Brazil Data Center Colocation Market - Supply And Demand Analysis, Growth Forecast 2026-2031 AI And Hyperscale Expansion Unlock Investment Opportunities
Dublin, Oct. 12, 2026 (GLOBE NEWSWIRE) -- "Brazil Data Center Colocation Market - Supply & Demand Analysis 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Brazil data center colocation market is projected to grow at a CAGR of 10.66% from 2025 to 2031, supported by cloud migration, artificial intelligence, machine learning, 5G deployment and enterprise digitalization. According to the report, utilized data center space is expected to reach 14.09 million square feet by 2031, while utilized racks are forecast to total 296.68 thousand units.
Sao Paulo remained Brazil's leading data center location in 2025, accounting for a substantial share of national capacity. Major operators in the city include Equinix, Ascenty, Scala Data Centers and ODATA (Aligned Data Centers). Land prices in Sao Paulo range from $15 to $25 per square foot. Brazil's 16 Export Processing Zones across 15 states, alongside Free Trade Zones such as Manaus FTZ, Macapa FTZ and Tabatinga FTZ, also contribute to an investment environment that supports infrastructure expansion.
Rack Density and AI Infrastructure
Average rack power density in Brazilian data centers ranged from 4 kW to 7 kW per rack in 2025. Demand for high-performance computing is accelerating the adoption of higher-density infrastructure for AI, ML and cloud computing workloads. Scala Data Centers' Scala AI City project reflects this shift, with rack capacities exceeding 150 kW compared with the 20 kW configurations commonly deployed in conventional facilities.
Recent Brazil Data Center Investments
- In June 2026, Ada Infrastructure began construction of the GRU10 data center campus. The development is planned to include three facilities with 300 MW of total power capacity, supporting cloud, artificial intelligence, machine learning, inference and large-scale GPU deployments. In April 2026, Equinix announced the launch of phase -1 of its SP6 facility in Sao Paulo. The phase includes 1,125 rack cabinets and represents a planned investment of $114 million. In January 2026, Ascenty signed a 110 MW renewable energy supply agreement with Casa dos Ventos under a self-production model. The approximately $500 million agreement is linked to wind and solar projects with more than 1.5GW of combined capacity expected online in 2027. It also provides Ascenty with an equity stake in the projects, strengthening long-term energy security.
Key Market Trends and Growth Drivers
Brazil's expanding digital economy is a primary driver of colocation demand. Internet penetration surpassed 86.5% in 2025, representing more than 184 million users. Public and private investment continues to advance digital adoption across education, healthcare, commerce and government services. Initiatives such as the Connected Education Innovation Policy are also supporting technology integration within public schools.
5G rollout and edge data center investment are strengthening Brazil's digital infrastructure. In February 2026, NEC and Nokia announced plans to support Eletronet in expanding Brazil's optical-fiber backbone by 8,000 km. The network is expected to reach 25,000 km across 23 states by the end of 2026, improving connectivity for cloud, telecom and data center operations.
The availability of skilled professionals remains a significant industry restraint. Brazil is projected to face a shortage of more than 500,000 technology professionals, particularly in data engineering, cloud architecture and AI. As of September 2025, the average recruitment period for digital and IT roles had increased from 45 days to 60 days, creating operational and expansion challenges for data center providers.
Colocation Demand and Revenue Outlook
The cloud & IT sector accounted for approximately 55% of Brazil's total colocation demand in 2025. Growth is being driven by enterprise cloud migration, hyperscale adoption, AI deployment, machine learning and broader digital transformation programs.
Retail colocation generated more than 60% of total market revenue in 2025. However, wholesale colocation is expected to approach 50% of revenue by 2031 as wholesale leasing, build-to-suit projects and hyperscale AI-ready infrastructure deployments increase.
Report Coverage
The report evaluates Brazil data center colocation market size by utilized white floor area, IT power capacity, racks and revenue. It assesses Core & Shell Vs Installed Vs Utilized IT Power Capacity, occupancy%, retail and wholesale pricing, add-ons, sustainability, cloud operations, submarine cable developments and industry demand. Coverage includes 84 existing facilities, 57 upcoming facilities and more than 30 states.
The competitive analysis examines operator market share based on IT power capacity and revenue, along with facility count, location, white floor area and planned development. Existing colocation operators covered include Elea Data Centers, Equinix, Ascenty, HostDime, Tecto Data Centers (V.tal), Scala Data Centers, Angola Cables, Cirion Technologies, OData (Aligned Data Centers), NextStream (Nabiax), Takoda Data Centers and Quantico Data Center.
New operators assessed include Ada Infrastructure, CloudHQ, Atlantic Data Centers, Aurea Finvest, 247 Data Centers, DataSpots, TERRANOVA (Actis), Parks Data Center, RT-One, and Supernova And Mapa Investimentos. The report is designed for data center Real Estate Investment Trusts (REITs), construction contractors, infrastructure providers, investors, new entrants, consultants, advisory firms, corporations and government agencies seeking insight into Brazil's data center colocation growth prospects through 2031.
Key Topics Covered
1. ABOUT THE ANALYST
2. ABOUT OUR DATA CENTER CAPABILITIES
3. RESEARCH METHODOLOGY
4. MARKET SCOPE
5. MARKET DEFINITIONS
6. MARKET SNAPSHOT:
- Colocation Market Snapshot
7. SUPPLY & DEMAND ANALYSIS:
- Existing vs Upcoming Data Center Facilities List of Upcoming Data Center Projects Market by IT Power Capacity (Core & Shell, Installed & Utilized (MW)) Core & Shell, Installed & Utilized Data Center Power Capacity by States Colocation Demand by Industry Market by Utilized Area Market by Utilized Racks
8. MARKET GROWTH FACTORS:
- Factors Attracting Colocation Investment in Brazil Impact of AI in Data Center Industry in Brazil Market Sustainability Status in Brazil Cloud Connectivity Cloud On-Ramps & Investment in Brazil Submarine Cables & Inland Connectivity
9. COLOCATION REVENUE & PRICING ANALYSIS:
- Colocation Market by Revenue Retail Vs Wholesale Colocation Retail Colocation Pricing and Addons Wholesale Colocation Pricing Key Pricing Trends
10. MARKET DYNAMICS:
- Key Trends in the Market Key Enablers / Drivers in the Market Key Restraints in the Market
11. COMPETITIVE LANDSCAPE:
- Competitive Landscape by Colocation Operators Market Share by Colocation Revenue Market Share by IT Power Capacity Existing Colocation Operators New Operators
12. QUANTITATIVE SUMMARY
A selection of companies mentioned in this report includes, but is not limited to:
- Elea Data Centers Equinix Ascenty HostDime Tecto Data Centers (V.tal) Scala Data Centers Angola Cables Cirion Technologies OData (Aligned Data Centers) NextStream (Nabiax) Takoda Data Centers Quantico Data Center Ada Infrastructure CloudHQ Atlantic Data Centers Aurea Finvest 247 Data Centers DataSpots TERRANOVA (Actis) Parks Data Center RT-One Supernova And Mapa Investimentos
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