Latin America Data Center Market Share Analysis, Forecast and Outlook 2033

Market Overview

The Latin America data center market was valued at USD 15.38 Billion in 2024 and is forecasted to reach USD 32.74 Billion by 2033, growing at a CAGR of 8.11% from 2025 to 2033. This growth is driven by strong adoption of cloud services, digital transformation, and increased data storage demand. Investments in infrastructure, improved security, compliance, and operational efficiency further propel the market. Data centers are pivotal for AI, IoT, and big data advancements, fueling the market expansion.

Study Assumption Years

• Base Year: 2024

• Historical Year/Period: 2019-2024

• Forecast Year/Period: 2025-2033

Latin America Data Center Market Key Takeaways

• Current Market Size: USD 15.38 Billion (2024)

• CAGR: 8.11%

• Forecast Period: 2025-2033

• Growing adoption of cloud services and digital transformation across Latin America is a major growth catalyst.

• Significant investments by global tech firms like Microsoft and AWS are expanding hyperscale data center infrastructure.

• Increasing data security and regulatory compliance requirements push demand for locally managed data centers.

• Rapid AI adoption is driving the need for advanced high-compute data centers supported by government initiatives.

• The market sees rising demand from sectors such as BFSI, IT and Telecom, government, and energy.

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Market Growth Factors

Cloud computing and digital transformation have driven the Latin America data center market growth. Companies shifting into cloud infrastructure, storage, and processing have increased the need for quality data centers across the region. Microsoft made a commitment to open its first hyperscale cloud data center inside Mexico in May 2024. The data center is expected to provide digital services and create more than 300,000 jobs within a region increasingly connected in technologies such as the Internet of Things (IoT) and big data analytics.

Also contributing to growth are data security and regulatory compliance. Stringent data protection laws in Latin American countries have strengthened demand for secure, compliant data center facilities, with a need for local data centers due to regulations. Government investments and incentives for infrastructure, such as the $500 million Scala AI City project in Brazil in December 2024, also help foster innovation and job creation in the data center market.

Several of the key global technology companies have invested heavily in the infrastructure of the Brazil data center market. Investments into data centers and cloud computing for the Brazil data center market are expected to be $51.62 Billion from 2024 to 2027. AWS also pledges $5 Billion to digital city in Querétaro, Mexico (January 2025), promising 7000 jobs a year. In Brazil, Microsoft announces a $2.7 Billion investment (September 2024) for expansion of capacity in cloud and AI, including training for 5 million people. These inflows also help spur the growth in digital infrastructure.

Market Segmentation

By Component:

• Solutions: Includes servers, storage devices, and networking hardware. Growth driven by demand for high-performance computing, cloud integration, and scalable infrastructure; also focused on energy efficiency and modular options.

• Services: Covers deployment, maintenance, managed services, and consulting. Key for operational reliability and supporting hybrid IT environments with growing demand for expert continuous monitoring.

By Type:

• Colocation: Preferred for shared infrastructure, reducing capital expenditure, favored by mid-sized firms and financial institutions for scalability and compliance.

• Hyperscale: Rapid growth supported by global cloud providers and tech giants; optimized for large-scale data processing to support AI, IoT, big data with Brazil and Mexico as key locations.

• Edge: Important for processing data near source to reduce latency, crucial for manufacturing, transportation, retail sectors; pushed by 5G and IoT rollout.

• Others

By Enterprise Size:

• Large Enterprises: Major contributors demanding advanced, reliable, and scalable infrastructure supporting cloud computing, analytics, and AI, prioritizing compliance.

• Small and Medium Enterprises: Increasingly utilize colocation and managed services for scalable, cost-effective IT modernization without heavy capital investment.

By End User:

• BFSI: High data center demand due to secure real-time processing and regulatory compliance needs in digital banking and fintech.

• IT and Telecom: Backbone of data center ecosystem supporting cloud services, mobile connectivity, and content delivery, advancing edge and hyperscale.

• Government: Reliant on data centers for public services, digital records, e-governance with focus on cybersecurity and transparency.

• Energy and Utilities: Uses data centers for smart grid management, predictive maintenance, energy analytics, integrating IoT and automation.

• Others

Regional Insights

Brazil dominates the Latin America data center market with its advanced digital ecosystem, robust connectivity, and high cloud services demand. Cities like São Paulo and Rio de Janeiro host numerous hyperscale and colocation facilities. Brazil’s regulatory framework and strategic location position it as a regional data traffic hub. The country is expected to attract USD 51.62 Billion in data center and cloud investments (2024-2027). Mexico is an emerging key market supported by strong connectivity and proximity to North America, fueling cloud adoption and e-commerce growth. Other countries like Argentina, Colombia, Chile, and Peru show gradual market expansion.

Recent Developments & News

In May 2025, Pátria launched Omnia, a USD 1 Billion platform for AI-ready hyperscale data centers in Brazil, Mexico, and Chile, emphasizing sustainability with wind energy power. Roblox started building a new data center in São Paulo, Brazil, expected in 2026, to reduce latency for millions of users. Brazilian ISP Nicnet launched a data center in Cravinhos with 12 racks providing colocation and Edge services. Odata opened its SP04 data center in Osasco with 48MW capacity and R$2.6 billion investment powered by renewable energy. Petrobras launched a tender for colocation providers near Rio and São Paulo for HPC systems. Alibaba Cloud inaugurated its first data center in Mexico in February 2025, expanding cloud and AI services.

Key Players

• Microsoft

• AWS

• Eldorado do Sul

• Scala Data Centers

• Pátria

• Roblox

• Nicnet

• Odata

• Petrobras

• Alibaba Cloud

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