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Data Centers in Miami

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Miami – Gateway to Latin America & the Southeast US

Executive Summary

Miami is the premier interconnection gateway between the United States and Latin America. Its unmatched subsea cable infrastructure makes it the critical choice for any business targeting markets in Central America, South America, and the Caribbean. This strategic location ensures the lowest possible latency for services delivered to millions of consumers and businesses across the Americas.

Miami: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Excellent international connectivity, especially to Latin America.
Direct Cloud On-RampsOver 1 – as of September 2025Direct access to AWS, Azure, Google Cloud (GCP), IBM Cloud.
Power Cost$0.06/kWh – as of February 2024Significantly below the US national average for industrial power.
Disaster RiskHigh (87.72) – as of September 2025Main risks are hurricane, riverine flooding, and strong winds.
Tax IncentivesYesMultiple state-level sales and ad valorem tax exemptions are available.
Sales Tax6.00% (Florida) – as of Midyear 2025State-level sales tax; local taxes may also apply.

Network & Connectivity Ecosystem

Miami’s connectivity is its defining feature, built on a dense foundation of international fiber. It functions as the digital crossroads for the Western Hemisphere.

Carrier Density & Carrier Neutrality With over 50 unique network providers present as of September 2025, the market offers exceptional choice. Competition among carriers in top facilities like the NAP of the Americas keeps interconnection costs competitive and provides redundant routing options.

Direct Cloud On-Ramps Over one direct cloud on-ramp is available in Miami, enabling low-latency access to 15 cloud regions as of September 2025. Local, private connections are available to major platforms including AWS, Google Cloud (GCP), Microsoft Azure, and IBM Cloud.

Internet Exchange Points (IXPs) The Florida Internet Exchange (FL-IX) is the primary public peering point in the region. It facilitates efficient traffic exchange between networks, reducing latency and transit costs for content and application providers serving the local and regional markets.

Bare Metal Bare metal server options are widely available from multiple providers in Miami. The market is well-served by providers like Hivelocity and phoenixNAP, offering dedicated compute for performance-intensive workloads.

Power Analysis

Average Cost Of Power The industrial power rate in the Miami area is approximately $0.06/kWh as of February 2024. This rate is substantially lower than the U.S. national average, offering a significant operating cost advantage for high-density deployments. The regional power mix is dominated by natural gas (74%) and nuclear (17%).

Power Grid Reliability The power grid serving the main data center clusters in Doral and downtown Miami is well-engineered to meet the demands of critical facilities. Major data centers are supported by redundant power feeds from separate substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located near downtown Miami’s financial district and the logistics hubs surrounding Miami International Airport. This proximity provides low-latency performance for banking, international trade, and media companies that are central to the city's economy.

Regional Market Reach Miami is the undisputed digital gateway to Florida's 22 million residents, the broader Southeastern United States, and over 650 million people in Latin America and the Caribbean. No other metro provides better network performance to this combined region.

Tax Advantage For Data Centers Florida offers several data center-specific tax exemptions. These incentives can eliminate the state sales tax on the purchase of equipment and waive ad valorem taxes on that gear, significantly reducing capital expenditures for new builds and expansions.

Natural Disaster Risk

Miami has a High natural disaster risk profile, with a FEMA National Risk Index score of 87.72 as of September 2025. This score reflects the region's exposure to specific, well-understood environmental threats.

The primary risks for data center operations are hurricanes and the associated high winds, storm surge, and potential for riverine flooding. Other significant risks for the region include lightning and tornadoes. Data centers in this market are purpose-built with hardened structures and sophisticated mitigation systems to withstand these specific threats.

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