Data Centers in Panama City
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 City – The Digital Crossroads of the Americas
Panama City is a strategic hub for any business targeting Central and South American markets. Its unique geographic position, combined with a concentration of subsea cable landings, provides a critical low-latency link between North and South America, ensuring efficient data delivery and enhanced application performance for regional users.
Panama City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access, though terrestrial fiber options are less dense. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Miami, Florida and Bogotá, Colombia. |
| Power Cost | $0.14–$0.18/kWh (est.) | Based on a hydro-dominated grid, with significant fossil fuel generation. |
| Disaster Risk | Moderate (4.1/10) | Elevated risk from tsunami and earthquake, but low tropical cyclone exposure. |
| Tax Incentives | No | Panama does not offer specific incentives for foreign investment in this sector. |
| Sales Tax | 7% ITBMS (VAT) | The standard rate applies to IT services and equipment as of September 2025. |
Network & Connectivity Ecosystem
Panama City’s primary value is its role as a major interconnection point, linking numerous subsea cable systems. This makes it a key location for content delivery networks (CDNs), financial services, and logistics companies requiring reliable data transit.
- Carrier Density & Carrier Neutrality: Panama is served by over 15 network providers as of September 2025. The market offers several carrier-neutral facilities, providing diverse options for interconnection and transit.
- Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers as of September 2025. Businesses connect to cloud regions via network extensions to hubs like Miami, leveraging the extensive subsea cable capacity.
- Internet Exchange Points (IXPs): The Panama Internet Exchange Point (PAN-IX) facilitates local traffic peering, which helps reduce latency for domestic users and lowers transit costs for participating networks.
- Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity offer services in the region.
Power Analysis
The power infrastructure in Panama City is built to support its critical role in global commerce and logistics, including the Panama Canal.
- Average Cost Of Power: Industrial power costs are estimated between $0.14 and $0.18 per kWh as of September 2025. This rate is influenced by the country's reliance on hydroelectric power, supplemented by natural gas and oil.
- Power Grid Reliability: The grid supporting the main commercial and data center zones is well-engineered, benefiting from investments made to service the nation's banking and logistics industries. Multiple substations serve the area, providing a reliable power foundation for data center operations.
Market Access, Business & Tax Climate
Panama City provides a stable, dollarized economy and a favorable business environment for multinational corporations.
- Proximity To Key Business Districts: Data centers are located near the city's international banking center and the Panama Canal Zone, offering low-latency connectivity for financial trading, shipping, and logistics applications.
- Regional Market Reach: Panama is an ideal digital gateway to serve Central America, the Caribbean, and the Andean nations of South America. Its connectivity infrastructure makes it a primary consolidation point for regional data traffic.
- Tax Advantage For Data Centers: While no specific data center incentives exist, Panama's territorial tax system generally does not tax income earned outside the country. This structure can be advantageous for international companies using Panama as a hub for regional service delivery.
Natural Disaster Risk
Panama faces a moderate overall disaster risk profile, with specific hazards that require careful site selection and facility engineering. The country's INFORM Risk score is 4.1 out of 10 as of September 2025.
Key natural hazards include:
- Tsunami: High risk (8.5/10) due to coastlines on both the Pacific Ocean and Caribbean Sea.
- Earthquake: High risk (7.8/10) from seismic activity in the region.
- Epidemic: Moderate risk (6.2/10).
- Coastal Flood: Moderate risk (5.9/10).
The risk from tropical cyclones is negligible (0/10), a significant advantage compared to other locations in the Caribbean basin.
