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Guatemala – Central America’s Primary Digital Gateway

Guatemala: The Northern Connectivity Hub

Guatemala serves as the essential first hop for digital infrastructure entering Central America from North America. It is a critical market for enterprises requiring a localized presence to serve one of the region’s largest populations while maintaining low-latency links to major hubs in Mexico and the United States.

Guatemala: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable regional performance with strong subsea cable access.
Direct Cloud On-Ramps0 – as of December 2024Access via private extensions to Mexico City or Miami.
Power CostUS$0.09/kWh – as of December 2024Competitive pricing with ~70% renewable generation mix.
Disaster RiskHigh (5.3/10) – as of September 2025Seismic activity requires facilities with advanced engineering.
Tax IncentivesNo – as of December 2024Standard corporate tax structure without specific industry breaks.
Sales Tax12% VAT – as of September 2025Standard national rate for colocation and digital services.

Network & Connectivity Ecosystem

Guatemala’s infrastructure is a mature transit point for the Northern Triangle. As of September 2025, the market supports 6 data centers across 2 primary providers.

Carrier Density & Carrier Neutrality: Carrier count: over 10 as of September 2025. The market features major regional players such as Claro and Tigo, though carrier-neutral colocation options are available in Guatemala City for those requiring diverse routing.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. While local physical on-ramps for AWS or Microsoft Azure are not present, operators provide low-latency private waves to the nearest major cloud hubs in Mexico City or the United States.

Internet Exchange Points (IXPs): Most traffic exchange occurs through private peering or regional hubs, though local traffic exchange is increasingly managed through national peering points to keep domestic data within the country.

Bare Metal: High-performance compute options are available through global providers such as Hivelocity and Latitude.sh, supporting workloads that require local processing without long-term hardware commitments.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at US$0.09/kWh as of December 2024. This pricing is favorable compared to many Caribbean and North American markets, helping to lower the total cost of ownership for high-density deployments.

Power Grid Reliability: The national grid is reliable in major urban corridors like Guatemala City and Mixco. Most facilities leverage multi-substation support and on-site generation to maintain high availability despite localized distribution challenges.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are centrally located near the financial heart of Guatemala City and the industrial zones of Mixco. This proximity is vital for low-latency financial transactions and supporting the headquarters of regional retail and logistics firms.

Regional Market Reach: Guatemala provides a stable platform to reach over 17 million people locally and serves as a natural springboard for services targeting the broader Northern Triangle of Central America.

Tax Advantage For Data Centers: The local tax environment follows standard corporate structures without specialized industry breaks. Businesses benefit most from the competitive industrial power rates and a predictable 12% VAT, which simplifies budgeting for cross-border digital services.

Natural Disaster Risk

The overall risk profile for Guatemala is High (5.3/10) as of September 2025. Facility selection should prioritize sites with advanced seismic engineering and flood protection.

  • Earthquake: 9.5/10. Seismic activity is the primary hazard, requiring strict adherence to modern building codes.
  • Tsunami: 6.8/10. This is a regional concern for coastal landing stations; however, most primary data centers are located inland at higher elevations.
  • Epidemic: 5.5/10. Represents a moderate risk to operational continuity and workforce availability.
  • River Flood: 4.2/10. Seasonal rainfall can impact localized areas, necessitating facilities with raised flooring and sophisticated drainage.

Other hazards such as Tropical Cyclone and Coastal Flood are considered minor risks for the primary data center clusters located in the central highlands as of September 2025.

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