Data Centers in San Jose

San Jose – Central America's Resilient IT Hub

San Jose is a primary colocation market for businesses targeting Central America. Its combination of extensive renewable energy, stable political climate, and growing fiber optic connectivity provides a reliable platform for companies requiring low-latency access to the region without compromising on uptime or sustainability goals.

San Jose: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: San Jose has a healthy and competitive connectivity market with a presence from at least 2 providers, as of September 2025. The market offers access to multiple regional and local fiber optic networks, ensuring resilient last-mile and regional connectivity. Carrier-neutral facilities are the standard, providing choice and cost control for customers.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Costa Rica, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest hubs in Miami, Florida, or Bogotá, Colombia. Secure, private network connections are typically established through dedicated wavelength or PNI services from local carriers.

Internet Exchange Points (IXPs): The primary exchange point is the Costa Rica Internet Exchange (CRIX), which facilitates local traffic peering to improve performance and reduce transit costs. Most significant peering, however, occurs privately within carrier-neutral data centers or through network providers connecting to international hubs.

Bare Metal: Bare metal server options are available in San Jose, offering dedicated compute resources for performance-sensitive applications. Providers like Hivelocity and Latitude.sh can serve the region, often deploying from facilities in nearby strategic markets.

Power Analysis

Average Cost Of Power: Industrial power rates in San Jose average $0.11/kWh, as of December 2024. This competitive pricing is made possible by the country's heavy investment in renewable energy. For businesses with high-density deployments, these lower energy costs can lead to significant operational savings.

Power Grid Reliability: Costa Rica's power grid is one of the most reliable and sustainable in Latin America, with approximately 99% of its electricity generated from renewable sources. The grid serving San Jose's industrial and data center zones is well-engineered, drawing power from a mix of hydroelectric and geothermal plants, which provides a stable and consistent energy supply.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the San Jose area are strategically located near the city's free trade zones (zonas francas), which host multinational corporations in sectors like medical devices, finance, and technology. This proximity ensures low-latency connectivity for critical business operations and support services.

Regional Market Reach: From San Jose, businesses can effectively serve the entire Central American market, from Guatemala to Panama. The country's central location and stable infrastructure make it an ideal disaster recovery site or secondary node for operations based in North or South America.

Tax Advantage For Data Centers: Costa Rica offers specific tax incentives that directly benefit data center operators and customers. A key advantage is the Value Added Tax (VAT) exemption available for qualifying data center services, which reduces the overall cost of colocation and related infrastructure services.

Natural Disaster Risk

San Jose has a Moderate overall disaster risk profile, with a composite INFORM Risk score of 3.3 out of 10, as of September 2025. While the overall risk is managed through modern building codes and infrastructure planning, specific environmental hazards warrant consideration.

The most significant natural risks for the region include:

• Earthquake: 9.1/10
• Tsunami: 8.3/10
• Epidemic: 5.4/10
• Coastal Flood: 4.1/10
• River Flood: 2.4/10
• Tropical Cyclone: 1.3/10