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Data Centers in Cascavel

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Cascavel – Strategic Hub for Southern Brazil

Cascavel is an emerging data center market ideal for organizations targeting Southern Brazil and neighboring countries. Its strategic location provides a crucial alternative to the primary hubs of São Paulo and Rio de Janeiro, offering a resilient platform for latency-sensitive applications in agribusiness, logistics, and regional commerce. This market is built for companies prioritizing geographic diversity and efficient service delivery across the Southern Cone.

Cascavel: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid connectivity for a secondary market, with pathways to major national hubs.
Direct Cloud On-Ramps0 – as of September 2025Nearest on-ramps are in São Paulo; private network extensions are available.
Power CostR$0.65-R$0.80/kWhA competitive rate, reflecting Brazil's significant hydroelectric generation capacity.
Disaster RiskHigh (5.2/10) – as of September 2025Primarily driven by flood and drought risk; seismic and cyclone risks are negligible.
Tax IncentivesYesIncludes specific exemptions for imported IT and data center capital expenditures.
Sales Tax18% (Multiple) – as of September 2025Comprises ICMS, PIS-COFINS, and ISS taxes, which vary by service type.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Cascavel supports a developing ecosystem with access to national and regional carriers through its two colocation facilities, as of September 2025. While not as dense as São Paulo, the market provides sufficient options for redundant connectivity, with both facilities operating on a carrier-neutral basis.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Cascavel as of September 2025. Businesses require private network connections or wave services to connect to the primary cloud regions located in São Paulo, which hosts on-ramps for all major providers.

Internet Exchange Points (IXPs) The market does not host a major public Internet Exchange Point. Most network peering for this region is handled privately or routed through the major IXPs in larger hubs like Curitiba and São Paulo, ensuring efficient traffic exchange on a national level.

Bare Metal Bare metal server options are available, primarily through providers that can service regional markets from São Paulo. Companies like Latitude.sh offer deployments well-suited for reaching end-users in Southern Brazil.

Power Analysis

Average Cost Of Power Industrial power costs in the region range from R$0.65 to R$0.80 per kWh, as of September 2025. This pricing is competitive and benefits from Brazil's energy mix, which is dominated by hydropower. Stable energy costs provide a predictable operational expense model for high-density deployments.

Power Grid Reliability Brazil's national power grid is generally reliable, especially in established commercial zones. The energy matrix is approximately 60% hydroelectric, supplemented by a growing share of wind, solar, and biomass. Data centers in the region are engineered with multi-layer redundancy, including backup generators and UPS systems, to mitigate any potential grid instability.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Cascavel are strategically positioned to serve the city's robust agribusiness and logistics sectors. This proximity provides low-latency connectivity for commodity trading platforms, supply chain management systems, and other critical applications driving the regional economy.

Regional Market Reach Cascavel serves as a digital gateway to Brazil's southern states of Paraná, Santa Catarina, and Rio Grande do Sul. Its location near the borders of Paraguay and Argentina also makes it a strong base for companies looking to serve the wider Mercosur trading bloc.

Tax Advantage For Data Centers Brazil offers significant tax incentives for data center development. These programs provide exemptions on import tariffs for IT-related capital expenditures, effectively reducing the upfront cost of deploying servers and network hardware. This financial advantage helps accelerate infrastructure build-outs and lowers the total cost of ownership.

Natural Disaster Risk

Cascavel has a high overall risk profile, rated 5.2 out of 10, as of September 2025. The risk assessment is primarily influenced by non-geophysical factors and specific natural hazards.

Key risks for this inland location include:

  • River Flood: Score of 7.7
  • Drought: Score of 4.5
  • Epidemic: Score of 6.4

The risk from earthquakes and tropical cyclones is negligible. While the national profile includes coastal flooding, it does not directly impact facilities in Cascavel. Infrastructure is engineered to address the primary regional risks, particularly those related to flooding.

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