South America Bare Metal Cloud Market Outlook, 2030

South America’s bare metal cloud scene has moved quickly from simple rack rentals to a strategic, locally anchored infrastructure market shaped by hyperscaler regions, major campus builds and demand for high performance compute in industries such as e commerce, media and finance. Amazon Web Services and Google Cloud both operate public cloud regions in São Paulo and those regions underpin local use of dedicated physical servers for latency sensitive workloads. Digital Realty completed the acquisition of Ascenty making Ascenty a cornerstone for high density campuses across Brazil while ODATA under Aligned Data Centers expanded facilities in São Paulo and Bogotá designed for GPU clusters and NVMe storage arrays.

Operators frequently specify AMD EPYC processors and NVIDIA accelerators to support AI model training and video encoding, and network operators are rolling out 100 gigabit and 400 gigabit links in carrier hotels to lower I O bottlenecks. The Firmina subsea cable and Google’s Curie cable enhanced connectivity between South America and North America improving latency for multinational analytics workloads. Brazil’s general data protection law led many banks and healthcare groups to prefer onshore dedicated servers for compliance reasons and Mercado Libre has publicly documented using edge and Outposts style infrastructure to accelerate distribution center automation.

Investment flows are visible with Tecto building a 200 megawatt hyperscale campus backed by BTG and Elea operating renewable powered sites across the country to meet sustainability goals. Telecom operators and cloud providers run joint edge pilots to support low latency gaming and 5G use cases while startups offering orchestration and managed bare metal platforms receive venture funding to simplify consumption.

According to the research report, "South America Bare Metal Cloud Market Outlook, 2030,", the South America Bare Metal Cloud market is anticipated to add to more than USD 1.06 Billion by 2025-30. Enterprise adoption in South America shows clear patterns driven by sector specific needs, rapid local investment and a competitive mix of global hyperscalers and strong regional operators. Large banks such as Itaú and Bradesco use cloud native services and dedicated infrastructure for machine learning and transaction systems while Mercado Libre runs critical commerce and payments workloads across a mix of local and cloud hosted infrastructure.

Media conglomerate Globo relies on GPU enabled racks for live streaming and transcoding during major events. Digital Realty through Ascenty and Aligned Data Centers via ODATA have been expanding campus capacity in São Paulo and Campinas to host enterprise bare metal deployments and Equinix continues to grow interconnection in the region to serve multinational customers. New entrants and expansions include Tecto building a major renewable energy powered hyperscale project and Elea marketing green data halls to attract sustainability conscious enterprises.

Mergers and private equity investments have accelerated scale and created options for long term contracts, and government initiatives encouraging digital transformation support local hosting choices for public sector workloads. SMEs and digital native firms often choose managed bare metal with pay as you go options from providers like Locaweb to avoid heavy capital expense while larger corporates negotiate reserved capacity and bespoke SLAs. Venture capital into orchestration startups and managed service specialists is helping enterprises consume bare metal more easily and procurement decisions typically balance total cost of ownership, regulatory constraints under local privacy law and the performance gains of direct hardware access.

Market Drivers

• Expanding Digital Services and E-commerce: South America has seen rapid growth in online retail, digital payments, and streaming platforms, especially in Brazil, Argentina, and Chile. Bare metal servers are being adopted to handle surges in traffic during seasonal sales events or major broadcasts, where downtime can directly impact revenues. Companies in fintech and e-commerce rely on the predictable performance of dedicated servers to process high transaction volumes securely, ensuring both customer trust and consistent service availability across diverse digital platforms.
• Increasing Telecom and Connectivity Investments: The region is investing in better connectivity, including new submarine cables, 5G rollouts, and expanded data centers. Telecom providers in Brazil and Colombia are deploying bare metal infrastructure to support mobile banking, content delivery, and cloud services closer to users. These investments create a backbone that encourages enterprises to adopt bare metal cloud for latency-sensitive applications. The improved digital infrastructure acts as a catalyst, enabling more businesses to transition to high-performance computing environments.

Market Challenges

• High Cost Barriers for Smaller Enterprises: Many small and medium businesses in South America face financial constraints that make it difficult to adopt dedicated infrastructure. While bare metal provides superior performance, the costs of service contracts, advanced hardware, and network integration can be prohibitive. This limits adoption to larger enterprises and slows down overall market penetration. Without financing options or government support, smaller firms may continue to rely on shared virtualized cloud despite performance limitations.
• Infrastructure Gaps in Less Developed Areas: While major hubs like São Paulo, Santiago, and Buenos Aires have growing data center ecosystems, rural and secondary markets still lack reliable connectivity and power. This uneven distribution of infrastructure creates adoption challenges, as companies outside urban centers struggle to access bare metal services. Providers must invest in regional expansion to tap into these markets, but logistical and cost barriers remain significant, slowing broader availability.

