Data Centers in Trinidad and Tobago
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Trinidad and Tobago – A Strategic Digital Bridge to the Caribbean
Executive Summary
Trinidad and Tobago serves as a critical gateway for enterprises requiring high-uptime digital infrastructure within the Southern Caribbean and Latin American markets. Its combination of industrial-grade energy pricing and specialized tax incentives makes it a strategic choice for regional disaster recovery and low-latency financial services.
Trinidad and Tobago: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional performance via multiple subsea cable landings. |
| Direct Cloud On-Ramps | 0 – as of December 2024 | Nearest major hub is Miami; private extension options available. |
| Power Cost | $0.04/kWh – as of December 2024 | Highly competitive rates driven by domestic natural gas. |
| Disaster Risk | Low (3.0/10) – as of September 2025 | Risk is well-managed, though seismic activity remains a factor. |
| Tax Incentives | Yes – as of September 2025 | Sales tax exemption certificates for data centers valid to 2037. |
| Sales Tax | 12.5% VAT – as of September 2025 | Standard rate applies to most commercial services and hardware. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of December 2024, the market features a mix of regional incumbents and specialized fiber providers across four primary data centers. While the carrier count is specialized, the existing competition ensures resilient connectivity for local and international traffic.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. As of December 2024, there are no native cloud on-ramps in the country. Enterprises typically connect via private wave or PNI to Miami-based hubs. This allows for reliable access to major global cloud platforms without requiring a physical presence in those locations.
Internet Exchange Points (IXPs): The Trinidad and Tobago Internet Exchange (TTIX) facilitates local traffic exchange, keeping domestic data within the country and reducing latency for local users. This is essential for high-performance applications and reducing dependency on international transit.
Bare Metal: General availability is supported by regional players and local providers. Global specialized providers like Latitude.sh or Hivelocity can often be reached via nearby regional hubs or partner networks to provide flexible compute options without the overhead of colocation management.
Power Analysis
Average Cost Of Power: The cost of electricity is approximately $0.04/kWh, as of December 2024. This pricing is among the lowest in the Caribbean, providing a significant operational advantage for power-hungry compute loads. The mix is nearly 99% fossil fuels, predominantly natural gas, which keeps costs predictable compared to oil-dependent neighbors.
Power Grid Reliability: The grid is primarily fueled by natural gas, resulting in a stable and redundant supply for industrial corridors. Major data centers use dedicated substation feeds to ensure consistent delivery, and the local utility has experience managing heavy industrial loads from the energy sector.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are concentrated near Port of Spain, San Juan, and San Fernando. This proximity provides low-latency access to the energy, finance, and government sectors, which are the primary drivers of the local economy.
Regional Market Reach: Trinidad and Tobago acts as a logical gateway for serving the CARICOM region and northern South America. Its location south of the main hurricane belt makes it a safer choice for regional disaster recovery and backup operations compared to other Caribbean islands.
Tax Advantage For Data Centers: The government offers specific fiscal support to encourage digital infrastructure development through long-term financial advantages. These include specialized sales tax exemption certificates for data center equipment that remain valid through 2037.
Natural Disaster Risk
Low (3.0/10) – overall INFORM risk as of September 2025. The most prominent natural hazards for the islands include:
- Earthquake (5.8): Moderate seismic activity is a primary consideration for structural engineering in the region.
- Tropical Cyclone (5.7): Seasonal storm risk requires resilient facility engineering, though the location is technically south of the most frequent storm paths.
- Drought (2.8): A minor factor for cooling operations that is managed through local water storage.
- Coastal Flood (2.7): A regional risk factor; however, most primary facilities are located in protected or elevated zones to mitigate surge impact.
Other hazards such as river flooding and tsunamis are considered minor or not material threats to the local infrastructure.
