Data Centers in San Juan
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San Juan – Low-Cost Strategic Southern Caribbean Edge
Executive Summary
San Juan is the premier choice for organizations requiring a high-performance gateway to the Southern Caribbean and Northern South America without the premium price tag of mainland hubs. By leveraging some of the lowest power costs in the Western Hemisphere and protected tax status, this market provides a reliable edge for financial services and energy sector workloads. It is the logical jumping-off point for firms targeting the rapidly expanding economies of Guyana and Suriname.
San Juan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Resilient regional fiber links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Miami serves as the nearest hub. |
| Power Cost | $0.04/kWh – as of December 2024 | Natural gas fuels leading rates. |
| Disaster Risk | Low (3.0/10) – as of September 2025 | Purpose-built for regional hazards. |
| Tax Incentives | Yes | Exemptions valid through 2037. |
| Sales Tax | 12.5% VAT – as of September 2025 | Standard regional VAT. |
Network & Connectivity Ecosystem
San Juan operates as a specialized interconnection point, facilitating traffic between the Caribbean basin and major South American transit routes.
Carrier Density & Carrier Neutrality: Carrier count: over 5 as of September 2025. While the provider count is focused, the market maintains a reliable mix of local and international fiber providers that prioritize regional resilience and low-latency paths to Northern South America.
Direct Cloud On-Ramps: 0 as of September 2025, enabling access to 0 cloud regions locally. High-performance access to AWS, Google Cloud (GCP), and Microsoft Azure is typically achieved via the Miami hub. Private extension options like PNI or dedicated waves are the standard for maintaining performance.
Internet Exchange Points (IXPs): The Trinidad and Tobago Internet Exchange (TTIX) serves as the primary local hub, ensuring that local traffic remains within the country to reduce transit costs and improve response times for domestic users.
Bare Metal: General availability is provided through regional specialists such as Latitude.sh, allowing for rapid deployment of Caribbean-focused workloads without high initial capital requirements.
Power Analysis
Energy economics in San Juan represent a major competitive advantage for power-heavy deployments.
Average Cost Of Power: Industrial rates are approximately $0.04/kWh as of December 2024. This price point is significantly lower than neighboring island markets, where energy costs can often be triple this amount, providing a clear operational cost advantage for high-density compute.
Power Grid Reliability: The grid is primarily fueled by natural gas, which accounts for roughly 99% of generation as of December 2024. This reliance on domestic resources ensures a stable, baseload-heavy supply. Major data center corridors are supported by multi-substation redundancy to maintain uptime during industrial peaks.
Market Access, Business & Tax Climate
San Juan is positioned for businesses that need to balance Caribbean reach with a professional, industrial-grade business environment.
Proximity To Key Business Districts: Data center facilities are strategically located near the El Socorro industrial area. This provides immediate proximity to the commercial center of Port of Spain and major logistics hubs, serving the financial and energy sectors that anchor the local economy.
Regional Market Reach: This location serves as the primary infrastructure hub for the 1.4 million residents of Trinidad and Tobago. Furthermore, it provides the most effective coverage for the emerging markets in Guyana and Suriname, making it a natural choice for regional expansion.
Tax Advantage For Data Centers: The government provides data center specific sales tax exemption certificates for infrastructure investments. This financial benefit is extended through June 2037, offering long-term predictability for capital-intensive hardware refreshes.
Natural Disaster Risk
San Juan maintains a Low (3.0/10) risk profile as of September 2025. Infrastructure in this region is purpose-built to manage localized hazards through high engineering standards.
- Epidemic: 6.9/10 (Moderate)
- Earthquake: 5.8/10 (Moderate)
- Tropical Cyclone: 5.7/10 (Moderate)
- Drought: 2.8/10 (Low)
Other hazards, including river flooding and tsunamis, are considered minor or not listed for this metropolitan area as of September 2025. Facilities are typically situated above flood plains to mitigate risks from heavy seasonal rainfall, and coastal hazards are classified as indirect risks for the primary inland data center corridors.
