Proprietary data
Data Center Power & Policy in Panama
Every government action on data centers and power in Panama that we have verified: moratoriums, grid rules, incentives, tariffs and plans, with the power indicators that drive site selection.
By Amit Jain
Reviewed by Deepti Agrawal
Updated 20 October 2026
In short
As of 20 October 2026, DC Market Insights tracks 10 government actions on data centers and power in Panama, 9 of them in force. We have found no moratorium or restriction on new data centers in force in Panama. 1 incentive scheme applies: Law 32 of 5 April 2011: Free Zones regime, data centers an eligible high-technology category.
Market snapshot
Panama power and policy: key facts
- Industrial electricity price: 66.3 USD/MWh (2025). Rank 20 of 23 tracked countries, highest first.
- Renewable share of electricity generation: 74.7% (2025). Rank 4 of 34 tracked countries, highest first.
- Grid emission factor: 0.15 kgCO2/kWh (2024). Rank 22 of 28 tracked countries, highest first.
- Latest change: ASEP Resolutions AN 21990-Elec and AN 21991-Elec: distribution tariff schedules 1 Sep 2026 – 31 Aug 2030 (ASEP, 19 Aug 2026).
- By type: 3 regulation, 2 plan or strategy, 2 renewable energy and 1 power tariff.
Power indicators for Panama
Latest official figure for each indicator, with earlier years where we have them.
In force now in Panama
Grid access (1)
ASEP Distribution and Commercialization Regulation, Title II Art. 5: large-customer threshold of 100 kW
Using its power under Law 6 of 1997, ASEP lowered the large-customer threshold to demand above 100 kW per interconnection point or site. Any user above this level, which covers practically every data center, can leave the regulated tariff and contract supply directly with generators or buy in the wholesale spot market. Further changes to the threshold are made at the four-yearly tariff reviews or when distribution concessions are renewed.
100 kW Date is ASEP Res. AN 5910-Elec (23 Jan 2013), which quotes Art. 5; the current RDC Title II text with the same rule is at https://www.asep.gob.pa/wp-content/uploads/electricidad/tarifas/07_reglamentos_normas/reglamento_distribucion_comercializacion/titulo
Power tariff (1)
ASEP Resolutions AN 21990-Elec and AN 21991-Elec: distribution tariff schedules 1 Sep 2026 – 31 Aug 2030
On 19 Aug 2026 ASEP approved the distribution and commercialization tariff schedules (pliegos tarifarios) of ENSA (AN 21990-Elec) and EDEMET and EDECHI (AN 21991-Elec, G.O. 30595 B of 21 Aug 2026) for a new four-year period from 1 Sep 2026 to 31 Aug 2030. From 1 Sep 2026 the medium-voltage demand tariff (MTD) charges 0.145-0.162 USD/kWh plus 15-26 USD/kW-month of maximum demand, depending on the distributor.
Incentive (1)
Law 32 of 5 April 2011: Free Zones regime, data centers an eligible high-technology category
The free-zone law lists the types of company that may set up in a free zone. Category 4, high-technology company, expressly includes data processing and storage centres (data centers), and category 7, services company, covers telecom and computer services for data capture, processing, storage and transmission. Data centers can therefore operate under the free-zone tax and customs regime, licensed through MICI.
Renewable energy (2)
Law 37 of 10 June 2013: solar plant incentive regime (amended by Laws 38/2016 and 417/2023), equipment list updated March 2026
Incentive regime for building, operating and maintaining solar plants and installations, with no quantity limit, including a customs exemption on listed solar equipment (Art. 20). On 12 Mar 2026 the National Energy Secretariat and MEF approved a new list of eligible equipment and accessories (Res. MIPRE-2026-0008960, GO 30481-A), replacing the January 2025 list. Supports on-site or contracted solar for data centers.
Law 45 of 4 August 2004: incentives for hydro and other new, renewable and clean generation
Gives hydro, geothermal and other new renewable plants an import duty and ITBMS exemption on equipment and a tax credit of up to 25% of direct investment, based on CO2 avoided, usable against income tax for 10 years. Plants of 10-20 MW pay no distribution or transmission charges on the first 10 MW for 10 years, and plants up to 10 MW may sell directly to distributors. Relevant to contracted or own renewable supply for data centers.
