Latin America Data Center Market Landscape 2026-2031

LATIN AMERICA DATA CENTER MARKET KEY TRENDS

Sustainability Initiatives and Renewable Energy

• The Latin American data center market is witnessing a growing emphasis on sustainable infrastructure and clean energy adoption, driven by supportive government initiatives and corporate decarbonization goals. Several countries in the region are promoting renewable energy integration, carbon reduction strategies, and energy-efficient digital ecosystems, creating favorable conditions for the expansion of green hyperscale and colocation data centers.
• In October 2025, Amazon Brazil partnered with Petrobras to explore the use of certified low-carbon fuels in its logistics operations, supporting the goal of achieving net-zero carbon emissions by 2040. The collaboration aims to decarbonize transportation in Brazil while strengthening the leadership of the country in biofuels, waste-based energy, and sustainable logistics solutions.
• The combination of renewable energy expansion, supportive government policies, and sustainability-focused investments strengthens the position of Latin America as an attractive destination for green data center development. These initiatives are expected to accelerate the adoption of low-carbon power, energy-efficient technologies, and environmentally responsible digital infrastructure across the region.

Increased Adoption of AI, Automation and Digitalization

• Brazil has placed strong emphasis on AI as a driver of future growth. The AI Strategy of the country seeks to stimulate investment in R&D, foster a robust AI ecosystem, encourage the international positioning of Brazilian AI solutions, and reduce barriers to innovation, while also promoting the responsible use of AI through workforce education. Building on this vision, Brazil introduced its National AI Plan in 2024, committing around $4 billion to support business innovation projects and expand AI-related infrastructure and capabilities. By 2025, internet penetration in Brazil had surpassed 86.5%, translating to more than 184 million users nationwide.
• Colombia continues to enter a new phase of digital maturity, and AI is at the forefront of this transformation. The Colombian government is actively pushing the adoption of AI across several sectors by establishing AI research centers, funding AI startups, and implementing AI-driven solutions in public services. Its National Public Policy on AI, approved through CONPES, aims to position AI as a catalyst for sustainable development and economic transformation by 2030. Supported by a budget of $116 million, the policy focuses on strengthening governance, digital talent, technological infrastructure, and ethical AI adoption.
• Chile is increasingly positioning itself as a regional center for digital innovation and emerging technologies, driven by a strong tech ecosystem and forward-thinking government policies. Government initiatives such as the Digital Transformation Strategy 2035 emphasise improving digital skills, strengthening cybersecurity frameworks, and enhancing technology-enabled public services. Active measures to attract global tech partnerships are further elevating the position of Chile as a regional innovation powerhouse.

LATIN AMERICA DATA CENTER MARKET SEGMENTATION INSIGHTS

• Server infrastructure in Latin America data center market is a rapidly evolving segment, driven by digital transformation, increasing internet penetration, and the need for cloud services in the region. Petrobras has deployed its first AI-focused supercomputer in Brazil, known as Tatu, which is built on 224 NVIDIA GPUs with 80 GB of memory each, distributed across 11 racks within a 7.4-meter equipment row. The region’s data storage infrastructure is transitioning from traditional storage systems to modern Software-Defined Storage (SDS) and HCI, offering better scalability and flexibility
• The electrical infrastructure is witnessing several innovations in the UPS systems, generators, transfer switches & switchgears and other electrical equipment. Some of these innovations include HVO fuel for generator sets, which reduces emissions as a measure to curb emissions.
• Additionally, several innovative UPS batteries, such as Nickel-Zinc (NiZn) and Sodium-Ion batteries, are gaining traction in the market due to their high-power density, safety, sustainability, and other factors.
• Liquid cooling is becoming a significant trend that major colocation operators are implementing in their data center facilities. It is emerging as a key differentiator for colocation providers as AI and compute-intensive workloads continue to grow. Companies like ODATA (Aligned Data Centers), Scala Data Centers, Ascenty and several others are leading the way by offering scalable and energy-efficient solutions that can support the increasing demands of high-performance computing.

LATIN AMERICA DATA CENTER MARKET GEOGRAPHICAL ANALYSIS:

• In the Latin America data center market, Brazil is expected to be the largest market in 2031 in terms of power capacity, with a share of around 36% in 2031. In September 2025, DataSpots secured key network access approvals from Brazil’s national grid operator for three planned data center projects across São Paulo, Rio de Janeiro, and Paraná, unlocking a combined investment of roughly about $2.7 billion (R$15 billion) and advancing development of major digital infrastructure in those states.
• The long-term energy strategy of Chile includes achieving carbon neutrality by 2050 and converting a significant portion of coal-fired units by the end of 2025 under the Ministry of Energy’s Decarbonization Plan. In January 2025, ODATA signed a 100% renewable PPA with Atlas Renewable Energy to supply the full energy requirements of its 28MW ST01 data center in Chile, using power from Atlas’s 1.5GW solar and storage portfolio. This agreement supports the aim of ODATA to run all Chilean operations on renewable energy and strengthen its sustainability commitments.
• Mexico holds a significant share of the Latin American data center market growth. In February 2026, Terranova, the hyperscale data center platform backed by the Actis infrastructure fund, launched its first facility in Mexico, officially beginning operations in the country as part of a broader $1.5 billion investment plan to develop large-scale campuses across Brazil, Mexico, and Chile over the next three years, with additional markets also under evaluation for future expansion.
• The cost of developing a data center facility in Colombia ranges between $7 and $8 million per MW. However, these figures are expected to increase annually due to various factors, including supply chain disruptions, inflation, and rising interest rates.
• Beyond Argentina, Chile, Brazil, Mexico, and Colombia, investments are also expanding into other Latin American markets. In February 2026, Google announced a $500 million investment to develop a new international digital exchange hub (“Digital Port”) in the Dominican Republic, marking its first such facility in Latin America outside the US. The project also includes new submarine cable connections to the US, significantly enhancing regional connectivity and positioning the country as a strategic digital gateway across the Americas.

