Data Centers in Dominican Republic
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Dominican Republic – Caribbean Hub for Connectivity
The Dominican Republic is a strategic digital hub for businesses targeting the Caribbean and Central American markets. Its combination of resilient submarine cable connectivity and a growing number of data centers provides a reliable platform for content delivery, disaster recovery, and regional operations, minimizing latency for a user base of millions.
Dominican Republic: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong submarine cable access balanced by limited terrestrial diversity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Miami; private network extensions are available. |
| Power Cost | ≈ $0.19/kWh – as of 2014 | Higher than some regional averages, reflecting reliance on fossil fuels. |
| Disaster Risk | Medium (4.3/10) – as of September 2025 | Significant exposure to tropical cyclones and seismic activity requires resilient infrastructure. |
| Tax Incentives | Varies | General and data center-specific incentives exist, though some have been modified. |
| Sales Tax | 18% VAT – as of September 2025 | Standard value-added tax applies to most goods and services. |
Network & Connectivity Ecosystem
The Dominican Republic serves as a critical network intersection in the Caribbean, landing multiple submarine cables that link North and South America. This provides a solid foundation for regional connectivity.
Carrier Density & Carrier Neutrality: The market is served by at least 2 primary telecommunications providers as of September 2025. Carrier-neutral facilities are available, offering interconnection between local and international networks.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within the Dominican Republic. Businesses requiring dedicated cloud access connect to major hubs, primarily Miami, via private network interconnects or wavelength services offered by local and international carriers.
Internet Exchange Points (IXPs): The primary exchange is the IX.DO (CABASE), which facilitates local traffic exchange between internet service providers. This helps reduce latency for domestic users and lowers transit costs for its members.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer deployment options in the region.
Power Analysis
Average Cost Of Power: Industrial electricity costs are approximately $0.19/kWh as of 2014. This price point is a key consideration for high-density deployments and can influence total operational costs compared to other Latin American markets.
Power Grid Reliability: The national power grid can experience stability issues. For this reason, all major data centers in the Dominican Republic are equipped with enterprise-grade redundant power systems, including multiple utility feeds, on-site generators, and extensive UPS battery backup to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are strategically located near Santo Domingo, the nation's economic and political capital. This proximity provides low-latency connectivity for the financial services, telecommunications, and government sectors concentrated there.
Regional Market Reach: The country's robust submarine cable infrastructure makes it an effective point of presence for serving the Greater Antilles and the broader Caribbean basin. It is a logical location for content delivery networks and disaster recovery sites for businesses with operations in the region.
Tax Advantage For Data Centers: The government has established tax measures that can benefit technology investments. These incentives, including credits for electronic invoicing and potential exemptions, are designed to lower the financial burden of establishing digital infrastructure.
Natural Disaster Risk
The Dominican Republic has a Medium overall disaster risk profile, with a score of 4.3 out of 10 as of September 2025. The primary environmental threats are weather-related and seismic, requiring that data centers be built to high structural and operational standards.
Key natural hazards include:
- Tropical Cyclone: The most significant threat, with a maximum risk score of 10.
- Earthquake: A high-risk factor with a score of 9.2.
- Tsunami: A moderate risk at 5.1, given the nation's island geography.
- Coastal Flood: A moderate risk with a score of 4.8.
