Brazil Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

MARKET OVERVIEW

The Brazil data center market size will witness investments of USD 5.96 billion by 2030, growing at a CAGR of 9.81% during the forecast period. Brazil stands out as a top destination for data centers within the Latin American market. Moreover, it accounted for more than 41% of the total market investments in the region, showcasing its significance and potential for growth.

The robust infrastructure, combined with a growing demand for digital services, makes Brazil a focal point for technological investments and innovation. With its favorable geographic location, scalable resources, and a strong commitment to enhancing connectivity, the Brazil data center market is well-positioned to continue attracting significant investment in data center operations, supporting various sectors across the economy and catering to an increasing number of businesses seeking reliable cloud solutions.

Investments in renewable energy partnerships and Power Purchase Agreements (PPAs) have become a trend among data center operators. Investors are implementing innovative approaches, such as solar farms and wind power contracts, to secure a sustainable energy supply while reducing carbon footprints. Scala Data Centers in collaboration with Serena announced renewable energy supply agreements in Brazil. Furthermore, Microsoft is strengthening its position in the Brazil data center market by expanding its infrastructure with new data centers in the region. This expansion aims to meet the increasing demand for high-performance computing and storage solutions, further driving digital transformation in the region.

KEY HIGHLIGHTS

1. The Brazil data center market has about 73 operational colocation data centers and most colocation data centers are being developed according to Tier III standards.
2. São Paulo is the top data center destination in the Brazil data center market. It continues to be Brazil’s leading hub for data center expansion, marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. There are more than 40 existing and 20+ upcoming data centers in São Paulo.
3. According to Turner & Townsend’s 2024 Data Center Cost Index, developing a data center in São Paulo costs $10.10 per watt, making it one of the highest costs in the Latin America region. On average, the cost of developing data centers in Brazil ranges between $8.50 and $9.50 per watt.
4. Scala AI City, a collaboration between Scala Data Centers and the government of Rio Grande do Sul has emerged as the largest data center initiative in Latin America, representing a significant investment in the future of artificial intelligence, machine learning, and cloud computing technologies within the region.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Brazil colocation market revenue.
2. An assessment of the data center investment in Brazil by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Brazil data center market landscape, an in-depth market analysis, and insightful predictions about the Brazil data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Brazil
6. Facilities Covered (Existing): 73
7. Facilities Identified (Upcoming): 25
8. Coverage: 9+ Locations
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Brazil
12. Colocation Market Revenue & Forecast (2021-2030)
13. Retail Colocation Revenue (2021-2030)
14. Retail Colocation Pricing
15. The Brazil data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
18. A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

1. In the current landscape of colocation investors, several established companies play a significant role. Notable players in the Brazil data center market include Ascenty, Equinix, Scala Data Centers, ODATA (Aligned Data Centers), Elea Data Centers, Cirion Technologies, and Angola Cable, among others.
2. Companies such as Ada Infrastructure, Surfix Data Center, CloudHQ, and 247 Data Center are emerging in the Brazil data center market, reflecting a growing demand for data center services and innovative colocation solutions. This dynamic environment is fostering competition and promoting advancements in technology and customer offerings.
3. The cloud market in Brazil is expected to continue experiencing significant growth in the future. Major global cloud providers in the Brazil data center market such as Amazon Web Services (AWS), Microsoft, Google, Oracle Cloud, Tencent Cloud, Huawei Cloud, and others continue to expand their presence.
4. For instance, in November 2024, Microsoft announced its plan to invest USD 2.70 billion in cloud and AI Infrastructure over the next three years in Brazil. Earlier, in September 2024, Amazon Web Services (AWS) announced its plan to invest around USD 1.80 billion to expand its data center operations throughout 2034.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Sao Paulo
3. Other States
4. List of Upcoming Facilities in the Region (Area and Power Capacity)
5. Sao Paulo
6. Other States

REPORT COVERAGE:

This report analyses the Brazil data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH
17. Chillers
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV 
31. Geography
32. São Paulo
33. Other States

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Arista Networks, Broadcom, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp, Oracle and Pure Storage
2. Data Center Construction Contractors & Sub-Contractors: AECOM, Afonso França Engenhari, Aceco TI, Constructora Sudamericana, Fluor Corporation, Grupo PML, Jacobs Engineering, Modular Data Centers, Mendes Holler, Quark, Racional Engenharia, Zeittec and ZFB Group
3. Support Infrastructure Providers: ABB, Alfa Laval, Bosch Security & Safety Systems, Caterpillar, Cummins, Daikin Applied, Delta Electronics, Eaton, Honeywell, Johnson Controls, Legrand, Mitsubishi Electric, Munters, Piller Power Systems, Panduit, Rittal, Rolls Royce, Schneider Electric, Siemens, STULZ and Vertiv.
4. Data Center Investors: Actis (NextStream), Amazon Web Services, Ascenty, Angola Cables, Ava Telecom, Cirion Technologies, Elea Data Centers, Equinix, EVEO, Hostdime, Microsoft, ODATA (Aligned Data Centers), OneX Data Center, Quantico Data Center, Scala Data Centers, Takoda Data Centers, Teccloud and Tecto Data Centers (V.tal).
5. New Entrants: ADA Infrastructure, CloudHQ, Surfix Data Center, and 247 Data Centers.