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Data Centers in Brazil

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Explore Markets in Brazil

Brazil – South America's Digital Hub

Brazil is the primary data center market in South America, offering extensive connectivity and direct access to major cloud providers. For any business targeting the continent's largest economy and its 215 million people, localizing digital infrastructure here is critical for reducing latency and improving user experience. The country's combination of carrier density, multiple subsea cable landings, and a growing renewable energy sector makes it a strategic choice for scalable deployments.

Brazil: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Excellent carrier diversity and numerous subsea cable connections to North America and Europe.
Direct Cloud On-RampsOver 9 – as of September 2025Includes AWS, Azure, Google Cloud (GCP), IBM Cloud, and Oracle Cloud.
Power Cost$0.13/kWh – as of September 2025Industrial electricity pricing is competitive for the region, supported by extensive hydroelectric power.
Disaster RiskHigh (5.2/10) – as of September 2025Primarily driven by flood risk in specific regions; seismic and cyclone risks are low.
Tax IncentivesYesDC-specific incentives include tax breaks on IT capital expenditures and imported equipment.
Sales Tax18% (Multiple) – as of September 2025A combination of ICMS, PIS-COFINS, and ISS taxes applies.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: With over 230 data centers and 48 service providers, Brazil has the most competitive connectivity market in South America as of September 2025. Major metropolitan areas like São Paulo and Rio de Janeiro offer access to a dense network of national and international carriers in carrier-neutral facilities.

Direct Cloud On-Ramps: Brazil has over 9 dedicated cloud on-ramps serving 5 distinct cloud regions as of September 2025. Direct, low-latency connections are available to:

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

Internet Exchange Points (IXPs): The country's interconnection landscape is dominated by IX.br, one of the largest internet exchange point networks in the world. Its presence in major cities facilitates efficient, low-cost traffic exchange between networks, significantly improving performance within the country.

Bare Metal: Bare metal server options are readily available from multiple providers. Companies like Latitude.sh offer on-demand compute for performance-sensitive workloads.

Power Analysis

Average Cost Of Power: The average industrial electricity price is approximately $0.13/kWh as of September 2025. This competitive rate helps control operational expenditures for high-density compute. The grid is dominated by renewables, with hydroelectric power accounting for about 60% of the energy mix.

Power Grid Reliability: The power grid in major data center zones like São Paulo is well-engineered, drawing from multiple substations to ensure redundancy. While the national grid can experience variability, critical facilities are built to N+1 or greater standards to deliver high levels of 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 the financial, technology, and media industries clustered there. This proximity is essential for financial trading, content delivery, and enterprise applications.

Regional Market Reach: A deployment in Brazil serves as a strategic hub for reaching nearly all of South America. Its central location and superior connectivity make it the default choice for delivering services across the continent.

Tax Advantage For Data Centers: Brazil offers specific tax incentives to encourage data center investment. These programs provide exemptions and reductions on tariffs for imported IT and infrastructure equipment, directly lowering the capital costs of building and expanding facilities.

Natural Disaster Risk

Brazil has a High overall disaster risk profile, with a score of 5.2 out of 10 as of September 2025. The risk is not uniform across the country; colocation facilities are typically built to mitigate the most common threats.

Key natural hazards include:

  • River Flood: The highest natural risk factor (7.7/10), particularly in specific basins. Data centers are sited in low-risk flood plains.
  • Coastal Flood: A moderate risk (5.0/10) in low-lying coastal cities.
  • Drought: A regional concern (4.5/10) that can impact hydroelectric power generation.
  • Earthquake: A very low risk (0.5/10).
  • Tropical Cyclone: Not a material risk (0/10).
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