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LATAM and Brazil market insights

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21 Nov 2024

Data centres in Brazil in 2025

Bill Yates
Data centres in Brazil in 2025

Brazil is the most prominent data centre hub in Latin America. As a giant internal market with a diverse economy, it offers huge demand for rack space and connectivity services, and the country’s position as the closest point to Europe and Africa also provides a vibrant subsea market to complement data centre construction.

Brazil is the most prominent data centre hub in Latin America. As a giant internal market with a diverse economy, it offers huge demand for rack space and connectivity services, and the country’s position as the closest point to Europe and Africa also provides a vibrant subsea market to complement data centre construction.

Alongside a huge population, Brazil’s data centre market is also driven by the country’s power mix. Clean energy, particularly hydroelectricity, meets a large share of Brazil’s power needs, and the country’s advanced dam and storage systems means this energy is available in reliable quantities around the year. There is also abundant wind power, which as Tecto Data Centers’ CEO Pedro Henrique points out is mostly available in the dry season – giving a valuable seasonal balance to the country’s energy supply.

Brazil’s electricity transmission network is also extensive, reliable and resilient, avoiding some of the problems seen in markets like the US where power can be generated but not distributed.

In terms of hubs, Sao Paulo is at the centre of the market both nationally and continentally. The city is considered (and listed as such in CBRE’s most recent Global Data Centre Trends analysis) one of the four main data centre markets in the continent, alongside Queretaro in Mexico, Santiago in Chile, and Bogotá in Colombia. This is reflected in facility numbers – there are 55 data centres in Sao Paulo and a further 15 in nearby Campinas.

The issue of space constraints has started to rear its head in the Paulistano data centre market, and this is driving the growth of other locations in Brazil. One of these is the capital Rio, which has 21 facilities and counting. There is also the burgeoning subsea hub of Fortaleza, where more and more facilities are taking advantage of proximity to subsea landing points given the city is the closest major American hub to Africa and Europe.

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