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Data Centers in Brazil

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Explore Markets in Brazil

Brazil – South America’s Digital Colossus

Brazil is the definitive digital gateway to Latin America, offering the largest single market and the most extensive cloud and network infrastructure on the continent. For any enterprise targeting growth in South America, a direct presence here is non-negotiable for delivering the performance and scale required to compete effectively. This market provides unparalleled connectivity, reaching a massive domestic population and serving as a stable hub for regional operations.

Brazil: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+The dominant connectivity hub for South America with extensive subsea cable landings.
Direct Cloud On-RampsOver 9 – as of September 2025AWS, Azure, Google Cloud (GCP), IBM Cloud, Oracle Cloud.
Power Cost$0.13/kWh (Industrial) – as of September 2025Favorable rates supported by a grid dominated by renewable hydropower sources.
Disaster RiskHigh (5.2/10) – as of September 2025Primarily driven by flood, drought, and epidemic risks; seismic activity is very low.
Tax IncentivesYesDC-specific tax breaks available for IT capital expenditures and imported equipment.
Sales TaxMultiple (18%) – as of September 2025A complex system includes ICMS, PIS-COFINS, and ISS taxes on services.

Network & Connectivity Ecosystem

Brazil’s network ecosystem is the most mature in South America, offering unmatched scale and performance. The country serves as the primary landing point for nearly all major subsea cables connecting the continent to North America, Europe, and Africa.

Carrier Density & Carrier Neutrality: With over 45 unique network providers active as of September 2025, Brazil offers a competitive and diverse marketplace. Carrier-neutral facilities in São Paulo and Rio de Janeiro provide access to this rich ecosystem, ensuring resilient, low-latency connectivity.

Direct Cloud On-Ramps: As of September 2025, Brazil hosts over 9 dedicated cloud on-ramps connected to 5 in-country cloud regions. This facilitates secure, high-performance hybrid cloud architectures. Available providers include:

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

Internet Exchange Points (IXPs): The country is home to IX.br (formerly PTT.br), one of the largest internet exchanges in the world. Centered in São Paulo, it provides efficient traffic exchange, reducing latency and costs for content and application delivery across the entire region.

Bare Metal: Bare metal server solutions are readily available from multiple providers. Established options include providers like Latitude.sh and Hivelocity, offering dedicated compute for performance-sensitive workloads.

Power Analysis

Brazil's power infrastructure is a significant advantage, characterized by a high percentage of renewable energy and competitive industrial pricing.

Average Cost Of Power: Industrial power costs average around $0.13/kWh as of September 2025. This competitive pricing, combined with a green energy mix, helps manage operational expenditures and achieve sustainability goals.

Power Grid Reliability: The national grid is heavily reliant on hydropower (~60%), supplemented by wind, solar, and biomass. In major data center hubs like São Paulo, the power infrastructure is well-engineered with redundant feeds from multiple substations to support high-uptime requirements.

Market Access, Business & Tax Climate

Locating in Brazil provides direct access to the ninth-largest economy in the world and a strategic anchor for regional expansion.

Proximity To Key Business Districts: Data centers are concentrated around São Paulo and Rio de Janeiro, in close proximity to major financial districts like Faria Lima and industrial centers. This ensures low-latency connectivity for the country's finance, media, manufacturing, and e-commerce sectors.

Regional Market Reach: Brazil acts as the digital hub for the Southern Cone (Mercosur) countries. A presence here provides an effective base to serve hundreds of millions of consumers and businesses in Argentina, Chile, Uruguay, Paraguay, and beyond.

Tax Advantage For Data Centers: Brazil offers specific tax incentives designed to attract technology investment. These programs can provide significant relief from import duties on essential data center equipment, directly lowering the capital expense required for builds and hardware refreshes.

Natural Disaster Risk

Brazil has a High overall disaster risk profile, rated at 5.2 out of 10 according to the INFORM Risk Index as of September 2025. The risk is driven by climate and health factors, not seismic or cyclonic events.

Key natural hazards include:

  • River Flood: The highest individual risk factor (7.7/10), particularly in specific basins.
  • Epidemic: A significant national-level risk (6.4/10).
  • Coastal Flood: A material risk for coastal cities (5.0/10).
  • Drought: A recurring challenge in certain regions of the country (4.5/10).

Risks from earthquakes (0.5/10), tsunamis (0/10), and tropical cyclones (0/10) are negligible, making the country a stable location from a geological and meteorological standpoint.

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