Brazil Data Center Colocation Market - Supply & Demand Analysis 2026-2031

Brazil data center colocation market is expected to grow at a CAGR of 10.66% from 2025 to 2031.

BRAZIL DATA CENTER COLOCATION MARKET IN SIGHTS BY UTILIZED AREA

The Brazil data center colocation market by utilized area is expected to reach 14.09 million square feet by 2031. As of 2025, São Paulo is the major data center location in Brazil, accounting for a significant share of the country's data center space. The city has attracted major operators, including Equinix, Ascenty, Scala Data Centers, and ODATA (Aligned Data Centers), among others. Land prices in São Paulo range from $15 to $25 per square foot.

In addition to the growing data center infrastructure, Brazil has established several Free Trade Zones (FTZs) and Export Processing Zones (EPZs) to support industrial and trade activities. The country currently has 16 EPZs across 15 states. Major FTZs include the Manaus FTZ, Macapá FTZ, and Tabatinga FTZ, among others. These zones can support investment and business activities by offering a favorable environment for companies establishing or expanding their operations in Brazil.

BRAZIL DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED RACKS

The Brazil data center colocation market by utilized racks is expected to reach 296.68 thousand units by 2031. As of 2025, the average rack power density in Brazil's data centers ranges from 4 kW to 7 kW per rack. However, rack power density is increasing in response to the growing demand for high-performance computing resources, particularly from AI, ML, and cloud computing applications. This trend is reflected in the Scala AI City project by Scala Data Centers, which features racks with capacities exceeding 150 kW, significantly higher than the standard 20 kW racks commonly used in conventional data center setups.

RECENT DEVELOPMENTS & NEWS IN THE BRAZIL DATA CENTER COLOCATION MARKET

• In June 2026, Ada Infrastructure began construction on the GRU10 data center campus, which will eventually include three data center facilities and provide a total power capacity of 300 MW. This project is designed to support cloud and artificial intelligence workloads, including machine learning and inference, as well as large-scale GPU deployments. These segments are experiencing growing demand among hyperscale customers looking to expand their presence in Brazil and Latin America.
• In April 2026, Equinix announced the launch of phase -1 of its SP6 data center facility with 1,125 rack cabinets in São Paulo, Brazil. The company aims to invest $114 million in the project.
• In January 2026, Ascenty signed a 110 MW renewable energy supply agreement with Casa dos Ventos under a self-production model, tied to wind and solar projects with a combined capacity of over 1.5GW expected to come online in 2027. The deal, valued at approximately $500 million, also grants Ascenty an equity stake in the projects, supporting long-term power security and expansion across Brazil.

BRAZIL DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Rise in Artificial Intelligence & Digitalization

Brazil is undergoing a digital transformation, characterized by an expanding internet user base driven by a combination of public and private sector efforts. By 2025, internet penetration in Brazil had surpassed 86.5%, translating to more than 184 million users nationwide. This expansion has been driven by government-led initiatives, continuous technological progress, and the rising adoption of digital tools across key sectors such as education, healthcare, and commerce. The Ministry of Education has played an active role in advancing digital learning through programs such as the Connected Education Innovation Policy, which promotes the integration of digital technologies in public schools.

5G Deployment & Edge Data Center Deployment

The synergy between 5G and edge data centers is reshaping the digital landscape of Brazil in 2025. To complement 5G, companies are investing heavily in edge data centers, which bring data processing closer to end-users. In February 2026, NEC, a global IT and network transformation services provider, and Nokia announced plans to help Eletronet, a Brazilian Telecom and IT infrastructure provider, expand the optical-fiber backbone of Brazil by 8,000 km, reaching 25,000 km across 23 states by the end of 2026.

INDUSTRY RESTRAINT

Growth In Need for Skilled Workforce

Skilled Workforce remains one of the key challenges for data center development in Brazil. By 2026, the country is likely to continue to be the largest data center market in Latin America. In Brazil, demand for experts in fields such as data engineering, cloud architecture, and AI is outpacing the supply of qualified talent. As of September 2025, Brazil faces a critical tech workforce shortage, with a projected deficit of over 500,000 technology professionals. The average time needed to fill digital and IT roles in Brazil has stretched to 60 days, up from 45 days previously.

BRAZIL DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

INSIGHTS BY COLOCATION DEMAND

In terms of colocation demand by industry, the cloud & IT sector dominated the market in 2025 with the largest share of Brazil’s colocation demand, accounting for around 55% of the market’s total demand. This domination is led by a rapid surge in enterprise cloud migration, hyperscale cloud adoption, advancements in emerging technologies like cloud computing, artificial intelligence, machine learning, and others, along with rising enterprise digitalization initiatives.

INSIGHTS BY COLOCATION REVENUE

In terms of revenue, retail colocation dominates for over 60% of the market’s total revenue share in 2025, whereas the wholesale colocation segment’s contribution is anticipated to increase to around 50% of the market’s revenue share by 2031, owing to the rapid surge in wholesale leasing activity, build-to-suit deployment models, and continuous hyperscale and AI-ready infrastructure deployments.

WHAT'S INCLUDED?

• A transparent research methodology and insights on the colocation demand and supply aspect of the market.
• Market size available in terms of utilized white floor area, IT power capacity, and racks.
• Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy%.
• The study of the existing Brazil data center market landscape, and insightful predictions about data center market size during the forecast period.
• An analysis of the current and future colocation demand in Brazil by several industries.
• A study on sustainability status in Brazil.
• Analysis of current and future cloud operations in Brazil.
• A snapshot of upcoming submarine cables in Brazil.
• Snapshot of existing and upcoming third-party data center facilities in Brazil.
• Facilities Covered (Existing): 84
• Facilities Identified (Upcoming): 57
• Coverage: 30+ states
• Existing vs. Upcoming (White Floor Area)
• Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Brazil.
• Colocation Market Revenue & Forecast (2025-2031)
• Retail Colocation Revenue (2025-2031)
• Wholesale Colocation Revenue (2025-2031)
• Retail Colocation Pricing along with Add-ons
• Wholesale Colocation Pricing along with the pricing trends.
• An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Brazil.
• Competitive landscape, including market share analysis by the colocation operators based on IT power capacity and revenue.
• Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

• Data center Real Estate Investment Trusts (REITs)
• Data center Construction Contractors
• Data center Infrastructure Providers
• New Entrants
• Consultants/Consultancies/Advisory Firms
• Corporate and Government Agencies

VENDOR LANDSCAPE

Existing Colocation Operators

• Elea Data Centers
• Equinix
• Ascenty
• HostDime
• Tecto Data Centers (V.tal)
• Scala Data Centers
• Angola Cables
• Cirion Technologies
• OData (Aligned Data Centers)
• NextStream (Nabiax)
• Takoda Data Centers
• Quântico Data Center
• Other Operators

New Operators

• Ada Infrastructure
• CloudHQ
• Atlantic Data Centers
• Aurea Finvest
• 247 Data Centers
• DataSpots
• TERRANOVA (Actis)
• Parks Data Center
• RT-One
• Supernova And Mapa Investimentos

KEY QUESTIONS ANSWERED:

1. What is the count of existing and upcoming colocation data center facilities in Brazil?
2. How much MW of IT power capacity is likely to be utilized in Brazil by 2031?
3. What factors are driving Brazil data center colocation market?
4. Who are the new entrants in the Brazil data center industry?