Data Centers in Puerto Rico

Puerto Rico – The Digital Gateway to the Americas

Puerto Rico is the premier interconnection point for traffic moving between North America and the Caribbean. It offers the legal protections of United States jurisdiction combined with a high-density subsea cable environment essential for low-latency regional expansion. For enterprises targeting Latin American markets while requiring US-compliant security, this island is the strategic choice.

Puerto Rico: At A Glance

Network & Connectivity Ecosystem

Puerto Rico operates as a resilient digital bridge, providing infrastructure that exceeds the capabilities of most neighboring island nations.

Carrier Density & Carrier Neutrality: Carrier count: over 10. As of September 2025, the market features approximately 10–15 active carriers, including a mix of local incumbents and international transport providers.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. There are no direct physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure on the island as of September 2025. Connectivity to these hyperscalers is managed via private PNI or high-capacity waves to the Miami hub.

Internet Exchange Points (IXPs): The Puerto Rico Bridge Initiative (PRBI) serves as the primary IXP, keeping local traffic on the island and reducing latency for domestic users.

Bare Metal: General availability is confirmed through local service providers and global platforms like Hivelocity and Latitude.sh, offering flexible compute options for regional workloads as of September 2025.

Power Analysis

Managing energy costs is a critical component of operating in this territory.

Average Cost Of Power: $0.19/kWh, as of September 2025. This cost reflects the logistics of island energy production, which relies on a mix of petroleum, natural gas, and coal. While higher than mainland averages, it remains a predictable operational expense for the region.

Power Grid Reliability: The grid benefits from ongoing investments in redundant microgrids and multi-substation support. Facilities in major industrial areas utilize hardened infrastructure specifically built to maintain uptime during seasonal weather events.

Market Access, Business & Tax Climate

Puerto Rico provides a unique jurisdictional advantage for companies serving Latin America from a territory governed by United States laws.

Proximity To Key Business Districts: Most facilities are located near San Juan and Carolina. This provides immediate access to the Hato Rey financial district and key government offices, ensuring high-speed connections for local banking and commerce.

Regional Market Reach: This is the ideal staging point for reaching over 40 million residents across the Caribbean basin. It offers the lowest latency path for data traveling between the United States East Coast and South America.

Tax Advantage For Data Centers: The territory offers clean energy production tax credits applicable to data center electricity consumption. These incentives help lower the total cost of ownership by reducing effective utility expenses.

Natural Disaster Risk

The environmental profile of the island requires facilities to adhere to strict industrial building codes.

Risk Rubric: High (80th percentile), as of September 2025.

• Hurricanes: High Risk. Facilities are generally engineered to withstand Category 5 wind speeds.
• Tropical Cyclones: High Risk. Seasonal heavy rainfall and wind are standard considerations for site selection.
• Earthquakes: Moderate Risk. Seismic building codes are strictly enforced for all industrial assets on the island.
• Coastal Flood: Moderate Risk. This is a material concern for data centers located near the San Juan shoreline.

Other natural hazards are considered minor or are not listed for this region as of September 2025.