1. Market Research
  2. > ICT
  3. > Data Center Market Trends
Brazil Data Center Market - Growth, Trends, and Forecasts (2020 - 2025)

Brazil Data Center Market - Growth, Trends, and Forecasts (2020 - 2025)

  • November 2020
  • 166 pages
  • ID: 5989478
  • Format: PDF
  • Mordor Intelligence LLP
Up to $650 off Until Feb 28th 2021


Table of Contents

Search Inside

The Brazil Data Center Market is expected to grow at a CAGR of 7% over the forecast period from 2020 to 2025. The growing cloud computing (further fuelled due to COVID-19), increasing penetration of different cloud vendors, government regulations for local data security, and increasing investment by domestic players are some of the major factors driving the demand for data centers in the country. There are almost 120 data centers in the country. The need for low latency and high performance, along with the recent work from home culture due to nationwide lockdown, is mainly accelerating the adoption of data centers located near customers and businesses to enable hybrid multi-cloud ecosystems.

- The Brazilian government is also playing a significant role in the development of local data center infrastructure. According to the government, the country’s General Data Protection Act (LGPD), to be implemented from August 2020, is expected to force many enterprises in the country to migrate their cloud access to private networks and updating their encryption services to extend user data protection. Cloud is one of the fastest-growing markets in the country, and the growing investment in the segment is expanding the scope of the studied market. In July 2019, Ascenty opened four data centers in the greater São Paulo area of Brazil. The latest facilities are already fully leased and are located in Jundiai, Paulinia, and Hortolandia. Further, the data centers add 24MW of capacity to Ascenty’s network.
- In 2019, Oracle announced that it would build a third data center in Brazil. Insurance company Porto Seguro, the logistics company VLI and the satellite operator of AT&T, Sky are some of the Oracle’s big clients in Brazil. CenturyLink also recently expanded its capacity in Rio de Janeiro, owing to the growing demand for cloud and data center services. Recently, in August 2020, AMT, Brazil-based hybrid cloud services provider, selected CenturyLink to meet its increasing demand for cloud services as part of business expansion with management systems provider Sankhya, in the country. China-based Huawei is also planning to build cloud computing nodes or availability zones in Brazil, mainly to expand its global footprint in the cloud segment and compete with US competitors like AWS in the region.
- In June 2020, Amazon Web Services announced to invest BRL 1 billion to expand its data center presence in São Paulo and strengthen its cloud infrastructure in South America. São Paulo is the company’s only South American cloud region and has three EC2 availability zones with five edge network locations. In October 2019, the company announced its plans to spend approximately USD 800 million over a decade on a new South American data center in a free trade zone. In May 2020, Brazil-based market vendor, Scala Data Centers, established by US-based Digital Colony from its purchase of UOL Diveo in April 2020, announced the construction of a new data center in São Paulo. In 2019, Digital Colony also acquired Brazilian telecoms infrastructure solutions provider Highline from Pátria Investments.
- Furthermore, the recent COVID-19 has put high pressure on end-user companies to support remote working and are fast-tracking their cloud and digitization journeys. Companies like IBM and Microsoft claim that this will boost the data center market in the country as data center expansion enables organizations and government institutions to uphold data sovereignty by keeping data within their legal basis. As companies in Brazil look to gain greater control of their data in the face of upcoming tighter compliance and protection regulations, data center vendors, like IBM, are targeting customers by providing cloud capabilities and a hybrid multi-cloud environment. Many industry experts believe that the Latin American data center market is expected to witness significant growth in the coming years, in which Brazil will be a substantial driver for this growth.

Key Market Trends
Colocation Type is Expected to Hold Significant Share

- According to the data center map, currently, there are 65 colocation data centers from 21 areas in Brazil. São Paulo and Rio de Janeiro are the major hubs for colocation vendors. Many industry experts expect that the Multi-tenant data center markets will grow 15% in Sao Paulo and 8% in Rio de Janeiro in 2020, owing to the significant expansion of data center in 2019, and indicators point to a continuing upward trend in the coming months. Colocation services are mainly dominating the country’s data center revenue. Most of the local vendors are primarily leveraging on colocation services for growth expansion. Increased merger and acquisition activities have laid the foundation for significant investments in the industry.
- Brazil-based colocation service provider, Ascenty, has two data centers in São Paulo with Tier III certification, ISO 27001, SSAE 16 and ISAE 3402 Type II. In June 2020, the company started its operations for its third data center in São Paulo, with BRL 150 million and 4 MW of energy. By the end of 2020, the company announced to have 16 data centers in operation in Brazil. The company is also planning to expand its presence in Mexico and Chile and plan to have a total of 22 data centers across three countries, further expanding its ability to meet national and multinational clients’ needs. Like CenturyLink, companies reported that Rio de Janeiro is one of the main economic zones in Brazil; hence, they are investing in the region to have a strong customer base.
- Equinix provides colocation in Brazil and is one of the country’s significant carrier-neutral data center providers. The company’s data centers in the country’s top two business markets provide 17,695 square meters of colocation space. The company’s Brazil data centers have Uptime Tier III, ISO 9001:2008, ISO 27001:2013, ISAE3402 / SSAE16 SOC1 Type II, SAP Infrastructure Operations Services and PCI DSS 3.1 certifications to meet quality and security requirements. Their São Paulo data center SP1 is located less than 200 meters from the Bovespa stock exchange and houses numerous networks authorized to connect to it.
- According to the company, they are preferred vendors in Brazil to many thriving, diverse business ecosystems, including SMEs. More than 1,500 companies colocate in Equinix’s data centers in Brazil to connect to business partners and customers in their digital supply chains. Financial services in Brazil are the major end-users of the company’s data center services. According to the company’s survey, 76% of IT decision-makers named Interconnection as a fundamental facilitator in digital transformation. Therefore, by opting for Interconnection, a private and secure route for data traffic between partners, enterprises from various industries can respond efficiently to digitalization challenges.

