Data Centers in Cacoal
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Cacoal – Emerging Edge Hub in Brazil's Interior
Cacoal represents an emerging edge data center market in Brazil, positioned to serve agricultural and logistical hubs in the state of Rondônia. For businesses requiring low-latency compute closer to users in the country's interior, Cacoal offers a strategic location away from the primary coastal data center corridors. This market is ideal for content delivery, IoT, and localized cloud services.
Cacoal: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects a developing market with good national but limited international direct connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in major hubs like São Paulo; access via private network extension. |
| Power Cost | R$0.60–R$0.75/kWh | Based on national industrial averages, as of September 2025. |
| Disaster Risk | High (5.2/10) – as of September 2025 | Driven primarily by flood risk and human factors; low seismic and storm activity. |
| Tax Incentives | Yes | DC-specific breaks for IT capital expenditures and imported data center equipment. |
| Sales Tax | 18% (Multiple) – as of September 2025 | A combination of ICMS, PIS-COFINS, and ISS taxes applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As an emerging market, Cacoal has limited but growing carrier density. The data center environment provides access to key national and regional providers, supporting local enterprise needs as of September 2025.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Cacoal as of September 2025. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure through private network extensions or IP transit to major hubs such as São Paulo.
Internet Exchange Points (IXPs): Peering is primarily handled through private connections or routed through the national Brazil Internet Exchange (IX.br) points in larger metropolitan areas. This setup ensures efficient traffic exchange within the country.
Bare Metal: Bare metal server availability is focused on providers who can service edge locations. Companies like Latitude.sh offer solutions that can be deployed to serve regional demand in areas like Cacoal.
Power Analysis
Average Cost Of Power: Industrial power costs in the region are estimated between R$0.60–R$0.75/kWh, as of September 2025. This rate is competitive within Brazil and is influenced by the country's significant reliance on hydropower, which constitutes approximately 60% of the national energy mix.
Power Grid Reliability: The national grid is well-established, with a strong foundation in hydroelectric power. While reliability in major coastal cities is very high, infrastructure in interior locations like Cacoal is sufficient for business operations but may require more investment in on-site redundant power systems.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Cacoal are positioned to support the region's agribusiness, logistics, and local commerce sectors. This proximity provides low-latency connectivity essential for modern agricultural technology and supply chain management.
Regional Market Reach: Cacoal serves as a digital infrastructure hub for the state of Rondônia and surrounding areas in the North-West region of Brazil. It connects a significant and growing economic zone that is otherwise distant from the main data center markets of São Paulo and Rio de Janeiro.
Tax Advantage For Data Centers: Brazil offers significant tax incentives for data center investments. These programs can reduce the financial burden of capital expenditures by providing exemptions on tariffs for imported IT and power infrastructure, directly lowering the total cost of ownership.
Natural Disaster Risk
Cacoal has a high overall risk profile, scoring 5.2 out of 10 according to the INFORM Risk Index as of September 2025. While the risk of certain natural disasters is minimal, others require careful planning.
The primary natural hazards for this region include:
- River Flood: Score of 7.7
- Coastal Flood: Score of 5.0 (Relevant to national infrastructure dependencies)
- Drought: Score of 4.5
- Earthquake: Score of 0.5 (Very Low)
- Tropical Cyclone: Score of 0 (Very Low)
The risk profile is elevated by high scores in human-related factors, such as projected conflict probability, and institutional vulnerabilities. The direct threat from seismic or cyclonic activity is negligible.