25 % of direct investment (maximum fiscal i
Regulation (3)
Resolution MIPRE-2025-0030765: official baseline grid emission factor of the national power system (2024)
The National Energy Secretariat set official grid emission factors for environmental assessment, energy planning, GHG inventories and decarbonisation strategies. For 2024 data: inventory (carbon footprint) factor 0.1501 tCO2/MWh; CDM combined margin 0.4438 tCO2/MWh for conventional projects and 0.4932 for wind and solar. Published in GO 30348 on 21 Aug 2025. A 2025 update (Res. MIPRE-2026-0031065, GO 30586, Aug 2026) exists but was not readable.
0.15 tCO2/MWh (inventory factor, 2024)
Law 81 of 26 March 2019 on personal data protection: cross-border storage and transfer
Databases located in Panama, or whose controller is domiciled there, fall under the law. Cross-border storage or transfer of confidential, sensitive or restricted personal data that originated or is stored in Panama is allowed only if the custodian meets the law's protection standards or equivalent or higher ones, with exceptions such as consent, contract necessity and treaty obligations. ANTAI supervises. The law took effect two years after promulgation (March 2021) and is regulated by Executive Decree 285 of 2021. No general data-localization rule.
Law 6 of 1997: electricity sector regulatory and institutional framework (single text ordered by Law 194 of 2020)
Panama's electricity framework law sets the regime for generation, transmission, distribution and sale, gives ETESA the expansion plan and long-term supply contracting, and creates the wholesale market agents. Large customers (grandes clientes) may contract their supply freely with other market agents; the law sets the threshold at a maximum demand above 500 kW per site and lets the regulator ASEP lower it. A single consolidated text was gazetted on 7 Jul 2021 (GO 29325-A).
500 kW (statutory large-customer threshold)
Plan or strategy (1)
Energy Transition Agenda 2020-2030: strategic guidelines (Cabinet Resolution 93 of 24 Nov 2020)
The Cabinet approved the strategic guidelines of the Energy Transition Agenda 2020-2030 on 24 Nov 2020. They aim to attract investment to the power sector, improve competitiveness, extend electrification and back renewables and a modern, smart distribution grid. Gazette text (GO 29163-B) not retrievable; source is press.
Announced and proposed
Measures that are not yet in force. Status changes when the rule takes effect or is withdrawn.
National AI Strategy (SENACYT): sustainable zones for data centers and sovereign compute
SENACYT's AI strategy presentation proposes, under an energy-sovereignty pillar, grid reinforcement without passing costs to other consumers and territorial planning of sustainable zones for data centers with simpler permitting, access to infrastructure and safeguards against speculative capacity reservations. It also proposes backup power and water reservoirs for AI infrastructure while protecting water for people and Canal operations, a sovereign cloud and Tier III/IV commercial data centers. No Cabinet resolution or gazette text found.
