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 – Hub of the Americas for Digital Trade
Panama serves as a crucial digital gateway for businesses targeting Central America, the Caribbean, and South America. Its strategic location, underpinned by multiple subsea cable landings, provides a stable and well-connected base for deploying infrastructure aimed at reducing latency and improving user experience across the region.
Panama: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access balanced by developing terrestrial networks. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Miami and Bogotá. |
| Power Cost | $0.16–$0.21/kWh | Dominated by hydropower, offering stability but at a moderate cost. |
| Disaster Risk | Medium (4.1/10) | Primary risks include tsunami and earthquake activity. |
| Tax Incentives | No | Panama does not offer specific tax incentives for foreign investment in this sector. |
| Sales Tax | 7% ITBMS (VAT) | A competitive value-added tax rate for the region. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Panama has a developing ecosystem with approximately 3 providers operating 8 data centers. While smaller than primary hubs like Miami, the market offers access to key regional and international carriers drawn by the country's subsea cable links.
Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers as of September 2025. Businesses require private network connections to the nearest cloud regions, primarily located in Miami, Florida. This allows for secure, dedicated access to hyperscale cloud services.
Internet Exchange Points (IXPs): The primary exchange is the Panama Internet Exchange (PA-IX). This IXP facilitates local traffic exchange, reducing reliance on international circuits for in-country data transit and lowering latency for domestic users.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Hivelocity offer deployment capabilities in Panama, meeting demands for single-tenant hardware.
Power Analysis
Average Cost Of Power: Industrial electricity prices range from approximately $0.16 to $0.21 per kWh, as of September 2025. This cost is influenced by the country's reliance on a mix of hydropower and fossil fuels, making it a significant operational consideration for high-density deployments.
Power Grid Reliability: The national grid is largely hydro-dominated, which provides a consistent baseload. Major data center facilities are engineered with redundant power feeds, UPS systems, and on-site generators to ensure high levels of uptime, mitigating risks from potential grid fluctuations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Panama are strategically located to serve the capital, Panama City, which is a major international banking and logistics center. This proximity is critical for financial services and shipping companies that require low-latency connections.
Regional Market Reach: Panama's geographic position and concentration of subsea cables make it an ideal hub for serving digital traffic to and from Central America, the Caribbean, and the northern countries of South America.
Tax Advantage For Data Centers: The primary tax benefit is a straightforward and relatively low VAT rate of 7%. While no specific incentives for the data center industry exist, the stable economic environment and territorial tax system can be advantageous for international companies.
Natural Disaster Risk
Panama has a Medium overall disaster risk profile, with an INFORM score of 4.1 out of 10, as of September 2025. The risk assessment highlights several specific natural hazards that require consideration for infrastructure planning and resilience.
Key natural hazards include:
- Tsunami: Score of 8.5
- Earthquake: Score of 7.8
- Coastal Flood: Score of 5.9
- Drought: Score of 1.2
Risks from tropical cyclones are exceptionally low. The primary threats are seismic and coastal, making site selection and facility engineering critical for ensuring operational continuity.
