Data Centers in San Salvador
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San Salvador – Central America’s Sustainable Digital Gateway
Executive Summary
San Salvador serves as the strategic anchor for enterprises targeting the Northern Triangle market. With a power grid dominated by renewable energy and aggressive tax exemptions for technology providers, it offers a stable, cost-effective alternative to traditional regional hubs for high-performance hosting. This market is built for organizations requiring a balance of sustainability and financial efficiency.
San Salvador: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable performance across regional routes as of December 2024. |
| Direct Cloud On-Ramps | 0 – as of December 2024 | Nearest major on-ramps are in Miami or Panama City. |
| Power Cost | US$0.09/kWh – as of December 2024 | High sustainability with 83% low-carbon generation. |
| Disaster Risk | Moderate (4.0/10) – as of January 2026 | Seismic activity is the primary structural consideration. |
| Tax Incentives | Yes | ICT Innovation Law offers sector-specific exemptions. |
| Sales Tax | 13% VAT – as of December 2024 | Standard rate for digital and local services. |
Network & Connectivity Ecosystem
The local infrastructure is maturing, providing the necessary links to bridge North and South American traffic. As of December 2024, the market demonstrates a growing density of regional fiber providers and improved local peering.
Carrier Density & Carrier Neutrality: Carrier count: over 10. The market features ~10–15 providers, including regional incumbents and specialized fiber operators that offer diverse routing paths as of December 2024.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of December 2024. While local direct access to providers like AWS or Azure is not currently available, San Salvador maintains efficient connectivity to hubs in Miami and Panama City via subsea and terrestrial fiber.
Internet Exchange Points (IXPs): Local traffic exchange is primarily facilitated through IXSal, which helps reduce latency by keeping domestic data within the country as of December 2024.
Bare Metal: Dedicated hardware solutions are available through providers such as Latitude.sh and Hivelocity, providing high-performance compute resources for organizations that require direct hardware control as of December 2024.
Power Analysis
San Salvador stands out in the region for its commitment to sustainable energy and competitive industrial pricing.
Average Cost Of Power: Industrial electricity is priced at US$0.09/kWh as of December 2024. This rate is highly competitive and helps businesses manage operational overhead compared to many North American markets. The energy mix is exceptionally green, with 83% of power coming from low-carbon sources like geothermal and hydro.
Power Grid Reliability: Electrical infrastructure in key industrial corridors is well-engineered. Local facilities typically rely on redundant supply lines and multi-substation support to maintain consistent uptime as of December 2024.
Market Access, Business & Tax Climate
San Salvador is positioned as a tech-forward capital with policies specifically intended to attract international infrastructure investment.
Proximity To Key Business Districts: Data centers are located near commercial hubs such as Escalón and San Benito. This proximity is vital for providing low-latency services to the financial sector and corporate headquarters as of December 2024.
Regional Market Reach: From this central location, providers can effectively serve the Northern Triangle, reaching a combined population of over 30 million people across El Salvador, Guatemala, and Honduras as of December 2024.
Tax Advantage For Data Centers: The ICT Innovation Law provides significant tax exemptions for technology firms. This legislation, combined with government-promoted investment parks, creates a highly favorable financial environment for large-scale digital infrastructure as of December 2024.
Natural Disaster Risk
The region faces specific environmental factors that influence site selection and facility engineering. San Salvador carries a Moderate (4.0/10) risk profile as of January 2026.
The primary natural hazards include:
- Earthquake: 9.2 (High) – Significant seismic activity is the leading risk factor, requiring high structural engineering standards as of January 2026.
- Tsunami: 7.6 (High) – This is a regional risk primarily affecting coastal infrastructure and cable landing stations as of January 2026.
- Coastal Flood: 4.3 (Moderate) – A regional concern for coastal connectivity points during severe weather as of January 2026.
- Drought: 3.6 (Moderate) – Potential impact on hydroelectric generation during extended dry cycles as of January 2026.
- River Flood: 3.5 (Moderate) – Localized risks exist near major water basins during the rainy season as of January 2026.
