Data Centers in Recife
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Recife – Northeast Brazil's Digital Gateway
Recife serves as a critical digital infrastructure hub for Northeast Brazil, offering the essential connectivity needed to serve millions of end-users across the region. For companies targeting this expanding market, deploying in Recife reduces latency and improves application performance, directly impacting user experience and revenue. Its strategic coastal location also makes it a key landing point for subsea cables connecting to Africa and North America.
Recife: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with potential for growth in direct international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are São Paulo and Fortaleza; access via private network extension. |
| Power Cost | R$0.65-R$0.85/kWh (est.) | Dominated by hydroelectric power, offering stable but moderately priced industrial electricity. |
| Disaster Risk | High (5.2/10) – as of September 2025 | Primarily driven by flood and drought risk; seismic and storm activity is low. |
| Tax Incentives | Yes | DC-specific tax breaks available for IT capital expenditures, including tariff exemptions. |
| Sales Tax | Multiple (18%) – as of September 2025 | ICMS, PIS-COFINS, and ISS apply to services and goods. |
Network & Connectivity Ecosystem
Recife's connectivity ecosystem is defined by its role as a regional hub and subsea cable landing point. With 4 data centers operating in the market as of September 2025, it provides foundational colocation and interconnection services for Northeast Brazil.
Carrier Density & Carrier Neutrality The market is served by approximately 20-30 national and regional carriers. Carrier-neutral facilities provide essential access to this diverse network fabric, allowing businesses to optimize for cost and performance without being locked into a single provider.
Direct Cloud On-Ramps There are no direct, in-market public cloud on-ramps in Recife as of September 2025. Businesses connect to the 0 cloud regions in Brazil via dedicated links to major hubs like São Paulo and Fortaleza, where providers like AWS, Google Cloud, and Microsoft Azure maintain their access points.
Internet Exchange Points (IXPs) While private peering is common, the primary public exchange for the region is the IX.br (PTT.br) node in nearby Fortaleza. This exchange consolidates regional traffic, improving routing efficiency and reducing reliance on longer international paths for local data exchange.
Bare Metal Bare metal server options are available in the region, providing dedicated, high-performance computing without the overhead of virtualization. Providers like Latitude.sh offer deployments well-suited for workloads requiring direct hardware access.
Power Analysis
Average Cost Of Power Industrial electricity costs are estimated between R$0.65 and R$0.85 per kWh as of September 2025. Brazil's grid is dominated by hydroelectric power (~60%), supplemented by other renewables (~22%), which can lead to price fluctuations based on rainfall and reservoir levels. These moderate power costs are a key factor in total operational expenses.
Power Grid Reliability The power grid serving Recife's primary commercial zones is well-engineered for business continuity. Data center operators leverage this with multi-substation support, N+1 or 2N UPS systems, and on-site generator backup to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Recife are strategically located to serve key economic zones, including the Porto Digital technology park, one of Brazil's most important tech and innovation hubs. This proximity enables low-latency connectivity for software development, creative industries, and government services centered there.
Regional Market Reach Recife provides effective digital access to over 57 million people across the nine states of Northeast Brazil. Its location is ideal for content delivery networks, gaming platforms, and financial services looking to deliver a superior experience to this large and growing consumer market.
Tax Advantage For Data Centers Brazil offers federal tax incentives that directly benefit data center operators and tenants. These programs provide tariff exemptions for imported IT equipment, significantly lowering the capital investment required to deploy servers, storage, and networking hardware.
Natural Disaster Risk
Recife has a high overall risk profile, with an INFORM Risk score of 5.2 out of 10 as of September 2025. The risk is not uniform across all categories; it is concentrated in specific, manageable environmental hazards.
The primary natural hazards for the area include:
- River Flood: 7.7/10
- Coastal Flood: 5.0/10
- Drought: 4.5/10
- Earthquake: 0.5/10
Risks from tsunamis and tropical cyclones are negligible. While the overall score is high, modern data centers are engineered with specific mitigations for the most prominent threats, such as flooding.
