Latin America Accelerates Data Center Construction In Response To The Advance Of 5G

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Brazil, Mexico, Chile, Colombia, and Argentina are leading an accelerated expansion of digital infrastructure in Latin America, driven by the rollout of 5G, the growth of cloud computing, and increased processing demand associated with the rise of artificial intelligence (AI).

The expansion of data centers and cloud regions is transforming the regional digital map. Sectors such as near shoring, fintech, e-commerce, video games, streaming, and financial services are increasingly dependent on infrastructures that guarantee capacity, security, and lower latencies.

The result is a market that attracts multimillion-dollar investments from Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and other companies.

Main Latin American hubs

Brazil leads with 195 data center projects, approaching the global top 10.

São Paulo, Rio de Janeiro, and some northeastern states benefit from a mostly renewable energy matrix and a robust international connectivity network.

However, the country faces higher costs due to taxes, import barriers, and high energy prices. To encourage new investment, the government established a regime that requires the use of renewable energy and allocates at least 2% of resources to research and development.

TikTok announced last week an investment of $37.735 billion to build its first data center in Latin America, located in the Pecém Complex in Ceará.

In Mexico, the state of Querétaro has established itself as the main national hub and one of the most dynamic in the region. It accounts for 67% of the country's installed capacity within an inventory that now totals 587.2 MW, of which 475.7 MW are under development. This growth is putting pressure on the electrical infrastructure.

Monterrey, the State of Mexico, Mexico City, and Guanajuato are emerging as alternative hubs.

AWS inaugurated the 'Mexico Central' region in 2025 as part of a plan worth more than $5 billion; Microsoft has been operating the first Spanish-language cloud region in Latin America since 2023, and Google Cloud continues its expansion.

The sector demands greater regulatory certainty, more agile permits, and access to renewable energy.

Chile has 33 operational centers and 34 in the pipeline, with a total capacity of 198 MW, five times more than a decade ago.

Microsoft and AWS announced investments of $3.3 billion and $4 billion, respectively.

The government is promoting decentralization to areas such as Atacama and Magallanes, although environmental organizations are warning about the energy and water consumption of these facilities.

Argentina has an estimated idle capacity of between 30% and 40%, but experts warn that demand will force it to expand its surface area and modernize an electrical infrastructure that has not been updated for decades.

The country has gas associated with oil production that can be converted into energy for data centers, and, like Brazil, it has the potential to generate nuclear energy for computing supply.

OpenAI's announced investment of $25 billion requires planning on how to meet demand and which local companies will participate in the chain.

Colombia has at least 32 data centers, 23 of which are located in Bogotá, the result of cumulative investments of $786 million. With twelve submarine cables, it is the second country in the region in terms of this infrastructure after Brazil.

It also stands out in business services, according to the Offshore BPO Confidence Index 2025, ranking fourth worldwide with 84.2%.

Its cloud market is growing at an annual rate of 20.3% until 2028, with AWS controlling 56% of the sector.

In mobile connectivity, the country registered 102.5 million lines in 2025 and more than six million 5G accesses, an increase of 185% in one year.

The post Latin America Accelerates Data Center Construction in Response to the Advance of 5G appeared first on The Costa Rica News.

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