Data Centers in Palmas

Palmas – Digital Gateway to the Brazilian Heartland

Executive Summary

Palmas serves as the primary infrastructure anchor for the agricultural and government sectors in central Brazil, providing a secure inland alternative to coastal hubs. It is a vital choice for enterprises requiring data residency within the high-growth Matopiba region while maintaining reliable access to regional administrative centers.

Palmas: At A Glance

Network & Connectivity Ecosystem

Palmas functions as a specialized interconnection point for the state of Tocantins, managing traffic for the northern and central markets.

Carrier Density & Carrier Neutrality: Carrier count: under 10 as of September 2025. A focused group of regional providers and national firms maintain the local fiber backbone. While options are fewer than in major coastal metros, the existing providers offer reliable connectivity for regional requirements.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of September 2025. There are currently no local direct on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure. Connectivity to these platforms is achieved through private extensions or leased lines to the Sao Paulo hub.

Internet Exchange Points (IXPs): The IX.br Palmas exchange is the technical center for the region. It facilitates local peering, which keeps traffic within the state to reduce latency and transit expenses.

Bare Metal: High-performance bare metal services are available through regional providers and global specialists like Latitude.sh as of September 2025. These options provide the hardware control necessary for intensive data processing.

Power Analysis

Energy infrastructure in Palmas is built on a sustainable foundation, utilizing the region’s massive hydroelectric capacity.

Average Cost Of Power: Industrial electricity rates are approximately R$ 0.65/kWh as of September 2025. This pricing is competitive for the region and reflects a grid mix that is 60% hydro and 22% other renewables, supporting corporate sustainability goals.

Power Grid Reliability: The local grid is well-engineered with multi-substation support in commercial corridors. This redundant setup ensures the steady supply needed for reliable data center operations.

Market Access, Business & Tax Climate

Palmas offers a stable environment for infrastructure investment, acting as the digital gateway to the interior of Brazil.

Proximity To Key Business Districts: Data facilities are centrally located near the Plano Diretor Sul. This proximity is vital for government agencies and corporate headquarters that require immediate access to their physical hardware.

Regional Market Reach: As the primary hub for Tocantins, Palmas serves the Matopiba region. This area is one of the fastest-growing agricultural zones in South America, creating a significant demand for local compute capacity.

Tax Advantage For Data Centers: Federal and local programs provide relief on capital expenditures for IT infrastructure. These incentives focus on tariff exemptions for imported hardware, effectively lowering the cost of setting up high-density deployments.

Natural Disaster Risk

Palmas maintains a Low risk profile with a score of 5.2/10 as of September 2025. Its inland geography is a significant advantage for long-term infrastructure safety.

Risk Rubric: Low (5.2/10) as of September 2025.

• River Flood (7.7): This is the primary concern for the region. Facilities use elevated flooring and purpose-built drainage to manage seasonal water levels.
• Epidemic (6.4): Regional health factors are monitored but do not impact the physical safety of equipment.
• Drought (4.5): A moderate factor that can influence regional hydroelectric output during dry cycles.
• Earthquake (0.5): Minimal seismic activity makes the region a stable choice for sensitive hardware.

Coastal threats such as tsunamis and coastal flooding are not applicable to this market. All metrics are as of September 2025.