Data Centers in San Salvador
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San Salvador – Central America's Emerging Digital Hub
Executive Summary
San Salvador is establishing itself as a strategic digital infrastructure location for businesses targeting El Salvador and the broader Central American region. The market offers compelling power costs, a significant share of renewable energy, and aggressive government incentives designed to attract technology investment. For companies focused on regional service delivery and disaster recovery, San Salvador provides a foundational entry point into an underserved market.
San Salvador: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity, primarily routing through regional hubs. |
| Direct Cloud On-Ramps | 0 – as of December 2024 | Access is via network providers connecting to hubs like Miami. |
| Power Cost | $0.09/kWh – as of December 2024 | Highly competitive industrial pricing with an 83% low-carbon energy mix. |
| Disaster Risk | Moderate (4.0/10) | Significant seismic risk requires purpose-built, resilient data center infrastructure. |
| Tax Incentives | Yes | The ICT Innovation Law offers tax exemptions for technology companies. |
| Sales Tax | 13% VAT – as of September 2025 | Standard Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As an emerging market, San Salvador has a focused but growing number of service providers, with at least one carrier-neutral facility available to enable interconnection. The ecosystem is developing, offering foundational connectivity options for businesses entering the region as of December 2024.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps as of December 2024. Secure, private connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are established through network extensions to the primary regional hub in Miami.
Internet Exchange Points (IXPs): Public peering is limited within San Salvador. Most traffic is exchanged privately between carriers or routed through international hubs, which is typical for a market at this stage of development.
Bare Metal: Bare metal server options are available in San Salvador, primarily through regional providers and global companies that can deploy hardware into local facilities. These solutions provide the raw compute power needed for latency-sensitive applications.
Power Analysis
Average Cost Of Power: The average cost for industrial power in San Salvador is approximately $0.09/kWh as of December 2024. This competitive rate, combined with a grid powered by 83% low-carbon sources like hydro and geothermal, offers significant operational cost and sustainability advantages.
Power Grid Reliability: The power grid in the capital's commercial zones is stable, with data centers supported by redundant power feeds from separate substations. As with any market, enterprise-grade facilities rely on their own N+1 or 2N UPS systems and generator backup to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the San Salvador area provide low-latency connectivity to the city's primary financial, commercial, and government districts. This proximity is essential for industries like finance, e-commerce, and public sector services that require immediate data access.
Regional Market Reach: San Salvador serves as an effective hub for delivering digital services to the entire population of El Salvador. It also functions as a strategic point of presence for reaching neighboring markets in Guatemala, Honduras, and Nicaragua.
Tax Advantage For Data Centers: El Salvador actively encourages technology investment through its ICT Innovation Law, which provides significant tax exemptions and benefits for companies in the sector. Additionally, the government supports the development of investment parks, creating a favorable financial climate for data center operators and their customers.
Natural Disaster Risk
San Salvador has a moderate overall disaster risk profile, with a score of 4.0 out of 10 as of September 2025. The primary environmental threat is seismic activity, making it critical to select data centers engineered to modern earthquake-resistant standards.
The most significant natural hazards include:
- Earthquake: 9.2/10
- Tsunami: 7.6/10 (A national risk affecting coastal areas, indirect for the inland capital)
- Coastal Flood: 4.3/10 (A national risk, not a direct threat to the metro area)
- Drought: 3.6/10
- River Flood: 3.5/10