Segmentation by Geography

• Latin America
  • Brazil
  • Mexico
  • Chile
  • Colombia
  • Argentina
  • Rest of Latin America

LATIN AMERICA DATA CENTER MARKET VENDOR LANDSCAPE

• The Latin America data center market has the presence of key investors such as Actis, Ascenty, AWS, Cirion Technologies, Claro, EdgeConneX, Elea Data Centers, EMPATEL SAPEM, Equinix, Etix Everywhere, G2K, Google, GTD, HostDime, Iplan, IPXON Networks, KIO Data Centers, Microsoft, ODATA (Aligned Data Centers), OneX Data Center, Quantico Data Center, Scala Data Centers, Takoda Data Centers, Tecto Data Centers, Telecentro Empresas and others.
• Mergers & Acquisitions is growing in the LATAM data center industry because it is the fastest and most effective way to acquire capacity, secure power, and scale globally in response to the explosive demand for AI and cloud infrastructure. For instance, in April 2025, Alianza Investimentos Imobiliários, the Brazilian investment company, formed a data center joint venture with GIC, the Singaporean wealth fund, to jointly invest approximately $338 million to develop multiple data centers in Brazil.
• New Entrants include 247 Data Centers, Ada Infrastructure, Atlantic Data Centers, Ava Telecom, CloudHQ, Fermaca Networks, Layer 9 Data Centers, MDC Data Centers, OpenAI & Sur Energy, Surfix Data Center, Terranova, TECfusions and several others.
• Various well-known companies like Google, Microsoft, AWS, Meta, and Apple are investing in this region. For instance, in February 2026, Google announced a $500 million investment to develop a new international digital exchange hub (“Digital Port”) in the Dominican Republic, marking its first such facility in Latin America outside the US. The project also includes new submarine cable connections to the US, significantly enhancing regional connectivity and positioning the country as a strategic digital gateway across the Americas.

Key Data Center IT Infrastructure Providers

• Arista Networks
• Broadcom
• Cisco Systems
• Dell Technologies
• Hewlett Packkard Enterprice
• Huawei Technologies
• IBM
• Lenovo
• NetApp
• NVIDIA
• Oracle
• Pure Storage
• Super Micro Computer

Key Data Center Support Infrastructure Providers

• ABB
• Alfa Laval
• ASSA ABLOY
• Axis Communications
• Bosch
• Bruno Generators
• Caterpillar
• Cummins
• Daikin Applied
• Delta Electronics
• Detroit Diesel
• Eaton
• Generac Power Systems
• Honeywell
• Johnson Controls
• KOHLER
• Legrand
• Mitsubishi Electric
• Munters
• Narada
• Panduit
• Piller Power Systems
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Key Data Center Contractors & Subcontractors

• AECOM
• Aceco TI
• Afonso França Engenharia
• Constructora Sudamericana
• Datawaves
• DLR Group
• Fluor Corporation
• Gensler
• Grupo PML
• Hyphen
• Jacobs Engineering
• KMD Architects
• Mendes Holler Engineering
• Micrico
• Modular Data Centers
• PQC
• Quark
• Racional Engenharia
• Soben
• Syska Henessey Group
• The Weitz Company
• Turner & Townsend
• Turner Construction
• Zeittec
• ZFB Group

Key Data Center Investors

• Actis (NextStream)
• Angola Cables
• Ascenty
• Amazon Web Services
• Cirion Technologies
• Claro
• DHAmericas
• Edge Uno
• EdgeConneX
• Elea Data Centers
• EMPATEL SAPEM
• Equinix
• Etix Everywhere
• EVEO
• G2K
• GlobeNet International Corp
• Google
• GTD
• HostDime
• Iplan
• IPXON Networks
• Internexa
• KIO Data Centers
• Mexico Telecom Partners
• Microsoft
• NetGlobalis
• ODATA (Aligned Data Centers)
• OneX Data Center
• PowerHost
• Quantico Data Center
• Scala Data Centers
• SONDA
• Takoda Data Centers
• Tecto Data Centers
• Telecentro Empresas
• Telecom Argentina

New Entrants

• 247 Data Centers
• Ada Infrastructure
• Atlantic Data Centers
• Ava Telecom
• CloudHQ
• Fermaca Networks
• Layer 9 Data Centers
• MDC Data Centers
• OpenAI & Sur Energy
• Surfix Data Center
• Terranova
• TECfusions

SEGMENTATION ANALYSIS

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

KEY QUESTIONS ANSWERED