Data Centers in San Juan
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San Juan, Trinidad and Tobago – A Strategic Caribbean Hub
San Juan, Trinidad and Tobago, offers a unique combination of extremely low energy costs and compelling tax incentives for data center operators. This emerging market is a strong candidate for businesses targeting the southern Caribbean and South America, particularly for disaster recovery and service delivery applications where minimizing operational expense is critical. Its stable risk profile further enhances its appeal for long-term digital infrastructure investments.
San Juan, Trinidad and Tobago: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good international connectivity, primarily serving the local and regional Caribbean market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connectivity to major clouds is routed through hubs like Miami via private network extensions. |
| Power Cost | $0.04/kWh – as of Dec 2024 | Among the lowest industrial power rates in the region, driven by natural gas. |
| Disaster Risk | Low (3.0/10) – as of September 2025 | Primary risks are tropical cyclones and earthquakes, but overall exposure is low. |
| Tax Incentives | Yes | DC-specific sales tax exemptions are available, offering significant operational savings. |
| Sales Tax | 12.5% VAT – as of September 2025 | Standard value-added tax; specific exemptions for data center equipment apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a developing market, San Juan offers access to a focused group of regional and international carriers, as of September 2025. While carrier density is not as high as in major international hubs, neutral colocation facilities provide access to key networks serving the Caribbean.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Trinidad and Tobago, as of September 2025. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure through network providers offering private links to interconnection hubs, primarily in Miami.
Internet Exchange Points (IXPs): Public peering is limited. Most traffic exchange occurs privately between providers or is routed through major exchange points in the United States. This structure is common in markets of this size.
Bare Metal: Bare metal server options are available from providers that specialize in delivering services to emerging markets. Companies like Hivelocity can offer dedicated server solutions to establish a physical presence without significant capital investment.
Power Analysis
Average Cost Of Power: The average industrial electricity cost is exceptionally low at $0.04/kWh, as of December 2024. This price point, one of the most competitive in the Americas, is a direct result of the country's abundant natural gas reserves, which generate nearly all of its power. This creates a substantial operating cost advantage for high-density computing.
Power Grid Reliability: The national power grid is reliable for commercial and industrial use. Data centers in the market are built with standard redundancies, including UPS and generator backup, to ensure uptime consistent with industry expectations. The grid's reliance on a single primary fuel source is a factor in long-term planning.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the San Juan area are strategically located to serve the primary commercial and industrial centers of Trinidad, including Port of Spain. This proximity allows for low-latency connections for financial services, energy companies, and government agencies.
Regional Market Reach: Trinidad and Tobago serves as an effective digital hub for the southern Caribbean. Its location provides a good base for reaching nearby island nations and the northern coast of South America, including Guyana and Suriname.
Tax Advantage For Data Centers: Trinidad and Tobago offers significant financial incentives. A key benefit is the long-term sales tax exemption on data center equipment, which has been extended to 2037. This government support directly reduces the capital expenditure required to build and refresh technology infrastructure.
Natural Disaster Risk
Trinidad and Tobago has a Low overall natural disaster risk profile, with an INFORM score of 3.0 out of 10, as of September 2025. While the overall risk is low, operators should engineer facilities to mitigate specific, moderate threats.
The primary natural hazards include:
- Earthquake: The most significant risk factor for the islands.
- Tropical Cyclone: The country is south of the main hurricane belt but can still be affected by major storms.
- Coastal Flooding: A consideration for any facility located in low-lying coastal areas.
- Drought: A less direct, but relevant, environmental risk for the region.
