Data Centers in Guatemala City
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Guatemala City – Central America's Emerging Connectivity Hub
Guatemala City is the primary digital infrastructure hub for Guatemala and a key entry point for businesses targeting the Northern Triangle region of Central America. For companies requiring low-latency access to the country's growing digital economy, establishing a presence here is critical. This market provides essential connectivity to serve local enterprises, financial institutions, and content users directly.
Guatemala City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing ecosystem with direct access to key regional networks. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest hubs are in Mexico or the US. Private connectivity is available. |
| Power Cost | US$0.09/kWh | Competitive for the region, with a high percentage of renewable energy. |
| Disaster Risk | High (5.3/10) | Significant seismic and weather-related risks require robust facility design. |
| Tax Incentives | No | No specific data center incentives are currently offered. |
| Sales Tax | 12% VAT | Standard Value Added Tax applies to services as of September 2025. |
Network & Connectivity Ecosystem
Guatemala City's connectivity landscape is foundational for the region. While not as dense as larger North American markets, it offers the necessary infrastructure for reaching local and nearby populations effectively.
Carrier Density & Carrier Neutrality The market is served by 2 primary providers across 4 data centers, as of September 2025. Carrier-neutral facilities provide the primary points of interconnection, offering access to the main domestic and regional telecommunication networks.
Direct Cloud On-Ramps As of September 2025, there are no direct, private cloud on-ramps located in Guatemala City. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network hubs in Mexico City or Miami, utilizing long-haul circuits or IP transit.
Internet Exchange Points (IXPs) The local IX-GT facilitates the exchange of domestic internet traffic between service providers. Peering at the IXP improves performance and reduces latency for end-users within Guatemala by keeping local traffic from routing internationally.
Bare Metal Bare metal services are available from providers that serve the broader Latin American market. These solutions provide dedicated compute capacity for performance-sensitive applications, with companies like Latitude.sh offering regional options.
Power Analysis
Average Cost Of Power Industrial power costs in Guatemala City are approximately US$0.09/kWh, as of December 2024. This competitive rate helps control operational expenditures for colocation and large-scale deployments. The country's power mix is favorable, with around 70% generated from renewable sources.
Power Grid Reliability The power grid in the city's main commercial zones is generally stable. Data centers in Guatemala City are built with significant power redundancy, including multiple utility feeds where possible, on-site UPS systems, and diesel generators to ensure continuous uptime during grid disturbances.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Guatemala City are strategically located to serve the capital's financial, corporate, and governmental sectors. This proximity ensures minimal latency for critical applications supporting the country's largest economic center.
Regional Market Reach Guatemala City acts as a service hub not only for its 18 million citizens but also for neighboring markets such as El Salvador and Honduras. It provides a stable operating environment for delivering digital services across the Northern Triangle of Central America.
Tax Advantage For Data Centers Guatemala does not offer specific tax incentives for data center operations, as of September 2025. Businesses operate under the standard corporate tax framework, with a 12% Value Added Tax (VAT) applied to services.
Natural Disaster Risk
Guatemala has a High overall natural disaster risk profile, with an INFORM Risk score of 5.3 out of 10, as of September 2025. The risk profile demands that data centers are engineered to withstand specific regional threats.
Key risks for the country include:
- Earthquake: At 9.5 out of 10, seismic activity is the most significant threat. Facilities must be built to modern seismic-resistant standards.
- Tsunami: Scored at 6.8, this risk is confined to Guatemala's coastal areas and does not directly affect the inland capital city.
- River Flood: A moderate risk at 4.2, requiring careful site selection away from flood-prone areas.
- Tropical Cyclone: Rated at 3.7, hurricanes and tropical storms can impact the country, necessitating hardened building construction.
