Data Centers in Brazil

Brazil – Latin America’s Central Interconnection Hub

Executive Summary

Brazil is the dominant gateway for enterprises serving the South American market, providing the scale and low-latency connectivity necessary for high-revenue digital services. By centralizing regional traffic and offering sturdy local infrastructure, it remains the vital nexus for digital growth across the Southern Hemisphere.

Brazil: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Brazil hosts a competitive landscape with ~50 carriers as of September 2025. This density provides enterprises with pricing leverage and reliable redundancy for colocation and transit throughout the region.

Direct Cloud On-Ramps: There are over 9 direct on-ramps as of September 2025, facilitating high-speed access to 5 cloud regions. Supported providers include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): IX.br serves as the primary internet exchange, maintaining one of the largest peering ecosystems globally to enable efficient local traffic management.

Bare Metal: High-performance bare metal options are readily available through providers such as Latitude.sh and Hivelocity, supporting intensive compute tasks without virtualization overhead.

Power Analysis

Average Cost Of Power: The average industrial electricity cost is $0.13/kWh as of September 2025. This pricing is competitive for organizations managing strict carbon reduction mandates given a grid that is approximately 82% renewable.

Power Grid Reliability: Energy infrastructure is well-engineered and reliable, particularly in major data center hubs like Sao Paulo and Campinas. These areas utilize multi-substation support to guarantee consistent uptime for mission-critical hardware.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are strategically positioned near the financial centers of Sao Paulo and the industrial zones of Rio de Janeiro. This placement is essential for low-latency financial trading and real-time enterprise resource management.

Regional Market Reach: A presence in Brazil offers a reliable entry point to the Mercosur trade bloc, reaching over 210 million people with significantly fewer hops than North American routes.

Tax Advantage For Data Centers: Federal and state policies provide financial relief by exempting imported server hardware and infrastructure from standard tariffs. This specific tax treatment reduces the initial capital needed for local deployments.

Natural Disaster Risk

Brazil maintains an overall risk score of High (5.2/10) as of September 2025. The risk profile is primarily associated with hydrological and environmental factors rather than seismic activity.

River Flood (7.7): The most significant threat, requiring careful site selection above historical floodplains.

Epidemic (6.4): Reflects regional health management requirements.

Coastal Flood (5.0): A regional risk for sites in port cities such as Santos or Rio de Janeiro.

Drought (4.5): A moderate concern that can impact hydroelectric generation during extreme weather cycles.

Earthquake (0.5): A minor risk as the region is geologically stable.