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 – Crossroads of the Americas
Executive Summary
Panama City is a strategic interconnection point for any business targeting Central America, the Caribbean, and the Andean region. Its importance as a global logistics and financial hub, combined with significant subsea cable landings, provides a secure and stable location to deploy infrastructure. This enables companies to reduce latency and improve application performance for a broad and growing Latin American user base.
Panama City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access but developing terrestrial cross-border fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Miami and Bogotá; private network extensions are available. |
| Power Cost | $0.12 – $0.16 / kWh | Dominated by hydropower, offering more stability than many regional markets. |
| Disaster Risk | Moderate (4.1/10) | Primary risks are seismic and coastal; has a very low risk of cyclones. |
| Tax Incentives | No | Panama focuses on broad free-trade zone benefits, not data center-specific credits. |
| Sales Tax | 7% ITBMS (VAT) | This low rate on services and equipment is a key financial advantage. |
Network & Connectivity Ecosystem
Panama's connectivity is defined by its strategic location where numerous subsea cables land, making it a critical traffic exchange point between North and South America.
Carrier Density & Carrier Neutrality The market includes at least 3 unique data center providers operating 8 facilities, as of September 2025. While smaller than primary hubs like Miami, Panama City provides access to over 10 regional and international carriers, offering sufficient options for redundancy in a carrier-neutral colocation facility.
Direct Cloud On-Ramps There are no direct, in-market cloud on-ramps from major providers, enabling access to 0 cloud regions locally as of September 2025. Businesses requiring dedicated cloud access must establish private network connections to carrier hotels in Miami or Bogotá.
Internet Exchange Points (IXPs) The Panama Internet Exchange Point (PAN-IX) is central to the country's ecosystem. It allows local carriers, content providers, and enterprises to exchange traffic directly, which lowers costs and significantly reduces latency for domestic users.
Bare Metal Bare metal server options are available in Panama City, meeting demand for dedicated, high-performance computing without the virtualization overhead. Providers such as Hivelocity offer deployment options in the region.
Power Analysis
Average Cost Of Power Industrial power pricing in Panama City typically ranges from $0.12 to $0.16 per kWh, as of September 2025. This competitive rate is supported by a grid dominated by hydropower, which provides a degree of price stability compared to markets reliant on fossil fuels.
Power Grid Reliability The power grid serving Panama City’s main commercial districts is reliable for business operations. Data centers are supported by redundant power feeds, and all enterprise-grade facilities provide robust UPS and generator backup to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Panama City provide low-latency connectivity to the country's key economic zones. These include the International Business Park, the downtown financial district, and the Panama Pacifico Special Economic Zone, serving a high concentration of banking, logistics, and multinational corporations.
Regional Market Reach With its strategic subsea cable landings on both the Atlantic and Pacific coasts, Panama is an excellent hub for serving a wide geographic area. It can effectively deliver content and services to Central America, the Caribbean, Colombia, Venezuela, and Ecuador.
Tax Advantage For Data Centers While Panama does not offer specific tax incentives for data center development, its business climate is highly favorable. The national 7% ITBMS (VAT) is among the lowest in Latin America, reducing the cost of hardware importation and ongoing operational services.
Natural Disaster Risk
Panama has a moderate overall natural disaster risk profile, with a score of 4.1 out of 10, as of September 2025. The country's location outside of the primary hurricane alley gives it a significant operational advantage over Caribbean and Floridian markets.
Key risks for consideration in infrastructure planning include:
- Tsunami: A high-risk factor due to extensive coastlines on two oceans.
- Earthquake: A significant consideration, as the country is in a seismically active region.
- Coastal Flooding: A moderate risk for facilities located in low-lying coastal areas.
- Tropical Cyclone: Risk is exceptionally low (0/10), a major benefit for uptime.
