Data Centers in Recife
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Recife – Northeast Brazil's Digital Hub
Recife is the primary digital gateway for Northeast Brazil, serving as a critical hub for submarine cable landings and regional connectivity. This market is built for companies needing to deliver low-latency services to the millions of users in Brazil's fast-growing northeastern region, reducing reliance on the more distant hubs of São Paulo and Rio de Janeiro. Deploying here ensures better application performance and resilience for a significant and expanding consumer base.
Recife: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong submarine cable access; terrestrial connectivity is developing. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in São Paulo; private network extensions available. |
| Power Cost | R$0.65-R$0.80/kWh | Highly renewable grid (~82%) dominated by hydropower. |
| Disaster Risk | High (5.2/10) | Primarily driven by flood risk; seismic and storm risks are very low. |
| Tax Incentives | Yes | Includes DC-specific breaks and tariff exemptions for imported IT equipment. |
| Sales Tax | Multiple rates (avg. 18%) | Combination of ICMS, PIS-COFINS, and ISS, as of September 2025. |
Network & Connectivity Ecosystem
Recife's connectivity is defined by its strategic coastal location, making it a major landing point for transatlantic submarine cables connecting to Africa, Europe, and North America.
Carrier Density & Carrier Neutrality Recife has a growing ecosystem of local and national carriers, with over 4 data centers available as of September 2025. The market offers access to multiple carrier-neutral facilities, providing choice for network redundancy and interconnection.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Recife's data centers as of September 2025. Businesses require private or virtual connections to the primary cloud regions located in São Paulo to achieve dedicated cloud access.
Internet Exchange Points (IXPs) The metro is a key location for IX.br (PTT.br), Brazil's national internet exchange. This presence allows for efficient, low-latency traffic exchange between local networks, content providers, and enterprises throughout the region.
Bare Metal Bare metal server options are available in Recife, supporting compute-intensive workloads that require dedicated hardware. Providers such as Latitude.sh offer deployments in the region.
Power Analysis
Brazil's national grid is one of the cleanest in the world, a significant advantage for sustainability goals.
Average Cost Of Power Industrial power costs in the Recife area typically range from R$0.65 to R$0.80 per kWh (approximately $0.12-$0.15/kWh) as of September 2025. This rate is competitive for Latin America and is supported by a grid composed of over 80% renewable sources, primarily hydropower.
Power Grid Reliability The power grid serving Recife's primary business districts is reliable for commercial operations. Data centers in the region are supported by modern substation architecture and provide extensive on-site redundancy with UPS and generator backup systems.
Market Access, Business & Tax Climate
Recife offers a strategic base for reaching Brazil's third-largest metropolitan area and the wider northeastern region.
Proximity To Key Business Districts Data centers in Recife are located near key commercial areas, including the Porto Digital technology park. This innovation district houses hundreds of tech companies, startups, and research institutions, making it a center of gravity for digital business.
Regional Market Reach From Recife, businesses can effectively serve a population of over 55 million people across Northeast Brazil. Its submarine cable links also provide an advantageous point for connecting to markets in West Africa and Southern Europe.
Tax Advantage For Data Centers Brazil offers significant tax incentives for technology and infrastructure investments. These programs provide exemptions on import tariffs for data center equipment and can reduce taxes on certain IT-related capital expenditures, lowering the total cost of deployment.
Natural Disaster Risk
Recife has a high overall risk profile, rated 5.2 out of 10 by INFORM Risk as of September 2025. The risk is almost entirely concentrated in specific, well-understood weather and climate-related hazards.
- River Flood: The most significant natural hazard, with a risk score of 7.7 out of 10.
- Coastal Flood: A notable risk for a coastal city, scored at 5.0 out of 10.
- Drought: A regional concern, with a risk score of 4.5 out of 10.
Risks from earthquakes (0.5), tsunamis (0), and tropical cyclones (0) are negligible, making the primary site selection criteria an evaluation of flood plains and elevation.
