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Costa Rica has emerged as one of the most strategically positioned data center markets in Latin America. Its main attributes include legal security, political stability, and one of the world’s cleanest energy matrices.
The Costa Rica data center industry has grown due to the explosion of data demand across sectors, including cloud computing services, artificial intelligence, and big data analytics.
The global acceleration of artificial intelligence, cloud computing, and digital transformation continues to drive demand for scalable and resilient infrastructure. As hyperscale providers expand across emerging markets, countries like Costa Rica are gaining strategic relevance due to their stability, connectivity, and renewable energy matrix.
Data centers are essential for the smooth operation of a company’s technology and are responsible for storing important data and keeping it safe, whether for clients, partners, or the operation itself.
Due to divergent and rigid compliance regulations, as well as traditional tech hubs reaching their capacity limits, corporations and data center providers are looking to expand into different destinations, such as Latin America, Europe, and Asia-Pacific.
The data center industry in Latin America
Latin America is among the fastest-growing data center markets globally. Growth drivers include the implementation of 5G networks, private and public infrastructure investment, and the expansion of submarine cables connecting the region internationally.
Recent industry reports indicate that Latin America’s data center market continues to expand at double-digit growth rates, driven by hyperscale cloud providers, colocation demand, and artificial intelligence workloads. Investment in infrastructure across the region is expected to remain strong through 2030, with Central American markets increasingly positioned as strategic alternatives to traditional hubs like Brazil and Mexico.
Brazil remains a leading data center investment hub, with São Paulo serving as a central hotspot for facilities. Other key markets include Chile, Colombia, and Mexico.
In Central America, data localization regulations and compliance requirements are influencing infrastructure development, as governments strengthen frameworks related to data storage and digital operations.
Countries such as Costa Rica and Panama continue to increase their presence in the data center landscape, with facilities achieving Tier II and Tier III certifications and investing in infrastructure improvements to attract international business.end to expand even further in the region as countries continue to make investments in this area to attract global business.
Artificial Intelligence and Hyperscale Expansion in 2026
The rapid expansion of AI infrastructure is reshaping global data center investment. Capital expenditures for data center development have increased significantly as cloud providers invest in AI-ready facilities with higher power density and advanced cooling systems.
This global shift is creating opportunities for stable, well-connected markets like Costa Rica, particularly those capable of supporting renewable energy demand and long-term infrastructure growth.
The Costa Rica Data Center Industry: A Promising Hub
Costa Rica’s main attributes for the data center industry include legal security, political stability, and one of the world’s cleanest energy matrices.
The country consistently generates over 95% of its electricity from renewable sources such as hydro, wind, and geothermal power. Ongoing investments in grid modernization and energy resilience further support the long-term viability of energy-intensive operations such as data centers.
The expansion of Costa Rica’s data center market reflects both global digital demand and the country’s structural advantages.
As of April 2024, Costa Rica had seven data centers, six of which are located in the capital, San José, according to Data Center Map.
Expanding into markets such as Costa Rica allows companies to operate in less saturated hubs while still meeting rising power and connectivity requirements. The country offers available land for expansion, geographic proximity to the United States, and growing digital infrastructure.
Connectivity and Submarine Cable Infrastructure
Costa Rica’s digital infrastructure continues strengthening through submarine cable systems and regional connectivity upgrades that enhance international bandwidth and reduce latency with North and South America.
Improved connectivity increases reliability for cloud providers, enterprise services, and colocation operators — reinforcing the country’s appeal as a regional data center location.
Workforce aspects and nearshoring in Costa Rica
For many years, Costa Rica has implemented strategies to attract global investment and position itself as an ideal destination for international companies.
With coordinated efforts between public and private sectors, the country has consolidated itself as a preferred destination for multinational corporations across technology, advanced manufacturing, and life sciences.
Its proximity to the United States makes it especially attractive for nearshoring strategies. Costa Rica stands among the preferred Central American destinations for companies seeking operational stability and skilled technical talent.
The country has attracted global companies such as Microsoft and Intel, stimulating local talent development and strengthening the technology ecosystem.
Costa Rica ranks among the top-performing Latin American countries in education and continues investing in STEM (Science, Technology, Engineering, and Mathematics) skills development — a key factor supporting long-term data center operations and digital infrastructure growth.
Costa Rica vs Other LATAM Data Center Markets
| Factor | Costa Rica | Other LATAM Data Center Hubs |
|---|---|---|
| Renewable Energy % | >95% Renewable | Varies by country |
| Submarine Connectivity | New cable expansion | Existing but no new upgrades |
| Political Stability | High | Medium–High |
| Workforce | Skilled technical labor | Varies |
Options for hiring and building Costa Rica data centers
Companies entering the Costa Rica data center market have several options depending on operational needs, scalability expectations, and regional experience.
Large multinational corporations often establish local legal entities. However, this process can involve regulatory complexity and administrative burdens, particularly for companies without global HR infrastructure.
Some organizations pursue acquisitions of smaller local firms to accelerate entry into the market.
Alternatively, companies can ensure compliance and operational efficiency through Employer of Record (EOR) solutions. These providers manage hiring, payroll, and employee administration on behalf of international clients.
Such solutions offer a streamlined, cost-effective, and time-efficient pathway to entering the Costa Rica data center industry while maintaining legal compliance. Many recruitment and onboarding processes can be conducted remotely, accelerating operational readiness.
There are significant opportunities to participate in the growth of the Costa Rica data center sector in a way that is safe, compliant, and scalable.
Expanding Operations in Costa Rica?
If your company is exploring technology infrastructure expansion or planning to build technical teams to support data center operations in Costa Rica, understanding the local regulatory and labor landscape is essential.
At Serviap Global, we help international companies hire, manage, and scale teams in Costa Rica and across LATAM — compliantly and efficiently.
FAQs About Costa Rica Data Centers
1. Is Costa Rica a good location for data centers in 2026?
Yes. Costa Rica combines renewable energy availability, political stability, improving connectivity, and a strong regulatory framework, making it increasingly attractive for regional data center investment.
2. What makes Costa Rica competitive compared to other LATAM markets?
Its renewable energy matrix, free-trade zones, strategic geographic location, and growing digital infrastructure give it a competitive edge.
3. Does renewable energy benefit data center operators?
Yes. Renewable energy supports ESG objectives and sustainability targets, which are increasingly important for global cloud providers and enterprise clients.