Timeline of data center and power policy in Panama
| Date | Action | Type | Status | Authority |
|---|---|---|---|---|
| 19 Aug 2026 | ASEP Resolutions AN 21990-Elec and AN 21991-Elec: distribution tariff schedules 1 Sep 2026 – 31 Aug 2030 | Power tariff | In force | ASEP |
| 1 Aug 2026 | National AI Strategy (SENACYT): sustainable zones for data centers and sovereign compute | Plan or strategy | Proposed | SENACYT (National Secretariat of Science, Technology and Innovation) |
| 20 Aug 2025 | Resolution MIPRE-2025-0030765: official baseline grid emission factor of the national power system (2024) | Regulation | In force | National Energy Secretariat |
| 24 Nov 2020 | Energy Transition Agenda 2020-2030: strategic guidelines (Cabinet Resolution 93 of 24 Nov 2020) | Plan or strategy | In force | Cabinet Council; National Energy Secretariat |
| 26 Mar 2019 | Law 81 of 26 March 2019 on personal data protection: cross-border storage and transfer | Regulation | In force | National Assembly; ANTAI (supervisor) |
| 10 Jun 2013 | Law 37 of 10 June 2013: solar plant incentive regime (amended by Laws 38/2016 and 417/2023), equipment list updated March 2026 | Renewable energy | In force | National Assembly; National Energy Secretariat; Ministry of Economy and Finance |
| 23 Jan 2013 | ASEP Distribution and Commercialization Regulation, Title II Art. 5: large-customer threshold of 100 kW | Grid access | In force | ASEP (Autoridad Nacional de los Servicios Publicos) |
| 5 Apr 2011 | Law 32 of 5 April 2011: Free Zones regime, data centers an eligible high-technology category | Incentive | In force | Ministry of Commerce and Industries (MICI); National Free Zones Commission |
| 4 Aug 2004 | Law 45 of 4 August 2004: incentives for hydro and other new, renewable and clean generation | Renewable energy | In force | Legislative Assembly |
| 3 Feb 1997 | Law 6 of 1997: electricity sector regulatory and institutional framework (single text ordered by Law 194 of 2020) | Regulation | In force | National Assembly; ASEP (regulator) |
How Panama compares
Latest official figures for the countries we track.
| Country | Industrial power price | Renewable share | Grid emission factor | Restrictions in force | Incentives in force |
|---|---|---|---|---|---|
| Argentina | — | 19.6% (2025) | 0.28 kgCO2/kWh (2022) | 0 | 2 |
| Australia | — | 39% (2025) | — | 0 | 2 |
| Bangladesh | — | 2% (2025) | — | 0 | 0 |
| Belgium | 183 USD/MWh (2025) | 34.3% (2025) | 0.19 kgCO2/kWh (2024) | 0 | 0 |
| Brazil | — | 86.8% (2025) | 0.07 kgCO2/kWh (2025) | 0 | 1 |
| Canada | — | 63.9% (2024) | 0.10 kgCO2/kWh (2022) | 2 | 0 |
| Chile | — | 66% (2025) | 0.24 kgCO2/kWh (2023) | 0 | 0 |
| Colombia | — | — | 0.22 kgCO2/kWh (2024) | 0 | 2 |
| Denmark | 134 USD/MWh (2025) | 81.5% (2024) | 0.11 kgCO2/kWh (2024) | 1 | 0 |
| Ecuador | — | — | 0.16 kgCO2/kWh (2024) | 1 | 0 |
| Finland | 58.4 USD/MWh (2025) | 57% (2024) | 0.03 kgCO2/kWh (2025) | 0 | 0 |
| France | 104 USD/MWh (2025) | 27% (2025) | 0.02 kgCO2/kWh (2025) | 0 | 1 |
| Germany | 180 USD/MWh (2025) | 58.8% (2025) | 0.34 kgCO2/kWh (2025) | 1 | 0 |
| Guatemala | 84.5 USD/MWh (2025) | 53.5% (2024) | 0.29 kgCO2/kWh (2024) | 0 | 2 |
| India | 82.1 USD/MWh (2025) | 28.7% (2026) | 0.68 kgCO2/kWh (2025) | 0 | 5 |
| Indonesia | 62.9 USD/MWh (2024) | 16.3% (2025) | 0.68 kgCO2/kWh (2024) | 0 | 1 |
| Ireland | 234 USD/MWh (2025) | 41.3% (2024) | 0.20 kgCO2/kWh (2025) | 2 | 0 |
| Italy | 184 USD/MWh (2025) | 48% (2025) | 0.20 kgCO2/kWh (2025) | 0 | 0 |
| Japan | — | 23.1% (2024) | 0.45 kgCO2/kWh (2024) | 0 | 0 |
| Kazakhstan | — | 14.6% (2025) | 0.81 kgCO2/kWh (2025) | 0 | 0 |
