Latin America Data Center Market Reaches USD 32.74 Billion Valuation Amid 8.11% Annual Growth Surge

Market Overview

The Latin America data center market was valued at USD 15.38 Billion in 2024 and is projected to reach USD 32.74 Billion by 2033, growing at a CAGR of 8.11% during 2025-2033. Growth is driven by rising cloud service adoption, digital transformation, increasing data storage demand, and significant technology investments. Data centers support the expanding AI, IoT, and big data applications in the region.

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Study Assumption Years

Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Latin America Data Center Market Key Takeaways

The market size was USD 15.38 Billion in 2024.
The market is expected to grow at a CAGR of 8.11% from 2025 to 2033.
Forecasted market value is USD 32.74 Billion by 2033.
Microsoft launched its first hyperscale cloud data center region, Mexico Central, in May 2024, creating over 300,000 jobs.
Brazil is projected to attract approximately USD 51.62 Billion in data center and cloud computing investments between 2024 and 2027.
AI adoption is expected to contribute to a 4.2 percentage point GDP increase in Brazil by 2030.
Governments in Latin America plan to invest USD 4 Billion between 2024 and 2028 to support AI, national data centers, startups, and MSMEs.

Market Growth Factors

The Latin America data center market growth is fueled by the widespread adoption of cloud services and digital transformation. Companies increasingly rely on cloud-based infrastructure and storage, leading to heightened demand for quality data center facilities. Microsoft's initiative in May 2024 to launch a hyperscale cloud data center region in Mexico Central aims at enhancing digital capacity, economic growth, and job creation exceeding 300,000 roles. The rising number of IoT devices, connected technologies, and big data analytics further reinforce demand for data management solutions.

Data security and regulatory compliance provide another growth impetus. Latin American countries are tightening data protection regulations, pressing businesses to use secure and compliant data centers, fueling demand for locally managed facilities. Government incentives and infrastructure investments also stimulate market expansion. For example, Eldorado do Sul in Brazil approved a USD 500 million investment for Scala AI City, Latin America's first data center city, aiming to foster economic recovery and technological innovation post-2024 floods.

Significant investments by global tech companies mark another key driver. Brazil alone is expected to attract about USD 51.62 Billion for data center and cloud computing from 2024 to 2027. AWS announced a USD 5 Billion investment in Querétaro, Mexico, in January 2025 for a digital metropolis focused on cloud and AI services, potentially generating 7,000 jobs annually. Microsoft plans to invest roughly USD 2.7 Billion in Brazil for cloud and AI infrastructure expansion, including AI training for five million people. These efforts underscore the growing priority of Latin America in the global digital ecosystem.

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Market Segmentation

By Component:

Solutions: Comprise servers, storage devices, and networking hardware. Growth is driven by demand for high-performance computing, cloud integration, and energy-efficient modular infrastructure.
Services: Include deployment, maintenance, managed services, and consulting. High demand exists for expert support in complex IT environments and continuous monitoring.

By Type:

Colocation: Preferred for shared infrastructure that reduces costs, offering reliable power, cooling, and security, favored by mid-sized firms and financial institutions.
Hyperscale: Growing rapidly with global cloud providers investing, focusing on AI, IoT, and big data applications. Brazil and Mexico are key locations.
Edge: Important for processing data near the source, reducing latency, vital for manufacturing, transportation, and retail sectors, boosted by 5G and IoT rollout.

By Enterprise Size:

Large Enterprises: Major data center consumers due to complex IT needs, prioritizing scalability, reliability, and regulatory compliance, and early adopters of AI and hybrid cloud.
Small and Medium Enterprises (SMEs): Increasingly use colocation and managed services for flexibility and scalability without heavy capital expenditure.

By End User:

BFSI: Requires secure, real-time data processing and compliance for digital banking and fintech solutions.
IT and Telecom: Backbone of the ecosystem, supporting cloud services, content delivery, and communication platforms, leading in edge and hyperscale development.
Government: Adopting data centers for e-governance, cybersecurity, and smart city projects.
Energy and Utilities: Use data centers for managing smart grids, predictive maintenance, and energy analytics, integrating IoT and automation.

Regional Insights

Brazil dominates the Latin America data center market, driven by its advanced digital ecosystem, robust connectivity, and strong cloud service demand. Cities like São Paulo and Rio de Janeiro host multiple hyperscale and colocation centers. The country's regulatory environment and strategic location make it a regional data traffic hub, reinforcing Brazil's leadership position.

Recent Developments & News

In May 2025, Pátria launched Omnia, a USD 1 Billion AI-ready hyperscale data center platform across Brazil, Mexico, and Chile, powered by wind energy. Roblox began constructing a new data center in São Paulo in May 2025, aimed for 2026 launch. Nicnet launched its first data center in Cravinhos, São Paulo, in March 2025, offering colocation and Edge services. Odata opened its SP04 data center in Osasco, São Paulo, in March 2025 with 48MW capacity. Petrobras launched a tender seeking Brazilian colocation providers for HPC and mission-critical systems in March 2025. Alibaba Cloud established its first data center in Mexico in February 2025, expanding its Latin America presence.

Key Players

Pátria
Roblox
Nicnet
Odata
Petrobras
Alibaba Cloud

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