Data Centers in São Paulo

São Paulo – LATAM's Premier Interconnection Hub

Executive Summary

São Paulo is the undisputed digital capital of South America. This market is built for any organization requiring low-latency access to Brazil's massive consumer and business economy, serving as the primary gateway for content, cloud, and financial services across the continent. Locating here ensures optimal performance and reach within the region's most important economic engine.

São Paulo: At A Glance

Network & Connectivity Ecosystem

São Paulo's connectivity is the most advanced in South America, making it the default choice for any regional digital infrastructure strategy.

Carrier Density & Carrier Neutrality: With over 45 unique network providers active in the market as of September 2025, the city offers exceptional choice. The ecosystem is supported by a large number of carrier-neutral facilities, ensuring competitive pricing and high-performance routing.

Direct Cloud On-Ramps: The market features over 7 dedicated cloud on-ramps connecting to 5 distinct cloud regions as of September 2025. Direct, low-latency private access is available to all major hyperscalers, including 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 largest internet exchanges in the world. This IXP centralizes a massive amount of local and regional traffic, allowing for efficient and low-cost peering.

Bare Metal: Bare metal server deployment is readily available from a variety of providers. Global and regional specialists like Latitude.sh and Hivelocity offer dedicated server solutions for performance-sensitive workloads.

Power Analysis

Average Cost Of Power: Industrial power rates generally range from R$0.75 to R$0.95 per kWh as of September 2025. While not the cheapest globally, the cost is competitive for a Tier 1 market and is balanced by a grid dominated by renewable hydroelectric power.

Power Grid Reliability: Brazil's power grid is predominantly supplied by hydropower (~60%). The infrastructure serving São Paulo's primary data center zones is well-engineered, with significant redundancy and support from multiple substations to meet uptime requirements.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in São Paulo provide low-latency connectivity to the country's most critical financial and corporate hubs, including Avenida Paulista and Faria Lima. This proximity is essential for financial trading, e-commerce, and enterprise applications.

Regional Market Reach: From São Paulo, organizations can effectively serve the entire population of Brazil, over 215 million people. It also acts as the primary hub for reaching other major economies in the Mercosur trade bloc, including Argentina, Uruguay, and Paraguay.

Tax Advantage For Data Centers: Brazil offers specific tax incentives for data center investment. These programs can significantly lower capital costs by providing tariff exemptions on imported server, storage, and networking hardware.

Natural Disaster Risk

Overall natural disaster risk for São Paulo is rated as High (5.2 out of 10) as of September 2025. The risk profile is specific and does not include the typical threats of earthquakes or cyclones found in other global hubs.

Key risks for this region include:

• River Flood: The highest individual risk factor for the area.
• Coastal Flood: While the city is inland, this can impact national infrastructure and subsea cable connectivity.
• Drought: Can impact hydroelectric power generation, a primary energy source for the country.