Data Centers in Honduras
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Honduras – Emerging Hub for Central American Digital Services
Honduras represents an emerging market for digital infrastructure in Central America. For companies targeting the region's growing economies, establishing a presence here can offer a strategic foothold, though it requires careful planning around connectivity and disaster resilience. Success in this market means balancing cost-effective operations with investments in network extensions to major regional hubs.
Honduras: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Adequate for regional needs, but lacks extensive international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Miami or Mexico City; private connectivity is required. |
| Power Cost | HNL 4.50–5.25/kWh | Industrial power costs are moderate for the region. |
| Disaster Risk | High (5.8/10) – as of September 2025 | Significant exposure to earthquake, tsunami, and flood events. |
| Tax Incentives | No | No specific incentives are available for data center development. |
| Sales Tax | 15% Sales Tax – as of September 2025 | Standard national sales tax applies to services and equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier diversity is limited, with infrastructure concentrated around major urban centers like Tegucigalpa and San Pedro Sula. The market has fewer than 25 carriers active as of September 2025, with a developing carrier-neutral ecosystem.
Direct Cloud On-Ramps: Honduras has no direct cloud on-ramps to major providers, as of September 2025. Businesses require private network extensions or IP transit to connect to cloud regions. The primary access hubs are located in Miami, Florida, or Mexico City.
Internet Exchange Points (IXPs): Public peering is not a significant feature of the local ecosystem. Most traffic exchange occurs privately between major service providers or is routed through international upstream connections.
Bare Metal: Bare metal server options are available, typically through regional providers or international companies that can deploy equipment locally. Providers like Latitude.sh offer services that can reach into the Honduran market.
Power Analysis
Average Cost Of Power: Industrial electricity prices are estimated to range between HNL 4.50 and HNL 5.25 per kWh, as of September 2025. This cost structure is influenced by a heavy reliance on hydroelectric power, making budgeting predictable outside of seasonal variations.
Power Grid Reliability: The national grid has a significant renewable energy component, primarily hydroelectric, which accounts for 60–70% of generation. While this promotes sustainability, reliability can be a concern, especially outside of primary industrial zones. Data centers require robust backup generation and UPS systems to ensure consistent uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data center facilities are situated to serve the primary economic hubs of Tegucigalpa, the capital, and San Pedro Sula, the country's industrial center. This positioning supports financial services, manufacturing, and government operations.
Regional Market Reach: Honduras provides a central location for serving digital content and services to neighboring countries like El Salvador, Nicaragua, and Guatemala. Its strategic position can help reduce latency for end-users across this portion of Central America.
Tax Advantage For Data Centers: There are no specific tax incentives for data center construction or operation. The government's current posture focuses on broader economic development rather than targeted IT infrastructure investment.
Natural Disaster Risk
Honduras has a High risk profile for natural disasters, with an overall INFORM Risk score of 5.8 out of 10, as of September 2025. The primary threats are geological and meteorological, requiring resilient infrastructure and thorough disaster recovery planning.
Key natural hazards include:
- Earthquake: 8.1
- Tsunami: 6.4
- River Flood: 5.4
- Drought: 5.0
- Tropical Cyclone: 4.6
- Coastal Flood: 4.0