Market Trends

• Strong Growth in Media and Entertainment Usage: Streaming platforms, broadcasters, and gaming firms are among the most active users of bare metal in South America. With high demand for online video and esports in Brazil and Argentina, companies deploy GPU-backed bare metal servers for rendering, transcoding, and multiplayer hosting. These industries value low latency and performance reliability, making bare metal a natural fit. As audiences expand, media firms increasingly use bare metal for core workloads while integrating cloud for global distribution.
• Adoption of Hybrid Cloud Strategies: Enterprises in South America are blending bare metal with public cloud to balance performance and cost. Critical workloads such as payment processing or healthcare databases are kept on dedicated servers within national borders, while analytics and marketing functions are offloaded to global cloud platforms. This hybrid approach is becoming a trend because it addresses both compliance and scalability. Providers in the region are responding by offering integrated solutions that connect local bare metal deployments with international cloud services.Services are growing fastest in South America’s bare metal cloud market as enterprises seek managed infrastructure that reduces the burden of maintaining hardware while meeting local compliance and connectivity needs.

In South America many companies are adopting managed service models for bare metal because the region faces both a shortage of specialized IT talent and the need to modernize digital infrastructure quickly. Enterprises in Brazil Argentina and Chile want the performance of dedicated servers but prefer to avoid the costs and risks of running their own facilities in markets where energy prices real estate and maintenance are expensive. By choosing service based bare metal solutions organizations can gain access to powerful hardware with guaranteed uptime and support while providers handle upgrades patching and replacement.

Brazilian banks and fintech companies for example subscribe to managed bare metal to support payment systems and digital wallets that must operate reliably during periods of intense transaction volume. Media firms in Argentina use service contracts to run content delivery and video processing nodes without building internal data centers. Even government agencies and public health networks have turned to managed models because providers document compliance and data handling practices that align with local privacy rules.

The services model also helps South American companies connect to international markets since global providers with operations in São Paulo or Santiago can offer direct interconnects and cloud integration without requiring enterprises to manage their own cross border data centers. Managed services are particularly attractive to small and mid-sized businesses that need to scale quickly but lack the staff to operate complex infrastructure. The convenience of APIs and orchestration tools combined with service level agreements for hardware reliability gives these firms confidence that they can compete with larger rivals while staying focused on their core business.

Media and entertainment is a significant industry in South America’s bare metal cloud market as streaming platforms broadcasters and gaming companies require dedicated infrastructure to handle massive audiences and unpredictable demand.

The media and entertainment industry in South America has become one of the most important users of bare metal cloud because the region has a highly engaged population consuming streaming video social media and online games at record levels. Brazil alone accounts for millions of viewers using video on demand platforms and during major sporting events or concerts streaming traffic surges dramatically. Bare metal servers provide the performance and reliability needed to process and distribute this content without delays or buffering. In Argentina and Colombia television networks and film studios increasingly rely on GPU backed bare metal nodes to render high definition content and to transcode video for multiple devices.

Gaming companies in Chile and Brazil deploy dedicated servers to host multiplayer environments because latency is critical for player experience and bare metal eliminates the risks of resource contention found in virtualized environments. These industries also face the challenge of unpredictable demand spikes where audiences may double overnight when a new show or game launches. The flexibility of bare metal cloud services allows media firms to bring additional dedicated servers online quickly without investing in permanent infrastructure.

Content distribution networks across the continent place bare metal nodes at regional edge locations to ensure viewers in cities from São Paulo to Buenos Aires enjoy low latency streaming. Media firms also value the ability to comply with local regulations by hosting content on servers physically located within national borders while still leveraging the scalability of cloud like provisioning.

Hybrid deployment is expanding fastest in South America’s bare metal cloud market as enterprises balance regulatory requirements for local data hosting with the scalability of global public cloud services.

South American companies increasingly choose hybrid deployment because it gives them the flexibility to keep sensitive workloads on dedicated local servers while using public cloud for services that benefit from elasticity and global reach. Brazil has strict data residency requirements for financial and healthcare data and enterprises in these sectors often prefer to run critical applications on bare metal servers located within the country. At the same time they connect these systems to global cloud platforms for analytics reporting and customer engagement. Retailers in Argentina keep transaction processing on local dedicated infrastructure while storing catalogs and running marketing algorithms in the cloud.

