Once viewed as an emerging opportunity, Latin America is now among the most rapidly expanding digital infrastructure markets and is attracting significant capital from hyperscalers, colocation providers, and infrastructure investors seeking exposure to rising demand for cloud computing, AI, and data localization. With colocation capacity projected to grow by around 60% in the coming two years and hyperscale inventory increasing from 35 MW in 2020 to 202 MW in 2025, Latin America is positioning itself as one of the most compelling data centre growth stories globally.
According to estimates by Grand View Research, the data center market in Latin America is expected to generate a revenue of USD 26bn by 2033 growing at a compound annual growth rate of 11% from 2026 to 2033.
The colocation inventory grew at a CAGR of 16% from 384 MW in 2019 to 1,105 MW in 2025, nearly tripling in size in seven years, according to a report by global commercial real estate and investment management company JLL. The colocation data centre inventory expanded by 20% during 2025, while vacancy rates remained relatively low at around 9%. Even more notably, approximately 42% of planned future capacity has already been pre-leased, highlighting strong demand despite the rapid pace of development.
Brazil remains the dominant market in the region. The country benefits from its large population, mature digital economy, extensive fibre connectivity, and growing renewable energy capacity. Sao Paulo has emerged as Latin America’s leading data centre hub, hosting major facilities operated by Equinix, Ascenty, Scala Data Centers, ODATA, and numerous hyperscale cloud providers. Recent expansion plans from Equinix and continued investment by Microsoft, Google, and Amazon Web Services (AWS) highlight Brazil’s strategic importance in the regional ecosystem.
The country’s energy matrix is a strong competitive advantage. Markets with a high share of renewable sources, such as Brazil, Chile, and Colombia, tend to attract larger projects that require stability, predictability, and efficiency. In Brazil, around 75% of the energy comes from clean sources, which makes the country especially attractive to hyperscalers – large global cloud service providers that require massive-scale operations. Moreover, programmes such as Redata (Special Taxation Regime for Data Centers) and PNDC (National Data Center Development Program) make Brazil more competitive by offering tax incentives and encouraging the implementation of new projects.
Mexico represents the second-largest opportunity and has become increasingly attractive due to nearshoring trends and its proximity to the United States. Queretaro, in particular, has developed into a major data centre cluster, attracting investments from both domestic and international operators. In January 2025, AWS announced a USD 5bn investment in the state. In May, Brazilian company ODATA said it plans to invest USD 3bn in colocation and neutral connectivity services and in August it launched new data center infrastructure. Momentum continued in September when CloudHQ announced a USD 4.8bn investment to develop a regional data center platform in Queretaro. 2025 ended strong with the launch of a KIO Networks data center and an announcement by UK-based Actis of a USD 1.5bn investment plan for data center development across Latin America, identifying Queretaro as a strategic location.
Chile has emerged as a strategic market for hyperscale development due to its stable regulatory environment, strong renewable energy resources, and extensive submarine cable connectivity. Global cloud providers continue to expand their presence in the country, with AWS announcing a USD 4bn investment to establish cloud infrastructure and its first data centre region in Chile. The country’s role as a digital gateway to the Southern Cone is expected to strengthen as regional demand for cloud and AI services grows.
Colombia is increasingly viewed as an attractive secondary market. While smaller than Brazil, Mexico, and Chile, the country benefits from a growing digital economy, favourable geographic location, and improving connectivity. Bogota has attracted interest from regional and international operators seeking to serve Andean markets with lower latency and enhanced resilience.
Beyond traditional data centres, investors are increasingly exploring opportunities across the wider digital infrastructure ecosystem, including fibre networks, renewable energy projects, transmission infrastructure, and edge computing facilities.
As AI adoption accelerates, demand for high-density computing environments is expected to increase significantly, creating new opportunities for both operators and infrastructure investors.
Latin America’s data centre sector is moving from an emerging market story to a core digital infrastructure investment theme. With strong demand, expanding cloud ecosystems, and billions of dollars in announced investments, the region is positioned to play an increasingly important role in the global digital economy.
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