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Data Centers in Brazil

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Brazil – South America's Digital Gateway

Brazil is the primary digital infrastructure hub for Latin America. Its massive network of data centers, extensive fiber optic connectivity, and direct on-ramps to major cloud providers make it the critical location for any business serving the continent, ensuring low latency and high availability for mission-critical applications.

Brazil: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Excellent international and domestic fiber connectivity, anchoring the South American network.
Direct Cloud On-RampsOver 9 – as of September 2025Direct access to AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, Oracle Cloud.
Power Cost$0.13/kWh (Industrial) – as of September 2025Competitive pricing supported by a high percentage of renewable energy sources.
Disaster RiskHigh (5.2/10) – as of September 2025Dominated by flood risk in specific regions; seismic and cyclone risks are minimal.
Tax IncentivesYesIncludes tariff exemptions on imported equipment and other tax breaks for IT expenditures.
Sales Tax18% (Multiple) – as of September 2025Comprises several state and federal taxes (ICMS, PIS-COFINS, ISS).

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: With over 48 providers operating in the country, Brazil offers a competitive and diverse connectivity market as of September 2025. The environment supports a healthy mix of local, regional, and international carriers, ensuring resilient network designs.

Direct Cloud On-Ramps: Brazil has over 9 dedicated cloud on-ramps providing direct, low-latency connections into 5 distinct cloud regions as of September 2025. Available providers include:

  • AWS
  • Google Cloud (GCP)
  • Microsoft Azure
  • IBM Cloud
  • Oracle Cloud

Internet Exchange Points (IXPs): The country is home to some of the world's largest internet exchanges, primarily through the IX.br project. These IXPs are critical for keeping domestic traffic within Brazil, reducing latency and improving performance for local users.

Bare Metal: Bare metal server options are widely available from multiple providers. Companies like Latitude.sh and Hivelocity offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Average Cost Of Power: The average industrial electricity price is approximately $0.13/kWh as of September 2025. This competitive rate, combined with a grid heavily reliant on renewables, offers a stable and cost-effective power outlook for data center operators.

Power Grid Reliability: The national power grid is generally reliable in the main economic centers where data centers are located, such as São Paulo and Rio de Janeiro. Major facilities are supported by redundant connections and multiple substations to ensure consistent uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near São Paulo and Rio de Janeiro, providing low-latency access to Brazil's financial, media, and corporate headquarters. This proximity is essential for financial trading, e-commerce, and content delivery.

Regional Market Reach: As the largest economy in South America, a data center presence in Brazil effectively serves not only its 215 million citizens but also acts as a connectivity hub for neighboring countries like Argentina, Chile, and Colombia.

Tax Advantage For Data Centers: Brazil offers significant tax incentives to attract data center investment. These programs include exemptions from import tariffs on IT equipment and potential breaks on other federal and state taxes, directly reducing capital expenditures for new builds and expansions.

Natural Disaster Risk

Brazil has a High overall disaster risk profile, scoring 5.2 out of 10 according to the INFORM Risk Index as of September 2025. This rating is driven primarily by specific, localized natural hazards rather than widespread, catastrophic events.

Key natural risks include:

  • River Flood: The most significant natural hazard, with a risk score of 7.7, particularly in the Amazon Basin and other major river systems.
  • Coastal Flood: A notable risk in low-lying coastal cities, with a score of 5.0.
  • Drought: Rated at 4.5, affecting agricultural regions and hydroelectric power generation periodically.
  • Earthquake: Risk is very low, with a score of 0.5.
  • Tropical Cyclone: Risk is negligible, with a score of 0.
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