Data Centers in Cascavel

Cascavel – Your Strategic Hub for Southern Brazil

Executive Summary

Cascavel is an emerging edge data center market positioned to serve Brazil's vital southern agricultural and industrial regions. This location provides a compelling alternative to the congested primary hubs of São Paulo and Rio de Janeiro, offering a strategic location for disaster recovery and low-latency performance for regional end-users. Businesses deploying infrastructure here gain access to a growing economic area while capitalizing on Brazil's significant data center tax incentives.

Cascavel: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As of September 2025, Cascavel has 2 data centers. The market is served by a focused group of national and regional carriers, providing essential connectivity for local enterprises. Carrier neutrality is available, allowing choice in network providers.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Cascavel, as of September 2025. Businesses require private network connections to access cloud provider fabrics in major hubs like São Paulo.

Internet Exchange Points (IXPs): Public peering is limited within the city. Most network peering for this region occurs privately or through the national exchange, IX.br, with primary nodes located in São Paulo.

Bare Metal: Bare metal server options are available, primarily through providers with a strong presence across Brazil. Services from providers like Latitude.sh can deliver dedicated compute resources for performance-sensitive workloads in the region.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the region typically range from R$0.65 – R$0.85/kWh, as of September 2025. Brazil's power grid is dominated by hydroelectric sources (~60%), supplemented by other renewables, which provides a cost-effective and relatively green energy profile for data center operations.

Power Grid Reliability: The national grid is well-engineered, with a heavy reliance on hydropower ensuring a stable baseload. Data centers in the region are supported by this infrastructure, though local distribution quality can vary outside of primary commercial zones.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Cascavel are strategically located to support one of Brazil's most important agribusiness centers. This proximity is critical for agritech, logistics, and manufacturing companies that require low-latency processing and data storage.

Regional Market Reach: Cascavel provides effective digital infrastructure access for southern Brazil, including the states of Paraná, Santa Catarina, and Rio Grande do Sul. Its location also offers a potential gateway for serving markets in neighboring Paraguay and Argentina.

Tax Advantage For Data Centers: Brazil offers tax breaks and exemptions for IT-related capital expenditures, a significant benefit for data center operators. This includes tariff exemptions for imported data center equipment, directly reducing the cost of building or expanding facilities.

Natural Disaster Risk

Cascavel has a high overall risk profile, with a score of 5.2 out of 10, as of September 2025. This rating is influenced more by institutional and socio-economic vulnerability factors than by natural disasters.

The primary natural hazards for the area include:

• River Flood: The most significant natural threat, with a risk score of 7.7.
• Drought: A moderate risk factor at 4.5.
• Earthquake: Risk is very low, with a score of 0.5.

Tropical cyclone and tsunami risks are negligible for this inland location.