Data Centers in El Salvador
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Explore Markets in El Salvador
El Salvador – Central America’s Emerging Digital Gateway
Executive Summary
El Salvador serves as a strategic hub for organizations requiring reliable regional connectivity and a business-friendly environment in Central America. By combining aggressive tax incentives with a renewable-heavy power grid, the country provides a stable platform for managing regional data workloads. This position is ideal for enterprises looking to scale digital operations with low overhead and resilient infrastructure.
El Salvador: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Stable regional links with expanding capacity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Miami is the primary regional hub for cloud access. |
| Power Cost | US$0.09/kWh – as of December 2024 | Competitive rates driven by 83% low-carbon energy sources. |
| Disaster Risk | Moderate (4.0/10) – as of September 2025 | High seismic activity requires specific engineering standards. |
| Tax Incentives | Yes – as of September 2025 | ICT Innovation Law offers sector-wide infrastructure exemptions. |
| Sales Tax | 13% VAT – as of September 2025 | Standard rate for commercial transactions. |
Network & Connectivity Ecosystem
The infrastructure in El Salvador is evolving into a specialized digital corridor for the region. Market participants benefit from a regulatory environment that encourages private investment in fiber and compute resources.
Carrier Density & Carrier Neutrality: Carrier count: over 5 as of September 2025. While the market is growing, the current landscape is concentrated around primary providers managing major international links. This density is sufficient for redundant regional routing.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of September 2025. There are no direct physical on-ramps for major providers such as AWS or Google Cloud (GCP) located in the country. Local entities use high-capacity private waves or PNI to connect with global hubs in Miami.
Internet Exchange Points (IXPs): Peering occurs through local exchanges that prioritize keeping domestic traffic within the country to minimize latency for local users as of September 2025.
Bare Metal: High-performance compute resources are available via regional providers and automated hardware platforms like Latitude.sh as of September 2025.
Power Analysis
The energy profile in El Salvador is a significant differentiator for large-scale data operations and high-density deployments.
Average Cost Of Power: Industrial electricity is priced at US$0.09/kWh as of December 2024. These competitive power costs improve the total cost of ownership for colocation clients. The power mix is 83% low-carbon, utilizing geothermal and hydroelectric sources for sustainable operations as of September 2025.
Power Grid Reliability: The grid is well-engineered and relies on geothermal baseload power for consistent delivery as of September 2025. This provides a stable foundation for high uptime in major commercial zones.
Market Access, Business & Tax Climate
The local business climate is geared toward attracting technology capital through legislative support.
Proximity To Key Business Districts: Facilities are located near San Salvador, ensuring low-latency access for financial services, government offices, and the growing startup ecosystem as of September 2025.
Regional Market Reach: The country serves as a logical staging point for data reaching 45 million consumers in the Central American Northern Triangle as of September 2025.
Tax Advantage For Data Centers: The ICT Innovation Law provides total tax exemptions for companies building technology infrastructure as of September 2025. These incentives significantly reduce the cost of entry and operation for data center providers.
Natural Disaster Risk
El Salvador has an overall risk score of Moderate (4.0/10) as of September 2025. While the environment presents specific challenges, modern facilities use purpose-built engineering to maintain operational continuity.
- Earthquake (9.2): This is the primary hazard as of September 2025, requiring resilient structural designs and seismic dampening.
- Tsunami (7.6): This is a regional threat that impacts coastal zones rather than primary inland facility corridors as of September 2025.
- Epidemic (5.2): Represents a moderate concern for workforce continuity as of September 2025.
- Coastal Flood (4.3): Impacts are confined to littoral zones and typically do not affect facilities in protected elevation zones as of September 2025.
Other hazards like river flooding and drought are minor and have a low impact on infrastructure stability as of September 2025.
