Latin America Data Center Colocation Market Size, Growth & Investment Forecast 2031 | Arizton

According to Arizton recent research the Latin America data center colocation market is entering a major investment phase, with the region expected to attract approximately USD 23.15 billion in cumulative data center investment from 2026 to 2031. Brazil is projected to account for around USD 11.53 billion, or 49.8%, of this investment, making the country a key market for colocation operators, infrastructure providers, and investors assessing expansion opportunities in Latin America.

The market by investment is projected to grow from USD 2.18 billion in 2025 to USD 5.10 billion by 2031, at a CAGR of 15.20%. Cloud adoption, AI, edge computing, big data, and IoT are increasing demand for colocation capacity, while construction activity from colocation and hyperscale operators is adding to the regional pipeline.

For businesses looking at where demand could develop next, the country-level picture is particularly important. Brazil has the region's largest investment opportunity, while Colombia, Chile, Mexico, and Argentina are strengthening their digital infrastructure and AI capabilities. Argentina is also seeking to attract global technology companies by promoting available land and low energy costs for AI development.

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The investment opportunity also extends beyond adding data center capacity. Construction costs across Latin America can range from USD 7 million to USD 10 million per MW, with land availability, labor costs, inflation, and power access influencing project economics. For developers and infrastructure suppliers, these factors can determine which locations are commercially attractive and where demand for power and electrical infrastructure is likely to emerge.

AI is creating another layer of opportunity as higher-density workloads increase cooling requirements. GPU-intensive environments are driving greater demand for advanced cooling solutions, while collaboration between operators, cooling technology vendors, chip manufacturers, and energy companies is becoming increasingly important. This creates opportunities for suppliers positioned around AI-ready cooling and supporting infrastructure.

Energy strategy is also becoming increasingly relevant to data center development. Operators across Latin America are adopting renewable energy, energy-efficient infrastructure, advanced cooling, and power-monitoring systems, while countries including Argentina, Brazil, Mexico, Chile, and Colombia pursue renewable-energy and carbon-reduction targets.

Beyond Brazil, Mexico, Chile, and Colombia are creating additional avenues for market entry and expansion. Telmex has announced plans for a new data center in Northeastern Mexico, while Chile had 39 operational facilities and nine upcoming facilities as of December 2025. Colombia is also strengthening its data center ecosystem and expanding access to renewable power.

Strategic activity is providing further evidence of interest in the region. In February 2026, Legrand acquired Green4T, a São Paulo-based data center infrastructure services provider, expanding its Latin American data center portfolio. Such moves highlight the potential for continued investment and strategic expansion across the regional infrastructure ecosystem.

For investors, colocation operators, developers, and technology suppliers, the value of the market lies in understanding where investment is moving, which countries are building capacity, what AI is changing inside facilities, and where power, cooling, and sustainability requirements are creating new demand.

Detailed visibility into these factors can help companies prioritize countries, identify upcoming infrastructure opportunities, evaluate market-entry potential, and align products and services with the next wave of Latin America's data center development.

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Latin America Data Center Colocation Market Report Covers
• How big is the Latin America data center colocation market, and how fast is it growing?
• What are the key trends shaping the Latin America data center colocation market?
• What will be the total data center area in Latin America by 2031?
• How much data center power capacity will Latin America add by 2031?
• Which countries are driving data center colocation growth across Latin America?
• Where are the key investment and capacity expansion opportunities emerging?

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Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.

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Source: Arizton Advisory & Intelligence

This release was published on openPR.