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Data Centers in Brazil

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Explore Markets in Brazil

Brazil – South America's Dominant Digital Hub

Brazil is the definitive digital infrastructure hub for South America. For any enterprise targeting the continent's largest economy, its dense ecosystem of 239 data centers and direct cloud on-ramps is non-negotiable for delivering low-latency, high-performance applications. This market provides the scale and connectivity essential for capturing revenue and market share across the region.

Brazil: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Excellent international and domestic fiber connectivity.
Direct Cloud On-RampsOver 9 – as of September 2025Direct access to AWS, Azure, Google Cloud (GCP), IBM, and Oracle.
Power Cost$0.13/kWh – as of September 2025Hydro-heavy grid offers stable pricing, though higher than some US markets.
Disaster RiskHigh (5.2/10) – as of September 2025Primary risks are flood-related; seismic and cyclone activity is very low.
Tax IncentivesYesTax exemptions for imported data center equipment and other IT capital expenditures.
Sales Tax18% (Multiple rates apply) – as of September 2025Complex state and federal taxes (ICMS, PIS/COFINS) apply.

Network & Connectivity Ecosystem

Brazil’s network environment is the most mature in South America, offering extensive options for both domestic and international connectivity. The market is heavily concentrated around São Paulo, which acts as the primary interconnection point for the entire country and much of the continent.

Carrier Density & Carrier Neutrality: With approximately 50 carriers operating in the country as of September 2025, businesses have a wide choice of providers. A strong presence of carrier-neutral facilities ensures competitive pricing and resilient network design.

Direct Cloud On-Ramps: Brazil features over 9 dedicated cloud on-ramps connecting to 5 distinct cloud regions. This enables low-latency, private connections directly to major hyperscalers, including AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): The market is anchored by IX.br (São Paulo), one of the largest Internet Exchange Points in the world by traffic volume. Its massive peering ecosystem keeps domestic traffic within Brazil, drastically reducing latency for local users.

Bare Metal: Bare metal cloud solutions are readily available from numerous providers. Global operators like Hivelocity and regional specialists such as Latitude.sh offer dedicated server infrastructure for performance-intensive workloads.

Power Analysis

Brazil's power infrastructure is characterized by its heavy reliance on renewable energy and a generally stable grid in its core economic centers.

Average Cost Of Power: Industrial power costs average around $0.13/kWh as of September 2025. While not the lowest globally, the price benefits from a grid dominated by hydropower (~60%), which provides a predictable and sustainable energy source.

Power Grid Reliability: The electrical grid in major data center corridors like São Paulo and Rio de Janeiro is well-engineered and reliable. Data centers in these areas typically have access to redundant power feeds from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Locating infrastructure in Brazil provides direct access to the continent's largest and most dynamic economy.

Proximity To Key Business Districts: Data centers are strategically located near Brazil's primary economic hubs in São Paulo and Rio de Janeiro. This proximity serves the country's financial services, media, e-commerce, and manufacturing industries, minimizing latency for critical business operations.

Regional Market Reach: Brazil serves as the digital gateway to over 215 million people and acts as a connectivity hub for neighboring countries, including Argentina, Paraguay, Uruguay, and Bolivia. An infrastructure footprint here is fundamental for any pan-South American strategy.

Tax Advantage For Data Centers: Brazil offers significant tax advantages, including tariff exemptions on imported data center equipment. This directly lowers the capital expenditure required to build and scale digital infrastructure in the country.

Natural Disaster Risk

Brazil has a High overall disaster risk profile, rated 5.2 out of 10 as of September 2025. The primary natural hazards are hydro-meteorological, while geological and cyclonic risks are minimal.

Key risks for infrastructure planning include:

  • River Flood (7.7/10)
  • Coastal Flood (5.0/10)
  • Drought (4.5/10)
  • Epidemic (6.4/10)

The risks from earthquakes (0.5/10) and tropical cyclones (0/10) are exceptionally low, making the country a stable location from a seismic and wind-risk perspective.

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