Data Centers in Panama
8 locations found
- IP
InteRED Panama Panamá
Vía Ricardo J. Alfaro, Bethania
- UP
UFINET PANAMA S.A. Edificio Victoria Plaza
Avenida Ricardo Arango, Bella Vista
- MM
Metro MPLS Panama City
Calle 57 Este, Bella Vista
- TO
Trans Ocean Network Corozal
Avenida Omar Torrijos, Ancon
- TC
Telxius Cable Movistar
Avenida de la Rotonda, Parque Lefevre
- K
KIO PA|1
Parque Internacional de Negocios, Veracruz
- N
Navégalo PA1
Avenida Mulvehill, Veracruz
- T
Tigo Samuel Lewis
53 Avenue Samuel Lewis, Ernesto Cordoba Campos
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Panama – The Crossroads of the Americas
Panama stands as a strategic digital gateway for Latin America. For businesses targeting Central America, the Caribbean, and northern South America, Panama offers a stable and well-connected hub to deliver low-latency services. Its unique geographic position, combined with a robust submarine cable network, makes it an essential location for improving application performance and user experience across the region.
Panama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional hub with extensive subsea cable access, but limited direct peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Miami; private connectivity options are available. |
| Power Cost | $0.14 – $0.18/kWh (est.) | Based on regional industrial rates; hydro-dominated grid offers some price stability. |
| Disaster Risk | Moderate (4.1/10) | Elevated risk from seismic activity and tsunamis; very low hurricane risk. |
| Tax Incentives | No | Panama does not offer specific tax incentives for foreign investment in data centers. |
| Sales Tax | 7% ITBMS (VAT) | The standard Value-Added Tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Panama's connectivity is its greatest asset, serving as a critical landing point for multiple transcontinental submarine cables. This infrastructure provides a solid foundation for digital operations targeting the wider Latin American market.
Carrier Density & Carrier Neutrality With 8 data centers and at least 3 unique network providers, as of September 2025, the market offers foundational carrier diversity. Carrier-neutral facilities are available, allowing customers to interconnect with the providers that best suit their performance and cost requirements.
Direct Cloud On-Ramps There are no direct, in-country cloud on-ramps from major hyperscalers, as of September 2025. Businesses requiring dedicated cloud access typically connect to the nearest primary hubs in Miami via private network extensions or high-capacity wavelength services over the extensive subsea cable systems.
Internet Exchange Points (IXPs) The primary local exchange is the Panama Internet Exchange Point (PAIX). While modest, it facilitates some local traffic exchange, helping to reduce latency for in-country communications. Most international peering occurs privately or through hubs in the United States.
Bare Metal Bare metal server options are available in Panama, providing dedicated, high-performance compute for latency-sensitive workloads. Providers like Hivelocity offer solutions in the region, enabling businesses to deploy infrastructure closer to their end-users.
Power Analysis
Panama's power infrastructure is reliable, particularly within the primary commercial areas where data centers are concentrated.
Average Cost Of Power Industrial power costs are estimated to be between $0.14 and $0.18 per kWh, as of September 2025. While not the cheapest in the region, the cost is offset by a grid dominated by hydroelectric power, which contributes to greater price predictability and supports sustainability goals.
Power Grid Reliability The power grid in and around Panama City is well-engineered and supports the uptime requirements of modern data centers. Major facilities are supplied by redundant power feeds from separate substations, ensuring high levels of availability for mission-critical operations.
Market Access, Business & Tax Climate
Panama offers a business-friendly environment and unmatched geographic positioning for reaching Latin American markets.
Proximity To Key Business Districts Data centers are strategically located near Panama City's international banking and financial district and the logistics hubs surrounding the Panama Canal. This proximity is ideal for financial services, shipping, and logistics companies that depend on minimal delay.
Regional Market Reach From Panama, a single data center deployment can effectively serve millions of users across Central America, the Caribbean, and countries like Colombia and Ecuador. Its subsea cable links provide low-latency routes north to the US and south into the rest of the continent.
Tax Advantage For Data Centers While Panama does not provide specific tax credits for data center investment, its territorial tax system is a significant benefit. This system generally exempts foreign-sourced income from local taxation, which can be advantageous for international companies using Panama as a service hub.
Natural Disaster Risk
Panama carries a moderate overall disaster risk profile, with an INFORM Risk score of 4.1 out of 10, as of September 2025. The risk is not evenly distributed, with specific geological and coastal hazards being the primary concern.
Key natural hazards for the country include:
- Tsunami: A high-risk factor (8.5/10) due to seismic activity in the Pacific Ring of Fire.
- Earthquake: A significant risk (7.8/10), requiring facilities to be built to modern seismic standards.
- Coastal Flood: A notable risk (5.9/10) for low-lying areas along the extensive coastlines.
- Tropical Cyclone: A very low risk (0/10), as Panama lies outside the primary Atlantic hurricane belt.
