Data Centers in Guatemala

Guatemala – Strategic Gateway to Central America

Executive Summary

Guatemala is an emerging data center market for businesses requiring a strategic foothold in Central America. While the ecosystem is developing, it provides essential infrastructure to serve the region's largest economy, reducing latency for local users. Success in this market depends on selecting resilient facilities engineered to manage significant environmental risks.

Guatemala: At A Glance

Network & Connectivity Ecosystem

Guatemala's connectivity landscape is concentrated but functional, serving as a primary hub for the northern Central American region.

Carrier Density & Carrier Neutrality The market includes 6 data centers operated by 2 primary providers as of September 2025. While carrier choice is more limited than in larger hubs, carrier-neutral facilities provide access to the key regional and international networks necessary for business operations.

Direct Cloud On-Ramps There are no direct, in-country public cloud on-ramps as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to interconnection hubs in Miami, Florida or Mexico City.

Internet Exchange Points (IXPs) The Guatemala Internet Exchange (IXP-GT) facilitates local traffic exchange, helping to reduce latency for domestic users. However, a significant portion of peering is still handled privately or routed through international carrier networks.

Bare Metal Bare metal server options are available, typically through providers that serve the broader Latin American market. Companies like Hivelocity and Latitude.sh can provide dedicated server infrastructure for workloads requiring high performance and control.

Power Analysis

Average Cost Of Power Industrial power costs are competitive for the region, averaging approximately US$0.09/kWh as of December 2024. This favorable pricing, combined with a grid supplied by roughly 70% renewable sources, provides a predictable and sustainable operational cost structure.

Power Grid Reliability The power grid in Guatemala City and other primary commercial zones is adequate for business use. Data center operators do not rely solely on the grid, deploying multiple levels of redundancy, including enterprise-grade UPS systems and on-site diesel generators, to ensure uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are located in or near Guatemala City, the nation's economic and governmental center. This ensures low-latency connectivity for the financial, manufacturing, and public sectors that drive the country's economy.

Regional Market Reach As the most populous country in Central America, Guatemala provides a strategic point of presence to serve not only its domestic market but also neighboring countries like El Salvador, Honduras, and Belize. This makes it a logical hub for content delivery and application performance across the region.

Tax Advantage For Data Centers Guatemala does not offer specific tax incentives for data center development or operation. The primary financial advantage is a straightforward and predictable business environment with a standard 12% Value Added Tax (VAT) on services.

Natural Disaster Risk

Guatemala has a High risk profile for natural disasters, with an overall INFORM Risk score of 5.3 out of 10 as of September 2025. This rating reflects significant exposure to geophysical and climate-related events, making facility resilience a critical factor in provider selection.

Key natural hazards include:

• Earthquake: (9.5/10) The country is in a seismically active zone with a very high risk of significant earthquakes.
• Tsunami: (6.8/10) The Pacific coastline is exposed to tsunami risk following seismic events.
• River Flood: (4.2/10) Seasonal rainfall can lead to significant river flooding in various regions.
• Tropical Cyclone: (3.7/10) Both Atlantic and Pacific coasts are susceptible to hurricanes and tropical storms.
• Coastal Flood: (3.7/10) Low-lying coastal areas face risks from storm surge and sea-level rise.