Data Centers in San Juan

San Juan – Strategic Caribbean & Latin American Hub

San Juan is a key digital gateway connecting North and Latin America. For businesses requiring resilient infrastructure to serve Caribbean, Central, and South American markets, San Juan's data centers offer a strategic base to reduce latency and improve application performance across the region.

San Juan: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: San Juan is served by over 2 providers as of September 2025. The market benefits from significant subsea cable landings, providing robust international connectivity, with most colocation facilities offering carrier-neutral access.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Puerto Rico as of September 2025. Businesses connect to cloud providers via private network extensions or IP transit to major hubs like Miami, which offers direct access to all major cloud regions.

Internet Exchange Points (IXPs): The primary exchange is the Puerto Rico Bridge Initiative (PRBI), which facilitates local traffic exchange and improves network performance within the island. Most large-scale international peering occurs in Miami.

Bare Metal: Bare metal server options are available from providers that can service the region. Global providers like Hivelocity and Latitude.sh can offer compute solutions for workloads in San Juan.

Power Analysis

Average Cost Of Power: Industrial power costs are approximately $0.19/kWh as of 2022. This rate is considerably higher than on the US mainland, which can impact total operating costs for high-density deployments. The power mix is primarily petroleum (62%) and natural gas (24%).

Power Grid Reliability: The local power grid has faced reliability challenges historically. Consequently, data centers in San Juan are engineered with significant redundancy, including N+1 or 2N UPS systems and extensive on-site fuel storage for backup generators to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the San Juan metro area are strategically located to serve the island's primary commercial, financial, and government centers. This supports low-latency performance for local enterprises in finance, healthcare, and tourism.

Regional Market Reach: San Juan is an excellent hub for serving digital consumers and businesses throughout the Caribbean basin and parts of Latin America. Its unique geographic position and connectivity infrastructure make it a vital link between continents.

Tax Advantage For Data Centers: Puerto Rico provides tax incentives, including clean energy tax credits that can lower the electricity costs for data centers. These programs are designed to encourage investment in sustainable and efficient digital infrastructure on the island.

Natural Disaster Risk

Based on regional data as of September 2025, San Juan carries a moderate risk profile for natural disasters. While specific FEMA data was not provided, the area is known to be exposed to several significant environmental hazards.

Key risks include:

• Hurricane: High risk due to its location in the Atlantic hurricane belt.
• Earthquake: Moderate to High risk, as Puerto Rico is located near an active tectonic plate boundary.
• Coastal Flooding: Moderate risk for low-lying areas, often associated with storm surge from hurricanes.
• Tsunami: Low but present risk following significant seismic activity in the region.