Data Centers in Santo Domingo
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Santo Domingo – The Caribbean’s Hub for Subsea Interconnection
Executive Summary
Santo Domingo serves as the primary digital crossroads for the Caribbean, offering indispensable low-latency access to regional markets and North American hubs. It is the premier choice for organizations needing a resilient base for high-stakes financial services and mission-critical telecommunications across the island.
Santo Domingo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional subsea cable hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major on-ramp hub is Miami. |
| Power Cost | Industrial electricity: $0.19/kWh, as of September 2025 | Higher than US mainland averages. |
| Disaster Risk | Moderate (4.3/10), as of September 2025 | Hardened for seismic and storm events. |
| Tax Incentives | Yes | Specific data center tax breaks available. |
| Sales Tax | 18% VAT, as of September 2025 | Standard rate for commercial services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5 – as of September 2025. This market features a concentrated group of providers that manage the primary international transit and local loops. While the numbers are lower than Tier 1 cities, the density is high relative to the regional population.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of September 2025. Native on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure are not present locally. Connectivity to these providers is typically managed through private network interconnects or dedicated circuits reaching back to the nearest hub in Miami.
Internet Exchange Points (IXPs): Peering is largely handled through the primary regional exchange to keep domestic traffic within the country. This setup is vital for reducing latency for local users by avoiding unnecessary international routing.
Bare Metal: Resilient bare metal services are available through regional specialists and global providers like Latitude.sh. These options allow for rapid deployment of physical hardware without the capital expenditure of traditional colocation.
Power Analysis
Average Cost Of Power: Industrial electricity is approximately $0.19/kWh, as of September 2025. These rates make energy efficiency a priority for local operators. The current energy mix consists of roughly 85% fossil fuels and 15% renewables, primarily from hydro and biomass.
Power Grid Reliability: Critical infrastructure in the major business corridors is supported by well-engineered systems. Data centers in this market utilize heavy redundancy and on-site generation to manage grid stability effectively and ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are located near the financial and commercial centers of Santo Domingo and Boca Chica. This proximity is vital for the banking, tourism, and telecommunications sectors that drive the local economy and require physical proximity to subsea landing stations.
Regional Market Reach: Santo Domingo serves a population of over 10 million people domestically. It also acts as a technical bridge for other Caribbean nations, providing a stable environment for regional service delivery across the Antilles.
Tax Advantage For Data Centers: The Dominican Republic provides specific tax exemptions for data center equipment and digital infrastructure projects. These incentives, alongside tax credits for e-invoicing, significantly improve the financial viability of local deployments compared to regional competitors.
Natural Disaster Risk
Santo Domingo has a Moderate (4.3/10) risk profile as of September 2025. Facilities in this region are purpose-built to address the specific environmental hazards of the Caribbean.
- Tropical Cyclone: 10/10. This is the primary concern for the region, requiring facilities to be hardened against high winds and heavy rain.
- Earthquake: 9.2/10. The island is seismically active, and modern data centers are constructed with specific structural reinforcements.
- Epidemic: 7.4/10. This is a significant factor in regional risk planning for staff and operational continuity.
- Tsunami: 5.1/10. While a risk for coastal areas, this is an indirect regional factor that influences site selection for critical assets.
- Coastal Flood: 4.8/10. Proximity to the coast necessitates precise drainage and elevation strategies.
Other risks, such as river flooding and drought, are minor or not listed as primary threats to the digital infrastructure in this market as of September 2025.
