Data Centers in San Juan

San Juan – The Strategic Digital Bridge to the Caribbean

San Juan is the premier choice for enterprises requiring the legal protections of a United States jurisdiction combined with high-speed reach into Caribbean markets. It serves as the primary interconnection gateway where North American infrastructure meets regional demand, ensuring secure data sovereignty and low-latency access for high-stakes financial and telecommunications traffic.

San Juan: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 10. The market supports a concentration of local and international providers across seven major data centers, offering a resilient environment for regional peering as of September 2025.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. While direct native on-ramps are not physically present in the local market, high-capacity subsea links provide low-latency private extensions to major hubs in Miami. This allows for reliable connections to AWS and Google Cloud (GCP) resources within approximately 25 to 30 milliseconds as of September 2025.

Internet Exchange Points (IXPs): San Juan serves as a critical peering point for Caribbean traffic, utilizing local exchanges and Cable Landing Stations to keep regional data local rather than backhauling to the mainland.

Bare Metal: High-performance hardware is available via specialized regional providers and global players like Hivelocity, supporting low-latency applications at the edge as of September 2025.

Power Analysis

Average Cost Of Power: $0.19/kWh, as of September 2025. The energy mix relies on petroleum and natural gas, making energy-efficient infrastructure a priority for local operators. While island power grids are often an adventure, local data centers solve for this with more backup generation than many small towns.

Power Grid Reliability: Electrical infrastructure in major industrial corridors is purpose-built to support data center operations. Facilities typically employ heavy on-site generation and multi-substation support to ensure uptime during seasonal weather events as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near the Hato Rey financial district, known as the Golden Mile. This proximity is vital for the banking, insurance, and professional services sectors that require low-latency access to core processing systems.

Regional Market Reach: San Juan acts as a central distribution point for data services across the Caribbean. It serves a regional population of millions, providing a stable platform for content delivery and telecommunications.

Tax Advantage For Data Centers: Puerto Rico offers specific tax credits for clean energy production that directly lower the operational costs of electricity for qualifying data centers. These incentives help offset higher power rates and support the transition to more sustainable infrastructure as of September 2025.

Natural Disaster Risk

San Juan carries a High (82nd percentile) risk profile as of September 2025. The environment requires purpose-built facilities to manage specific regional hazards.

• Hurricane: High. The primary risk factor for the region, requiring Category 5 rated structures.
• Riverine Flooding: Moderate. Localized risk managed through site selection in elevated corridors.
• Earthquake: Moderate. Seismic activity is a factor in Caribbean tectonic zones.
• Landslide: Low. Primarily affects mountainous interior regions rather than coastal data center hubs.

Other hazards such as wildfires and extreme heat are considered minor or are not listed as material threats to local infrastructure as of September 2025.