Data Centers in San Juan
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San Juan, Trinidad and Tobago – A Resilient Caribbean Hub
San Juan offers a stable and cost-effective location for deploying digital infrastructure in the Southern Caribbean. For businesses targeting Trinidad and Tobago's energy, finance, and manufacturing sectors, the market provides extremely low power costs and significant tax incentives, creating a compelling financial case for colocation and disaster recovery sites.
San Juan, Trinidad and Tobago: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity for regional business operations. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is primarily via Miami, FL. Private network extensions are available. |
| Power Cost | $0.04/kWh (Industrial) – as of Dec 2024 | Among the lowest in the Americas, powered almost entirely by natural gas. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are tropical cyclones and earthquakes; other natural hazards are minimal. |
| Tax Incentives | Yes | Data center sales tax exemptions are extended through June 2037. |
| Sales Tax | 12.5% VAT – as of September 2025 | Standard value-added tax applies to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a key commercial hub, the market provides access to a range of local and regional carriers, as of September 2025. Data centers in the area offer connections to the primary fiber optic submarine cables landing in Trinidad, ensuring redundant pathways off the island.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major hyperscalers, as of September 2025. Secure, private connections to cloud providers are established via network links to major interconnection hubs, primarily Miami.
Internet Exchange Points (IXPs): The Trinidad and Tobago Internet Exchange (TTIX) is the primary IXP, facilitating local traffic exchange between service providers. This improves local latency and reduces transit costs by keeping domestic traffic within the country.
Bare Metal: Bare metal server options are available through providers that can deploy equipment within the region. Services from global providers like Hivelocity or Latitude.sh can be configured for Caribbean workloads.
Power Analysis
Average Cost Of Power: The industrial electricity rate is exceptionally low at approximately $0.04/kWh, as of December 2024. This price point, driven by abundant domestic natural gas, offers a significant operational cost advantage compared to nearly any other market in the Americas.
Power Grid Reliability: The power grid, managed by the Trinidad and Tobago Electricity Commission (T&TEC), is generally stable in the commercial corridors around San Juan. Data centers utilize standard N+1 or 2N UPS systems and diesel generators to guarantee uptime during any potential utility disruptions.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in and around San Juan are well-positioned to serve the nation's economic centers, including Port of Spain. This proximity provides low-latency connectivity for the country's robust financial services, government, and energy sectors.
Regional Market Reach: Trinidad and Tobago serves as a strategic point of presence for reaching the Southern Caribbean and the northern coast of South America. Its stable economy makes it a suitable hub for regional business continuity and disaster recovery operations.
Tax Advantage For Data Centers: The government offers substantial tax incentives for technology investments. A key benefit is the sales tax exemption for data center equipment, which has been extended to 2037, directly reducing the capital expenditure required for new deployments or hardware refreshes.
Natural Disaster Risk
Trinidad and Tobago has a low overall natural disaster risk profile, with an INFORM Risk score of 3 out of 10, as of September 2025. While the overall risk is low, specific hazards warrant consideration for infrastructure planning.
The most significant environmental threats are:
- Earthquake Risk (5.8/10)
- Tropical Cyclone Risk (5.7/10)
- Drought Risk (2.8/10)
- Coastal Flood Risk (2.7/10)
Risks from river flooding and tsunamis are rated as nonexistent. The country's location in the southern Caribbean places it outside the principal hurricane development track, though tropical storms remain a factor.
