Data Centers in São Paulo

São Paulo – South America's Premier Digital Hub

Executive Summary

São Paulo is the undisputed digital capital of South America, built for businesses that require high-performance, low-latency access to Brazil's massive economy. Its dense ecosystem of 69 data centers and direct cloud on-ramps ensures optimal application delivery and a superior end-user experience across the continent. This concentration of infrastructure is critical for driving revenue and maintaining a competitive edge in the region.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: São Paulo features a dense and competitive market with approximately 50 unique network providers available in the top carrier-neutral facilities, as of September 2025. This diversity ensures competitive pricing and resilient network design options.

Direct Cloud On-Ramps: The market offers over 7 direct on-ramps providing private access to 5 major cloud regions, as of September 2025. Available providers include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): The primary public peering point is IX.br (São Paulo), one of the world's largest Internet Exchanges by traffic. Its presence significantly reduces latency for domestic and regional traffic delivery.

Bare Metal: Bare metal server options are widely available for performance-sensitive workloads. Providers like Latitude.sh and Hivelocity offer dedicated server solutions in the São Paulo market.

Power Analysis

Average Cost Of Power: The estimated cost for industrial power in São Paulo ranges from R$0.60 to R$0.85 per kWh, as of September 2025. This pricing, influenced by a national energy mix composed of over 80% renewables (primarily hydro), is competitive for the region and offers relative price stability.

Power Grid Reliability: The power grid supporting São Paulo's primary data center zones is well-engineered. Major facilities are supported by redundant power feeds from multiple substations to ensure high levels of uptime for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located to serve São Paulo's key financial and business districts, including Faria Lima and Paulista Avenue. This proximity enables low-latency connectivity for the financial services, e-commerce, and corporate sectors.

Regional Market Reach: From São Paulo, businesses can effectively serve Brazil's population of over 215 million people. The city also acts as a strategic hub for reaching other major South American markets like Argentina, Chile, and Colombia.

Tax Advantage For Data Centers: Brazil offers significant tax advantages for data center investments, primarily through exemptions on import tariffs for IT and network equipment. This federal incentive directly reduces the capital expenditure required to deploy and scale digital infrastructure within the country.

Natural Disaster Risk

Brazil has a Moderate overall disaster risk profile, with an INFORM Risk score of 5.2 out of 10, as of September 2025. The primary natural hazards affecting the São Paulo region are not seismic but climatological.

Key risks for the country include River Flood (7.7/10) and Drought (4.5/10). The direct risks of earthquakes, tsunamis, and tropical cyclones are negligible for São Paulo, making it a structurally safe location for data center infrastructure.