Data Centers in San Jose

San Jose – Central America's Green IT Hub

Executive Summary

San Jose, Costa Rica is the premier data center market in Central America for enterprises prioritizing stability and sustainability. The country's impressive reliance on nearly 100% renewable energy provides a unique advantage for companies with ESG mandates. This market offers a reliable platform for serving regional customers and securing business operations in a politically and economically stable environment.

San Jose: At A Glance

Network & Connectivity Ecosystem

San Jose has a capable connectivity ecosystem designed for regional business operations, though it is not a major international hub. There are 8 data centers operated by at least 2 providers as of September 2025.

Carrier Density & Carrier Neutrality: Carrier choice is focused, with over 2 providers offering services. The market supports carrier-neutral facilities, allowing interconnection between key local and regional networks.

Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major hyperscalers as of September 2025. Secure, low-latency connections to providers like AWS, Google Cloud, and Azure are established via private network links to interconnection hubs, primarily in Miami, Florida.

Internet Exchange Points (IXPs): The Costa Rica Internet Exchange (CRIX) is the primary IXP in the country. It plays a crucial role in keeping local traffic within national borders, improving performance and reducing reliance on international transit for domestic data exchange.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers such as Latitude.sh offer deployments in the San Jose market.

Power Analysis

Costa Rica is a global leader in renewable energy, a significant advantage for data center operators with sustainability goals.

Average Cost Of Power: The average industrial power cost in San Jose is approximately $0.11/kWh as of December 2024. This competitive rate, combined with the green energy mix, creates a compelling total cost of ownership proposition.

Power Grid Reliability: The national power grid is well-managed, deriving about 99% of its electricity from renewable sources, primarily hydroelectric and geothermal. Data centers are situated in areas with strong grid infrastructure, and all commercial facilities provide extensive N+1 or greater redundancy with UPS and generator backup.

Market Access, Business & Tax Climate

San Jose's business environment is one of the most stable and welcoming in Latin America.

Proximity To Key Business Districts: Data centers are located to serve San Jose's primary business districts and numerous Free Trade Zones (Zonas Francas). These zones host major multinational corporations in sectors like life sciences, technology, and business process outsourcing.

Regional Market Reach: From San Jose, businesses can effectively deliver digital services to the growing consumer and enterprise markets across Central America, including Panama, Nicaragua, and Guatemala.

Tax Advantage For Data Centers: Costa Rica offers specific tax incentives that directly benefit data center customers. A key advantage is a Value Added Tax (VAT) exemption for qualifying data center services, which can significantly lower operational expenses.

Natural Disaster Risk

Costa Rica has a moderate overall disaster risk profile, with an INFORM Risk score of 3.3 out of 10 as of September 2025. The primary risks for infrastructure in the San Jose area are seismic, while coastal threats are geographically distant.

Key natural hazards include:

• Earthquake: 9.1/10
• Tsunami: 8.3/10
• Epidemic: 5.4/10
• Coastal Flood: 4.1/10

While the national scores for tsunami and coastal flooding are high, data centers in the inland Central Valley around San Jose are not directly exposed to these specific threats. All modern facilities are built to stringent seismic codes to mitigate earthquake risk.