Data Centers in Santo Domingo
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Santo Domingo – Caribbean Digital Hub
Santo Domingo is the primary connectivity and colocation hub for the Dominican Republic, serving as a critical digital gateway for businesses targeting the Caribbean market. Its strategic location and developing infrastructure provide a solid foundation for deploying applications that require low-latency access to regional end-users. The market is best suited for content delivery networks, financial services, and enterprises establishing a disaster recovery site in the region.
Santo Domingo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity with opportunities for growth. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private network extension to hubs like Miami. |
| Power Cost | ≈ $0.19/kWh, as of September 2025 | Based on 2014 industrial rates; subject to change. |
| Disaster Risk | Moderate (4.3/10), as of September 2025 | High exposure to tropical cyclones and earthquakes. |
| Tax Incentives | Varies | Includes data-center exemptions and credits for e-invoicing. |
| Sales Tax | 18% VAT, as of September 2025 | Standard value-added tax rate for goods and services. |
Network & Connectivity Ecosystem
Santo Domingo's network ecosystem is concentrated but capable, serving as the Dominican Republic's main point of interconnection.
Carrier Density & Carrier Neutrality: The market features at least two data centers, with access to over a dozen local and regional carriers as of September 2025. Carrier-neutral facilities provide options for creating redundant network paths.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Santo Domingo as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via dedicated private network links to the nearest primary hub in Miami.
Internet Exchange Points (IXPs): The primary exchange is the Caribbean Internet Exchange (CAR-IX), which facilitates local traffic peering, reducing latency and transit costs for users within the Dominican Republic.
Bare Metal: Bare metal server options are available, offering dedicated compute resources for performance-sensitive workloads. Providers like Latitude.sh and similar regional specialists serve the Santo Domingo market.
Power Analysis
Average Cost Of Power: Industrial electricity costs are approximately $0.19/kWh, based on 2014 data. This rate is higher than in some other Latin American markets, making power a significant operational expense for high-density deployments.
Power Grid Reliability: The power grid in Santo Domingo can experience inconsistencies. For this reason, all major data centers operate with enterprise-grade UPS systems and multiple backup diesel generators with extensive onsite fuel storage to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Santo Domingo are situated to serve the city's central business districts and industrial parks. This proximity provides low-latency connectivity for financial services, government agencies, and major corporate offices.
Regional Market Reach: From Santo Domingo, businesses can effectively serve the entire population of the Dominican Republic and extend their reach into Haiti, Puerto Rico, and other nearby Caribbean islands.
Tax Advantage For Data Centers: The Dominican Republic offers several indirect tax measures that can benefit data center operators and tenants. These include specific exemptions for data centers and tax credits related to the adoption of electronic invoicing, which helps lower the total cost of operation.
Natural Disaster Risk
Santo Domingo has a moderate overall disaster risk profile, with an INFORM Risk score of 4.3 out of 10 as of September 2025. The primary threats are environmental, requiring careful facility selection and disaster recovery planning.
Key natural hazards include:
- Tropical Cyclone: Score 10/10
- Earthquake: Score 9.2/10
- Tsunami: Score 5.1/10
- Coastal Flood: Score 4.8/10
- River Flood: Score 2.2/10
