Data Centers in Campina Grande
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Campina Grande – Strategic Hub for Brazil's Northeast
Executive Summary
Campina Grande is an emerging data center market for organizations requiring low-latency performance in Brazil's underserved Northeast region. Locating here provides a strategic advantage for reaching millions of end-users and key regional industries more effectively than from the primary hubs of São Paulo or Rio de Janeiro. This market is ideal for content delivery, education, and technology firms targeting regional growth.
Campina Grande: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a regional hub, with improving national fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in São Paulo; access requires network extension services. |
| Power Cost | R$0.60 – R$0.80/kWh (est.) | Dominated by hydropower, offering predictable costs compared to fossil-fuel-dependent grids. |
| Disaster Risk | High (5.2/10) – as of September 2025 | Overall risk is high, driven by socio-economic factors more than natural disasters. |
| Tax Incentives | Yes | DC-specific breaks on imported IT equipment and capital expenditures are available. |
| Sales Tax | 18% (Multiple) – as of September 2025 | A combination of state (ICMS) and federal (PIS-COFINS/ISS) taxes applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: A growing number of national and regional fiber carriers serve Campina Grande, providing competitive connectivity options. The market supports carrier-neutral facilities, which allow interconnection between multiple providers to improve resilience and reduce costs, as of September 2025.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Campina Grande, as of September 2025. All major public clouds are accessed via the primary Brazilian hubs, primarily São Paulo. Businesses connect to these hubs through private network interconnects (PNI) or wavelength services offered by national carriers.
Internet Exchange Points (IXPs): While there isn't a major public IXP within the city itself, facilities in Campina Grande can connect to Brazil's national IX.br infrastructure. This connection, often through nearby network PoPs, enables efficient local and regional traffic peering, reducing transit costs and improving latency for users in the Northeast.
Bare Metal: Bare metal server options are available, typically provisioned from providers with a presence in Brazil's major markets like São Paulo. Providers such as Latitude.sh and Hivelocity offer dedicated server solutions that can serve the entire country, including the Northeast region.
Power Analysis
Average Cost Of Power: Industrial power costs are estimated to range from R$0.60 – R$0.80/kWh, as of September 2025. Brazil's grid is dominated by hydroelectric power (~60%), supplemented by other renewables (~22%), which helps stabilize energy prices. This favorable energy mix provides a more predictable operational expense for high-density compute.
Power Grid Reliability: The power grid in key commercial areas of Campina Grande is generally stable. Data centers in the region are engineered with standard redundancy, including multiple substation feeds, UPS systems, and on-site generators to ensure continuous uptime and meet service-level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Campina Grande serve a key technology and academic hub in the state of Paraíba. The city's proximity to federal universities and research parks makes it an ideal location for supporting education technology, scientific computing, and software development industries.
Regional Market Reach: Campina Grande provides a crucial low-latency connection point to the nearly 60 million people in Brazil's Northeast. Deploying infrastructure here dramatically improves application performance and user experience for a large and growing consumer and business market.
Tax Advantage For Data Centers: Brazil provides federal tax incentives specifically for data center investments. These programs can significantly lower capital expenses by offering exemptions on tariffs for imported server, storage, and networking equipment.
Natural Disaster Risk
Campina Grande has a high overall risk profile, with an INFORM score of 5.2 out of 10, as of September 2025. This rating is influenced more by Brazil's national socio-economic and institutional vulnerabilities than by local natural hazards.
The primary environmental risks for infrastructure in this region include:
- River Flood: The most significant natural hazard, with a risk score of 7.7.
- Epidemic: Poses a high risk to population and workforce stability (6.4).
- Drought: A notable regional concern with a score of 4.5.
- Earthquake: Risk is negligible, with a score of 0.5.
