Data Centers in Natal
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Natal – Strategic Gateway to Northeastern Brazil
Natal is an emerging edge market in Brazil, ideal for content delivery networks and service providers targeting the country's northeastern region. Locating infrastructure here reduces latency for a significant population center, improving user experience and service delivery for businesses expanding beyond the primary hubs of São Paulo and Rio de Janeiro.
Natal: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, with opportunities for international latency improvement. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available; the nearest public on-ramps are in São Paulo. |
| Power Cost | R$0.65-R$0.80/kWh | Industrial power costs are competitive for the region, leveraging a national grid. |
| Disaster Risk | High (5.2/10) – as of September 2025 | Primarily driven by flood and drought risk, typical for the region. |
| Tax Incentives | Yes | Includes tax breaks and exemptions for imported IT and data center equipment. |
| Sales Tax | 18% (Multiple) – as of September 2025 | A combination of ICMS, PIS-COFINS, and ISS applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a regional capital, Natal supports a variety of national and local carriers, with at least one carrier-neutral facility available, as of September 2025. The market provides sufficient options for redundant connectivity.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Natal, as of September 2025. Businesses require private network extensions (PNI or wave) to connect to major cloud provider regions, with the closest hubs located in São Paulo.
Internet Exchange Points (IXPs): Public peering is limited in Natal. Most network interconnection occurs via private peering or through the major national exchange points in São Paulo, ensuring traffic remains within Brazil.
Bare Metal: Bare metal server options are available in Natal, typically through providers that have a presence in northeastern Brazil. Providers like Latitude.sh offer compute solutions from nearby major markets, serving the region effectively.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Natal are estimated between R$0.65 and R$0.80 per kWh, as of September 2025. These costs are influenced by Brazil's national grid, which is dominated by hydropower. This provides a relatively stable cost base for colocation operations.
Power Grid Reliability: The power grid supporting Natal's commercial zones is reliable for standard business operations. Data centers in the area are engineered with full UPS and generator backup to meet uptime requirements. Brazil's power mix is approximately 60% hydro, 22% other renewables, 16% fossil fuels, and 2% nuclear.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Natal serve the city's key industries, including tourism, logistics, and government services. Low-latency connectivity is essential for these sectors as they increasingly rely on digital platforms.
Regional Market Reach: Natal provides a strategic location to serve the more than 55 million people in Brazil's northeastern region. It acts as a crucial edge location for reducing latency to cities like Recife and Fortaleza.
Tax Advantage For Data Centers: Brazil offers significant tax incentives for data center investment. These programs provide exemptions and reductions on import tariffs for IT equipment, which lowers the capital expenditure needed to build or expand infrastructure.
Natural Disaster Risk
Brazil has a High overall disaster risk rating of 5.2 out of 10, as of September 2025. For Natal, the primary natural hazards are related to weather and hydrology rather than seismic events.
Key risks include:
- River Flood: Score of 7.7
- Coastal Flood: Score of 5.0
- Drought: Score of 4.5
- Earthquake: Score of 0.5
The risk from tsunamis and tropical cyclones is negligible. The area's main operational challenges stem from potential flooding and the broader economic impact of drought conditions.
