SAO PAULO (Reuters) – Brazil is rapidly emerging as a major data center hub, with billions of dollars in investments expected in the coming years. The increase is largely attributed to the exponential rise of artificial intelligence and growth constraints in larger markets in the US and Europe.
Some companies investing in the sector in the country are:
ASCENCE
With 34 data centers operating or under construction in Latin America, the company is looking for a minority partner to finance further expansion, especially in Brazil. Ascenty is controlled by global investment firm Brookfield Asset Management and US-based Digital Realty.
GRUPO FS
Brazilian cybersecurity company Grupo FS is making its debut in the data center sector with plans to invest US$1.8 billion ($300 million) in establishing three data centers in Brazil. According to owner Alberto Leite, the country’s political stability, renewable energy sources and growing local demand are key positive factors driving this investment.
EQUINIX
Equinix, a global digital infrastructure company, is expanding in the states of São Paulo and Rio de Janeiro, said Eduardo Carvalho, general manager of Latin America for the company founded in Silicon Valley in 1998.
ODATA
ODATA, acquired by Aligned Data Centers in 2023, is also steadily expanding due to growing demand in Brazil. The states of Rio de Janeiro and São Paulo are important areas for investment, says Fernando Jaeger, director of new businesses. ODATA also operates data centers in Chile, Colombia and Mexico, and recently expanded its portfolio to the US through its acquisition by Aligned.
TECTO
Tecto, the data center business unit of V.tal, controlled by Brazilian bank BTG, announced earlier this week that it has acquired new land in the state of São Paulo for the construction of its hyperscale data center with a total capacity of 200 MW and powered by 100% renewable energy. The construction is part of Tecto’s expansion strategy, which has earmarked an initial investment of $1 billion for new projects. Tecto is also present in other Brazilian states and in Colombia.
ELEA
Elea Data Centers covers all major cities in Brazil, including the Rio-São Paulo axis, and runs entirely on renewable energy. Elea’s data centers are spread across the Southeast, South and Central West regions of the country.
(Reporting by Luciana Magalhaes and Leticia Fucuchima; Editing by Richard Chang)