Data Centers in Guatemala City
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Guatemala City – Strategic Hub for Central American Colocation
Guatemala City is the primary digital hub for Guatemala and a strategic entry point for businesses targeting the broader Central American market. This market is best suited for companies requiring low-latency delivery to the region's largest population center, bypassing the need to backhaul traffic to the United States. Deploying infrastructure here directly improves application performance and user experience for a growing digital economy.
Guatemala City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, but lacks direct Tier-1 global peering hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension to major hubs like Miami. |
| Power Cost | $0.09/kWh – as of December 2024 | Highly competitive pricing, supported by a significant renewables mix. |
| Disaster Risk | High (5.3 / 10) – as of September 2025 | Very high seismic risk is the primary concern for infrastructure planning. |
| Tax Incentives | No | Guatemala does not offer specific tax incentives for data centers. |
| Sales Tax | 12% VAT – as of September 2025 | A standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Guatemala City’s connectivity ecosystem is developing, serving as a critical node for Central America. While it doesn't have the density of a global hub, it provides essential local and regional interconnection. There are 4 data centers operated by at least 2 providers as of September 2025.
Carrier Density & Carrier Neutrality Carrier presence is focused, with major regional and local providers offering services. Carrier-neutral facilities are available, allowing customers to choose from multiple networks to optimize for cost, performance, and redundancy.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Guatemala as of September 2025, meaning there are no private, dedicated connections to major cloud providers locally. Businesses connect to cloud regions by extending their networks to major interconnection hubs, primarily Miami.
Internet Exchange Points (IXPs) The market is served by IXP.GT, the Guatemala Internet Exchange. This IXP is crucial for keeping local internet traffic within the country, reducing latency for domestic users and improving overall network efficiency.
Bare Metal Bare metal server options are available, providing dedicated, high-performance computing resources. Providers like Hivelocity and Latitude.sh can service the region, offering an alternative to virtualized environments for demanding workloads.
Power Analysis
Average Cost Of Power The industrial electricity price in Guatemala City is approximately $0.09/kWh as of December 2024. This competitive rate makes managing operational costs for high-density deployments more predictable. The country's energy mix is favorable, with around 70% generated from renewable sources.
Power Grid Reliability The power grid in Guatemala City's commercial zones is adequate for business operations. Data centers in the area are built with significant power redundancy, including enterprise-grade UPS systems, backup generators, and multiple fuel sources to guarantee uptime during any utility disruptions.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Guatemala City are strategically located with access to key commercial districts like Zona 10 (Zona Viva), Zona 9, and Zona 4. This proximity serves the country's financial, corporate, and technology sectors, enabling low-latency connections for critical business operations.
Regional Market Reach As the economic center of the most populous nation in Central America, Guatemala City provides an excellent base for serving the entire region. Colocation here effectively serves neighboring markets such as El Salvador, Honduras, and southern Mexico.
Tax Advantage For Data Centers Guatemala offers no specific tax incentives for data center investment or operations as of September 2025. Companies should model their investments based on the standard corporate tax structure and the 12% Value Added Tax (VAT) applied to most goods and services.
Natural Disaster Risk
Guatemala has a high-risk profile, with an INFORM Risk score of 5.3 out of 10 as of September 2025. The primary risks to data center infrastructure are geologic and meteorological, requiring careful site selection and facility engineering to mitigate potential impacts.
Key natural hazards include:
- Earthquake: An extremely high risk (9.5/10), as the country is located on the boundary of three tectonic plates.
- Epidemic: A moderate to high risk (5.5/10).
- River Flood: A moderate risk (4.2/10), particularly during the rainy season.
- Tropical Cyclone: A moderate risk (3.7/10), with the potential for heavy rains and wind affecting infrastructure.
