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Data Centers in Cacoal

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Cacoal – Emerging Edge Hub in Brazil

Cacoal is an emerging edge data center market in Brazil, ideal for organizations targeting the country's agricultural and western commercial regions. Establishing a presence here provides a crucial low-latency connection to a market underserved by the primary data center hubs in São Paulo and Rio de Janeiro, improving application performance and user experience.

Cacoal: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid national connectivity, but lacks the density of primary Brazilian hubs.
Direct Cloud On-Ramps0 – as of September 2025Access is via network extension to major hubs like São Paulo.
Power CostR$0.70-R$0.85/kWh (est.) – as of September 2025Brazil's hydro-heavy grid offers relatively stable and competitive power pricing.
Disaster RiskHigh (5.2/10) – as of September 2025Primarily driven by river flooding and human factors; seismic risk is minimal.
Tax IncentivesYesDC-specific breaks include tariff exemptions for imported IT and data center equipment.
Sales Tax18% (Multiple) – as of September 2025A combination of state (ICMS) and federal (PIS-COFINS/ISS) taxes apply.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Carrier availability in Cacoal is limited compared to Brazil's major metropolitan areas, as of September 2025. Connectivity is primarily provided by national and regional carriers focused on serving local business and agricultural enterprises.

Direct Cloud On-Ramps There are no direct cloud on-ramps in Cacoal, as of September 2025. Secure, private connections to hyperscalers like AWS, Google Cloud, and Microsoft Azure are established through network backhaul to data center hubs in São Paulo.

Internet Exchange Points (IXPs) Public peering is not established in Cacoal. Interconnection is typically handled through private peering arrangements or is routed via the major national exchange points located in São Paulo.

Bare Metal Bare metal server capacity is generally available from providers that specialize in edge deployments. Services from providers like Latitude.sh can deliver dedicated compute resources to serve the regional market effectively.

Power Analysis

Average Cost Of Power Industrial power costs are estimated to be between R$0.70–R$0.85/kWh, as of September 2025. Brazil's power grid is dominated by hydroelectric generation (~60%), which provides a stable and cost-effective energy source for data center operations.

Power Grid Reliability The national grid offers good reliability. However, local infrastructure in an emerging market like Cacoal may feature less substation redundancy than is standard in Brazil's primary data center clusters.

Market Access, Business & Tax Climate

Proximity To Key Business Districts A data center in Cacoal is positioned to serve the agricultural, logistics, and local government sectors in the state of Rondônia. This proximity is critical for delivering low-latency services to regional operations.

Regional Market Reach Cacoal provides a strategic digital infrastructure footprint for serving western Brazil. It enables effective reach into a geography that is thousands of kilometers from the primary tech hubs on the Atlantic coast.

Tax Advantage For Data Centers Brazil offers tax breaks to encourage data center investment. Key programs provide exemptions from import tariffs on essential IT hardware and other capital expenditures, directly lowering the cost of building and scaling operations.

Natural Disaster Risk

The overall INFORM risk score for the region is 5.2 out of 10, classed as High, as of September 2025. This rating is influenced by both natural and human factors.

Key natural hazard scores include:

  • River Flood: 7.7/10
  • Drought: 4.5/10
  • Earthquake: 0.5/10

Risks from tsunami and tropical cyclones are negligible for this inland location. The high overall risk score is significantly impacted by non-natural hazard assessments, such as projected conflict.

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