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Cacoal – Essential Edge Capacity for Brazil’s Interior

Executive Summary

Cacoal serves as a vital edge hub for Rondonia, providing infrastructure for the agribusiness and logistics sectors. It offers a reliable failover point for enterprises maintaining uptime in Brazil’s interior while bypassing the latency of distant coastal hubs. This location is a strong choice for organizations requiring data sovereignty and resilient regional compute power.

Cacoal: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStable regional routing with backhaul to major hubs.
Direct Cloud On-Ramps0 – as of January 2026Nearest major hub for cloud on-ramps is Sao Paulo.
Power Cost$0.11 – $0.14/kWhReflects renewable heavy industrial grid as of January 2026.
Disaster RiskHigh (5.2/10)Risk level primarily from hydrological factors as of January 2026.
Tax IncentivesYesIncludes tariff exemptions for imported data center hardware.
Sales Tax18% VATCombined ICMS, PIS-COFINS, and ISS rates as of January 2026.

Network & Connectivity Ecosystem

Cacoal functions as a critical edge location, prioritizing regional distribution over international transit.

Carrier Density & Carrier Neutrality: Carrier count: over 5. As of January 2026, the market is served by a mix of regional fiber providers and national telecommunications companies. This variety ensures competitive local loops and reliable path diversity for regional traffic.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of January 2026, no direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure exist locally. Organizations typically access these global platforms via private transport or high speed waves to the primary cloud ecosystem in Sao Paulo.

Internet Exchange Points (IXPs): Peering is managed through regional exchanges or through the IX.br platform in larger hubs like Cuiaba or Sao Paulo. This setup helps maintain uptime and reduces hops for local traffic as of January 2026.

Bare Metal: High performance hardware is available through regional providers and specialized entities like Latitude.sh. These services provide flexible compute options without the capital burden of physical hardware management as of January 2026.

Power Analysis

The power infrastructure in Cacoal is integrated into the Brazilian national grid, which relies heavily on sustainable generation.

Average Cost Of Power: Industrial electricity ranges between $0.11 and $0.14/kWh, as of January 2026. This pricing remains competitive within the region and supports predictable operational expenditures for high density edge deployments.

Power Grid Reliability: The local grid is supported by a well-engineered network with hydro-electric dominance, offering stable energy delivery. Multi-path distribution and redundant sub-stations are standard for industrial corridors serving critical infrastructure in the Amazon basin as of January 2026.

Market Access, Business & Tax Climate

Cacoal is a key economic driver for Rondonia, serving as a gateway to the western Amazon region.

Proximity To Key Business Districts: Data centers in this market support the agribusiness and logistics sectors that dominate the regional economy. This proximity ensures minimal latency for automated processing and local management systems as of January 2026.

Regional Market Reach: This location serves the population of eastern Rondonia and parts of Mato Grosso. It provides a localized digital footprint for over 500,000 residents and businesses as of January 2026.

Tax Advantage For Data Centers: Brazil provides specific federal and state level incentives for digital infrastructure. Customers benefit from tax exemptions on capital expenditures regarding import tariffs for specialized server and cooling equipment as of January 2026.

Natural Disaster Risk

The environmental risk profile for Cacoal is categorized as High (5.2/10), as of January 2026. Most risk factors relate to hydrological patterns rather than seismic activity.

  • River Flood (7.7): This is the primary environmental concern for the region, requiring facilities to implement elevated flooring and advanced drainage as of January 2026.
  • Epidemic (6.4): This factor impacts regional risk scoring and can influence operational labor continuity.
  • Drought (4.5): Periodic dry seasons can impact the broader hydro-electric energy supply, though industrial tiers typically maintain priority.
  • Earthquake (0.5): Seismic risk is negligible, making the region stable for heavy physical structures.

Coastal Flood and Tsunami risks are not material to this location due to its inland position. All other natural hazards are considered minor as of January 2026.

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