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Recife – High-Performance Hub for Northeast Brazil

Executive Summary

Recife is the primary colocation hub for organizations targeting Northeast Brazil, serving as a critical alternative to the saturated markets in the South. Deploying here secures low-latency access to a regional market of 50 million people while leveraging a specialized tech ecosystem. This location is essential for providers prioritizing regional speed and local redundancy.

Recife: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional peering via major local exchanges.
Direct Cloud On-Ramps0 – as of January 2026Nearest major on-ramp hub is São Paulo.
Power CostR$ 0.68/kWh – as of January 2026Competitive rates with a hydro-dominant mix.
Disaster RiskHigh (5.2/10) – as of January 2026Risk driven by flooding and hydrometeorological factors.
Tax IncentivesYesIncludes tariff exemptions for imported IT hardware.
Sales Tax18% VAT – as of January 2026Combined ICMS, PIS-COFINS, and local ISS rates.

Network & Connectivity Ecosystem

Recife functions as the most connected city in the Northeast, acting as a regional traffic aggregator. As of January 2026, the market maintains reliable infrastructure for local and international data transit.

Carrier Density & Carrier Neutrality: Carrier count: over 15 as of January 2026. The market features a blend of national giants and specialized regional providers, ensuring competitive transport options. This density provides the redundancy needed for reliable service level agreements.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of January 2026. Direct hyperscale on-ramps are located in São Paulo. Local operators provide high-capacity private waves to bridge the distance, maintaining performance for regional application delivery.

Internet Exchange Points (IXPs): IX.br Recife is the dominant exchange, keeping local traffic within the region to minimize latency and transit costs as of January 2026.

Bare Metal: General availability is provided through regional players and global specialists like Latitude.sh as of January 2026.

Power Analysis

Recife benefits from a renewable-heavy energy strategy, though pricing remains sensitive to seasonal hydrologic conditions in the Northeast.

Average Cost Of Power: R$ 0.68/kWh, as of January 2026. The grid mix is approximately 60% hydro and 22% other renewables, providing a sustainable profile for corporate ESG goals. This pricing supports deployments without the premium found in Southern Brazil.

Power Grid Reliability: The electrical infrastructure in major data center corridors is well-engineered and supported by multiple substations as of January 2026. Most facilities utilize the reliability of the Porto Digital district utility priority, ensuring stable operations for critical workloads.

Market Access, Business & Tax Climate

Recife is a specialized tech economy with a business-friendly posture for infrastructure investors.

Proximity To Key Business Districts: Data centers are positioned near Porto Digital and the Ilha do Leite medical and financial district as of January 2026. This proximity ensures minimal latency for high-value service industries.

Regional Market Reach: A deployment in Recife provides efficient coverage for the entire Northeast region, a market comprising over 50 million people as of January 2026. This makes it a suitable edge location for content delivery.

Tax Advantage For Data Centers: Federal and state programs offer tax breaks on capital expenditures for IT infrastructure as of January 2026. These incentives reduce the cost of importing specialized server and cooling hardware, lowering the total cost of ownership.

Natural Disaster Risk

Recife faces a High risk profile, with a score of 5.2/10 as of January 2026. The risk is concentrated in environmental factors rather than seismic activity.

Overall Label: High (5.2/10) as of January 2026.

  • River Flood (7.7): The most significant hazard; site selection must prioritize elevated geographies or resilient facilities.
  • Coastal Flood (5.0): A material risk for infrastructure near the shoreline; indirect inland impacts exist.
  • Drought (4.5): Moderate risk that can influence hydroelectric power availability and cooling costs.
  • Earthquake (0.5): Negligible risk; the region is seismically stable.
  • Tsunami (0.0): No documented material risk for data center infrastructure.
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