| Kyrgyzstan | 41.7 USD/MWh (2026) | 88% (2024) | 0.16 kgCO2/kWh (2019) | 1 | 1 |
| Luxembourg | 165 USD/MWh (2025) | 23.3% (2025) | — | 0 | 0 |
| Malaysia | 105 USD/MWh (2026) | 21% (2025) | 0.74 kgCO2/kWh (2024) | 1 | 1 |
| Mexico | — | — | 0.44 kgCO2/kWh (2023) | 0 | 0 |
| Nepal | — | — | — | 0 | 0 |
| Netherlands | 148 USD/MWh (2025) | 49% (2025) | 0.20 kgCO2/kWh (2024) | 4 | 0 |
| Pakistan | 97.5 USD/MWh (2026) | 34.7% (2025) | — | 0 | 1 |
| Panama | 66.3 USD/MWh (2025) | 74.7% (2025) | 0.15 kgCO2/kWh (2024) | 0 | 1 |
| Peru | — | 62.6% (2025) | — | 0 | 1 |
| Russia | — | 17.6% (2025) | — | 2 | 0 |
| Singapore | 189 USD/MWh (2025) | 2.1% (2024) | 0.40 kgCO2/kWh (2024) | 0 | 0 |
| South Korea | — | 9.8% (2025) | — | 0 | 0 |
| Spain | 113 USD/MWh (2025) | 55.5% (2025) | — | 0 | 0 |
| Sri Lanka | — | 60.2% (2025) | — | 0 | 0 |
| Sweden | 78.5 USD/MWh (2025) | — | 0.06 kgCO2/kWh (2023) | 0 | 0 |
| United Arab Emirates | 120 USD/MWh (2026) | 8.8% (2024) | 0.47 kgCO2/kWh (2024) | 0 | 0 |
| United Kingdom | 234 USD/MWh (2026) | 52.1% (2025) | 0.15 kgCO2/kWh (2026) | 1 | 1 |
| United States | 86.2 USD/MWh (2025) | 24% (2025) | 0.35 kgCO2/kWh (2023) | 0 | 1 |
| Uzbekistan | 83.3 USD/MWh (2026) | 19.4% (2025) | — | 1 | 0 |
Questions
Is there a data center moratorium in Panama?
We have found no moratorium or restriction on new data centers in force in Panama as of 20 October 2026. Proposed or announced measures, if any, are listed in the timeline.
What incentives does Panama offer data centers?
In force: Law 32 of 5 April 2011: Free Zones regime, data centers an eligible high-technology category. Each is listed with its authority and dates on this page.
What does electricity cost for data centers in Panama?
The industrial electricity price in Panama was 66.3 USD/MWh in 2025 (Annual average price of the wholesale occasional (spot) market, B/. 66.33/MWh (balboa at par with USD). A wholesale energy proxy for large customers (>100 kW) buying on the spot market; excludes transmission, distribution and capacity charges. Retail MTD ). Data center contracts can differ by voltage level, contract length and location.
How much of Panama’s electricity is renewable?
Renewables supplied 74.7% of electricity generation in Panama in 2025.
Where does this data come from?
Each action comes from a page we opened: a law, regulation, gazette notice, ministry or regulator release, grid operator notice or investment agency page, and only when official text is not available a company or trade publication. A second analyst re-opens the source before an item is published. Government sources are linked on the page; all sources come with the Excel data.
What counts as a restriction or moratorium?
A government or grid operator rule that stops, pauses, caps or conditions new data center capacity or grid connections, for a country or a region within it. Proposals are shown as proposed until they take effect.
How are power prices compared?
We use each country’s official statistics for industrial or non-household electricity, converted to US dollars per MWh at the average rate for the year where needed, and show the year and source. Contract prices for data centers can differ.
How often is it updated?
Countries are reviewed on a rolling schedule and changes are added as they are announced. Each item shows the date of the action.
Global capacity
How much data center capacity is installed worldwide?
Installed and forecast capacity in MW by region and country, 2020 to 2035, with low, base and high cases. Updated every quarter.
Choosing a market or a site?
Our analysts prepare country briefings on power, grid access, incentives and permits, with every source, in Excel.