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 compelling combination of extremely low power costs and significant tax incentives, making it a prime location for companies targeting the southern Caribbean and northern South America. This market is well-suited for disaster recovery, content delivery, and latency-sensitive applications serving the region. Its infrastructure provides a reliable platform for businesses looking to establish a strategic digital foothold with a clear financial advantage.
San Juan, Trinidad and Tobago: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid Caribbean connectivity hub with good subsea cable access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Cloud access is via network extension to Miami. Private connectivity is available. |
| Power Cost | $0.04/kWh – as of Dec 2024 | Among the lowest power costs in the Americas, a major operational advantage. |
| Disaster Risk | Low (3/10) – as of September 2025 | Low overall composite risk score, with manageable specific hazards like cyclones. |
| Tax Incentives | Yes | DC-specific sales tax exemptions are available and extended to June 30, 2037. |
| Sales Tax | 12.5% VAT – as of September 2025 | The standard value-added tax rate applied to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has a developing carrier ecosystem, with at least one carrier-neutral facility providing access to key regional and international providers, as of September 2025. This ensures competitive connectivity options for colocation customers.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Trinidad and Tobago, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network Points of Presence (PoPs), with the primary interconnection hub being Miami, Florida. Private network links can be established to ensure secure, low-latency access.
Internet Exchange Points (IXPs) The primary local exchange is the Trinidad and Tobago Internet Exchange (TTIX), which facilitates local traffic peering to improve performance and reduce latency for domestic users. Most international traffic is routed through major hubs in the United States.
Bare Metal Bare metal server options are available, typically through regional providers or by placing customer-owned hardware in a colocation facility. Providers like Hivelocity can serve the region from nearby strategic locations, offering dedicated compute for performance-intensive workloads.
Power Analysis
Average Cost Of Power The industrial electricity rate is exceptionally low, averaging approximately $0.04/kWh, as of December 2024. This highly competitive pricing, driven by the nation's natural gas resources, creates a significant operational cost advantage for high-density deployments. The grid is almost entirely powered by fossil fuels.
Power Grid Reliability The power grid serving the primary commercial and data center corridors is reliable. Colocation facilities are built with significant redundancy, including multi-substation support, on-site fuel storage, and multiple UPS and generator systems to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in the San Juan area are strategically located to serve the nearby capital, Port of Spain, which is the country's primary financial, commercial, and government hub. This proximity provides low-latency connectivity for the nation's core economic sectors.
Regional Market Reach Trinidad and Tobago serves as an excellent digital gateway to the southern Caribbean islands and the emerging markets of northern South America, including Guyana and Suriname. Its location and subsea cable connectivity make it ideal for content distribution and regional application hosting.
Tax Advantage For Data Centers The government offers a powerful tax incentive specifically for data center operators and tenants. A sales tax exemption certificate program, extended through June 2037, eliminates this tax on equipment and operational expenses, directly reducing capital and operating expenditures.
Natural Disaster Risk
Trinidad and Tobago has a low overall disaster risk profile, with an INFORM Risk score of 3 out of 10, as of September 2025. While the overall risk is low, operators must engineer facilities to mitigate specific, moderate threats.
Key natural hazards include:
- Earthquake Risk: The highest individual risk factor (5.8/10), requiring facilities to be built to modern seismic standards.
- Tropical Cyclone Risk: A notable concern (5.7/10), as the islands are located in the hurricane belt.
- Coastal Flood Risk: A secondary risk (2.7/10) for facilities in low-lying areas.
- Drought Risk: A minor concern (2.8/10) that can impact water resources for cooling.
The risk from river floods and tsunamis is rated as negligible (0/10).
