.” Arista cited stalled mining projects as clear examples of the harm caused by overregulation. He emphasized the need for collaborative reform involving the private sector, academia, and subnational governments.
These efforts reduce investor risk and give Peru a competitive edge over neighboring countries. In Ecuador, for instance, legal uncertainty and impediments continue to drive away capital, and Chile faces a politicized regulatory climate that has slowed mining and energy projects.
Public-Private Infrastructure Growth
Since the early 2000s, Peru has leaned heavily on public-private partnerships (PPPs) to build infrastructure without overburdening public finances. The country has embraced a pay-for-performance model. Unlike traditional public works—where governments pay upfront and assume all the risk—PPPs shift the design, construction, and operational risks to private partners, who are only compensated once projects are up and running.
Between 2002 and 2024, Peru awarded 143 PPP projects totaling $46.5 billion, spanning transport, energy, telecommunications, health, and digital infrastructure. In recent years, there has been a notable pivot toward connectivity and energy diversification—including regional broadband networks, rural electrification, and data-center development.
A 2019–2022 evaluation of broadband PPPs—conducted by ProInversión—revealed concrete results: school pass rates increased by 33 percent nationwide, household incomes rose by 5 percent, and access to medical care improved significantly in remote areas. As connectivity expands, demand for digital services—and by extension, data centers—grows. Likewise, the expansion of clean-energy PPPs is boosting power supply, which is critical for operating data centers.
Peru’s openness to private capital and long-term partnerships is turning its ambition to become a regional data hub into an achievable goal. The country’s message is clear: private investment drives national progress. While other governments tighten control through regulation, Peru has embraced lean governance, smart oversight, and open markets. This case shows that a limited government can still deliver big when it empowers private initiative through well-structured collaboration.
