Market Overview

The Latin America data center market was valued at USD 16.64 Billion in 2025 and is forecasted to grow to USD 32.91 Billion by 2034, expanding at a CAGR of 7.87% from 2026 to 2034. This growth is driven by accelerating digital transformation initiatives, rising cloud computing adoption, and large investments by global technology giants. The region's expanding internet penetration, e-commerce, fintech developments, and government digitization programs are boosting demand for scalable computing infrastructure.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Latin America Data Center Market Key Takeaways

• Market Size: USD 16.64 Billion in 2025
• CAGR: 7.87% (2026-2034)
• Forecast Period: 2026-2034
• Solution component leads with 63.01% market share in 2025, driven by growing needs for infrastructure management and virtualization platforms.
• Hyperscale data center type dominates with a 40.9% share, reflecting expansion by major cloud service providers.
• Large enterprises hold a dominant 69.92% market share due to their substantial IT infrastructure requirements.
• IT and telecom is the leading end-user segment with a 34.91% market share, propelled by telecom network expansion and 5G deployment.

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Market Growth Factors

Worldwide tech companies have invested in building cloud regions in Latin America, helping structure the cloud in the region. These hyperscale cloud providers expand availability zones in major metropolitan areas to increase resiliency and reduce latency, with their technical expertise and capital. Funding will be used to help comply with data sovereignty requirements, and new digital and AI services.

Cloud services are being adopted by banking, retail, manufacturing, and healthcare with high growth in Latin America. Organizations are adopting SaaS, IaaS, and PaaS that require large scale and scalable infrastructure. Remote working, e-commerce and fintechs handling large transaction volumes and the historically low penetration rate of cloud services among SMEs all lead to an increased addressable market for colocation and managed data centre services.

Increased nearshoring and the emergence of data localization laws has meant multinationals providing localized computing resources to meet local market demand. Furthermore, the increasing regulation of certain types of data to be processed onshore by national governments has resulted in consistent demand for data center capacity. These regulations, in combination with the re-alignment of the manufacturing supply chain and proximity to North American markets, have made Latin America an attractive opportunity for global technology investment.

Market Segmentation

Component

• Solution: Dominates with a 63.01% share in 2025, including infrastructure management platforms and virtualization software enabling efficient data center operations and workload automation.

Type

• Hyperscale: Leads market with 40.9% share in 2025, driven by large-scale facilities from major cloud providers supporting AI workloads and cloud services.
• Enterprise Size
• Large Enterprises: Hold 69.92% market share in 2025, representing primary demand due to significant IT infrastructure and digital transformation needs.

End User

• IT and Telecom: Leading segment with 34.91% market share in 2025, fueled by telecom expansion, 5G rollouts, and rising demand for edge computing.

Regional Insights

Brazil is the dominant hub in Latin America, spearheaded by São Paulo, which hosts the region’s largest colocation facility concentration. The country benefits from abundant renewable energy, extensive fiber connectivity via submarine cables, and active hyperscaler expansion establishing dedicated cloud regions. This positions Brazil as the primary growth engine within the Latin America data center landscape.

Recent Developments & News

In December 2025, TERRANOVA, a hyperscale data center platform launched by Actis, announced plans to invest USD 1.5 Billion over three years to develop modern campuses in Brazil, Mexico, and Chile. The first facility in Querétaro is expected to open in early 2026. Microsoft revealed in September 2024 plans to invest 14.7 Billion Reais (approximately USD 2.7 Billion) in Brazil and USD 1.3 Billion in Mexico to expand artificial intelligence and cloud infrastructure.

Key Players

• Microsoft
• Scala Data Centers
• Google
• TERRANOVA (Actis)

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