SAO PAULO (Reuters) – Brazil is quickly becoming a prominent hub for data centers, as billions of dollars in investments are anticipated in the near future. This growth is primarily driven by the increasing prominence of artificial intelligence and the limitations of larger markets in the U.S. and Europe.
Several companies are venturing into the sector in Brazil, including:
ASCENTY:
Ascenty, with 34 data centers either operational or in the construction phase across Latin America, is actively seeking a minority partner to support further expansion, particularly within Brazil. The company is under the control of global investment firm Brookfield Asset Management and Digital Realty, based in the U.S.
GRUPO FS:
Grupo FS, a Brazilian cybersecurity company, is entering the data center arena with plans to invest $1.8 billion ($300 million) to establish three data centers in Brazil. Alberto Leite, the owner, highlighted the country’s political stability, renewable energy resources, and growing local demand as key factors fueling this investment.
EQUINIX:
Equinix, a global digital infrastructure company, is ramping up its presence in the states of São Paulo and Rio de Janeiro, as reported by Eduardo Carvalho, the managing director for Latin America. The company, founded in Silicon Valley in 1998, continues to expand its operations.
ODATA:
ODATA, acquired by Aligned Data Centers in 2023, is experiencing steady growth in response to increasing demand in Brazil. Fernando Jaeger, the director of new businesses, identified Rio de Janeiro and São Paulo as crucial areas for investment. ODATA also maintains data centers in Chile, Colombia, and Mexico and recently entered the U.S. market following its acquisition by Aligned.
TECTO:
Tecto, the data center division of V.tal under the control of Brazilian bank BTG, recently announced the acquisition of new land in São Paulo state for the development of a hyperscale data center with a total capacity of 200MW, powered entirely by renewable energy. This construction aligns with Tecto’s expansion strategy, which includes an initial investment of $1 billion for new projects. Tecto also operates in other Brazilian states and Colombia.
ELEA:
Elea Data Centers have a significant presence across major cities in Brazil, notably in the Rio-São Paulo corridor, and operate exclusively on renewable energy. Elea’s data centers are strategically located in the Southeast, South, and Central West regions of the country.
The growth of data centers in Brazil reflects the country’s increasing significance in the global digital landscape, as noted by industry experts and company representatives. This trend is set to continue as investments pour into the sector, driven by technological advancements and favorable conditions within the Brazilian market.
(Reporting by Luciana Magalhaes and Leticia Fucuchima; Editing by Richard Chang)