Media companies in Chile use bare metal clusters for rendering and transcoding but rely on public cloud for content distribution to audiences abroad. The hybrid approach is especially important for startups and regional firms that want to expand quickly across borders while maintaining compliance at home. Providers in South America support hybrid adoption by offering direct interconnects between local bare metal facilities and international cloud regions which simplifies management and reduces latency. This model also allows companies to migrate gradually without large upfront commitments shifting workloads step by step based on performance and compliance needs. The hybrid deployment strategy reflects how businesses in South America actually operate in a digital economy shaped by both local regulations and international markets.

Databases and general purpose infrastructure are significant in South America’s bare metal cloud market as enterprises rely on dedicated servers to run core business applications with consistency and compliance.

Enterprises in South America prioritize bare metal cloud for databases and general purpose infrastructure because these workloads form the backbone of their operations and require reliability above all. Banks in Brazil host their transaction processing systems and core ledgers on dedicated servers to guarantee low latency and ensure compliance with financial regulations. Healthcare providers in Chile and Argentina keep electronic medical records and imaging databases on bare metal to maintain patient privacy and satisfy government oversight.

Manufacturing firms across the region run ERP and supply chain systems on dedicated infrastructure because production schedules depend on consistent performance without interruptions from shared environments. Retailers in Colombia use bare metal to manage inventory systems and payment gateways that cannot afford downtime during peak shopping periods. General purpose infrastructure such as application servers middleware and virtualization platforms also benefits from bare metal because it allows companies to customize configurations and control resource allocation directly.

Many enterprises deploy high availability clusters on bare metal servers to ensure business continuity and disaster recovery which are critical given the region’s exposure to power instability and natural disasters. The importance of databases and general purpose infrastructure is also linked to compliance since regulators often demand detailed accountability for how sensitive data is stored and processed. Bare metal makes it easier for enterprises to provide audit trails and meet these obligations.

SMEs are the fastest growing users of bare metal cloud in South America as smaller firms embrace managed infrastructure to scale digital services quickly without heavy investment in hardware.

Small and medium sized enterprises in South America are increasingly adopting bare metal cloud because it allows them to compete with larger corporations by accessing enterprise grade infrastructure on flexible terms. Many startups in Brazil Argentina and Chile are active in fintech ecommerce and gaming sectors which demand reliable low latency platforms but these firms cannot afford to purchase and maintain their own data centers. By renting bare metal servers they gain the performance needed for real time payment processing multiplayer gaming or online retail without large upfront costs.

Providers in the region offer managed services that handle hardware maintenance upgrades and compliance documentation which removes the burden from SMEs with limited IT staff. This model enables them to focus on building products and expanding customer bases. For example fintech startups in São Paulo use bare metal cloud to host secure transaction engines while scaling user growth. Gaming developers in Buenos Aires rely on dedicated servers to deliver smooth gameplay experiences to local audiences. Ecommerce startups use bare metal to manage high traffic volumes during seasonal sales and integrate with cloud services for marketing and analytics.

Government programs in Brazil and Chile that support digital transformation also encourage SMEs to adopt advanced IT infrastructure and providers have responded with localized data centers that ensure compliance with national regulations. The ability to consume bare metal as a service gives SMEs the same technological edge once reserved for large enterprises while maintaining predictable operating expenses.Brazil leads the South American bare metal cloud market due to its large digitally active population, supportive government policies, and growing investment in data center infrastructure.

With more than 200 million people and one of the highest internet and mobile penetration rates in the region, Brazil generates enormous demand for digital services such as streaming, e-commerce, fintech, and social media, all of which rely on robust cloud infrastructure to deliver consistent performance. Bare metal servers are particularly useful for these sectors because they allow companies to manage large spikes in demand while ensuring predictable performance, critical for services like online banking, payments, and video streaming.

The Brazilian government has further supported this growth by classifying data center operations as part of free enterprise, avoiding the heavier regulatory burdens placed on traditional telecommunications providers, and offering credit lines and incentives for digital infrastructure investments. This has led to the entry and expansion of both domestic and international players who see Brazil as the natural hub for serving South American users. Cities like São Paulo and Rio de Janeiro have become regional connectivity hubs with reliable power, robust undersea cable connections, and proximity to enterprise clients.

Brazil also benefits from abundant natural resources that help support sustainable data center operations, particularly access to renewable energy and water for cooling, which align with the growing global emphasis on green IT practices. On the enterprise side, large Brazilian companies in sectors like finance, energy, and retail are increasingly adopting hybrid and multi-cloud strategies, where bare metal servers host compliance-sensitive or performance-intensive workloads, while virtualized cloud services handle more elastic demand.

Multinational firms entering Latin America also prefer to establish infrastructure in Brazil due to its scale and relatively stable business environment compared to neighboring countries. The rise of fintech startups in São Paulo, which is one of the most vibrant ecosystems outside of North America, adds to the demand for secure and high-performance infrastructure.

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