Data Centers in São Paulo

São Paulo – South America's Premier Digital Hub

Executive Summary

São Paulo is the undisputed digital gateway to Brazil and South America, built for global enterprises and content providers. Its dense ecosystem of data centers and direct cloud on-ramps ensures the lowest latency for reaching the continent's largest economy. This concentration translates directly to a superior end-user experience and reliable application delivery.

São Paulo: At A Glance

Network & Connectivity Ecosystem

São Paulo is the center of gravity for digital infrastructure in South America. The market's maturity and density provide exceptional options for interconnection, ensuring high performance and resiliency for any deployment.

Carrier Density & Carrier Neutrality: The market features excellent network density, with over 45 unique network service providers available across numerous carrier-neutral facilities as of September 2025. This robust competition ensures competitive pricing and diverse routing options.

Direct Cloud On-Ramps: With over 7 dedicated cloud on-ramps, São Paulo provides direct, low-latency connectivity to 5 distinct cloud regions as of September 2025. Major public clouds with a direct presence include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): The market is anchored by IX.br (São Paulo), one of the world's largest internet exchanges by traffic volume. Its presence dramatically reduces latency for domestic traffic by keeping it within Brazil, improving performance for local users.

Bare Metal: Bare metal services are readily available from providers like Latitude.sh and Hivelocity, offering dedicated compute for performance-sensitive workloads that require direct hardware access.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated between R$0.65–R$0.85/kWh as of September 2025. This pricing is competitive for the region and is supported by a grid dominated by renewable hydroelectric power, which can aid in meeting corporate sustainability targets.

Power Grid Reliability: The power grid supporting São Paulo's primary data center clusters is well-engineered, with modern facilities offering multi-substation support and N+1 or 2N redundancy. This design ensures stable operations for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located to serve key business districts like Faria Lima, Avenida Paulista, and the corporate hub of Alphaville. This proximity provides low-latency access for the country's dominant financial services, technology, and enterprise sectors.

Regional Market Reach: From São Paulo, businesses can effectively serve Brazil's entire population of over 215 million people. The city also acts as a primary digital hub for routing traffic to and from neighboring South American countries.

Tax Advantage For Data Centers: Brazil offers significant tax incentives, including tariff exemptions on imported data center hardware and IT equipment. This program directly reduces the capital expenditure required for building out or upgrading physical infrastructure.

Natural Disaster Risk

Brazil's overall disaster risk profile is rated High, with an INFORM score of 5.2 out of 10 as of September 2025. For the inland metro of São Paulo, the primary natural hazards are driven by weather and climate events rather than seismic activity.

Key risks for the region include:

• River Flood: (7.7/10)
• Drought: (4.5/10)
• Coastal Flood: (5.0/10) - A regional, not direct, risk.

Risks from earthquakes and tropical cyclones are negligible, making the area geophysically stable for data center operations.