IT & Telecom Sector Expected to Hold a Significant Share

- IT and Telecom is the most prominent segment for the Brazil Data Center Market. The IT infrastructure demand is the highest for this segment. Colocation providers, who are a substantial adopter of data center racks, are also considered under the study’s scope under the IT & Telecom sector. According to the Brazilian Software Association (ABES), Brazil is Latin America’s largest technology ecosystem. Also, according to the data published by Equinix, the IT investment in Latin America witnessed a 1.3% growth in 2019 and is expected an upswing of 4-5% in 2020. And in 2020, Brazilians’ investment in the IT industry and telecom sector will be around USD 40-50 billion, respectively. This is expected to provide a massive boost to the cloud computing market, and hence in the data center market too.
- The region is undergoing some enormous investment from IT & Telecom providers. For instance, Ascenty launched Its USD 73 million Data Centre Facility In Brazil, and the infrastructure has an available energy capacity of 20 MVA and 12,000 sq m of total area. By the end of 2020, the company aims to complete four more projects, totaling 17 data centers in Latin America (16 in Brazil and Chile). Besides, Digital Colony Management has announced the establishment of Scala Data Centres, a hyperscale data center platform headquartered in Sao Paulo, Brazil. Scala is Digital Colony Management, LLC’s second investment in Brazil and fourth in Latin America.
- The amount of data that is being stored and processed by this segment is huge. The advent of mobile data and subscriptions and their rapid usage have increased data traffic growth and, hence, data centers in Brazil. With the introduction of 5G and Cloud, the demand is expected to grow exponentially in the region. Owing to mergers and acquisitions, the increase in the market share of IT & Telecom companies are also rising sharply in Brazil. For instance, in 2019, Digital Colony acquired Brazilian telecoms infrastructure solutions provider Highline from Pátria Investments. In April 2020, it also funded Vantage Data Centers’ acquisition of Next Generation Data, and in March, it closed its USD 8.2 billion acquisition of Zayo.
- In April 2019, Angola Cables opened a data center in Fortaleza. The government of Ceará state estimates that by the end of 2021, Fortaleza will have 18 submarine fiber optic cables in operation. Therefore, Angola Cables also announced to invested BRL 100 million in the site, which is expected to provide international connectivity through SACS to local corporations, telecoms, and ISPs. Apart from that, the Brazilian government has invested heavily in the country’s internet connectivity to bridge the technology gap between rich and poor, where 83% of the Brazilian population has internet reach. According to Cisco Systems Inc., internet traffic will reach 4.8 Exabytes per month in 2021, up from 2.1 Exabytes per month in 2016.

Competitive Landscape
The Brazil Data Center Market is fragmented, and the competitive rivalry is high. The key players in this market are Arista Networks, Inc., Cisco Systems, Inc., Dell Technologies Inc., IBM Corporation, among others. Through research & development, strategic partnerships, and mergers & acquisitions, they have been able to gain a stronger hold in the market. These players are gradually growing their presence in the market by offering the latest technologies, thereby increasing their revenues in the market.

- April 2020 - Digital Colony Management LLC has announced the establishment of Scala Data Centres, a hyperscale data center platform headquartered in Sao Paulo, Brazil. Valued to be worth USD 300- USD 400 million, the scala Data Centers will be one of the largest in Brazil, and the company will attempt to grow the new facility through acquisitions.
- September 2019 - IBM Corporation announced to build a second data center in Brazil, its third in Latin America, to provide public cloud services. With this, IBM expects to deliver more robust cloud services, from infrastructure to services such as artificial intelligence. In addition to the new datacenter, IBM also announced to spend USD 10 million for the development of a research and engineering center focused on AI in São Paulo in partnership with state research promotion agency Fapesp.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
10% Off


  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

Ireland Data Center Market - Growth, Trends, and Forecasts (2020 - 2025)

  • $ 3250
  • January 2021
  • 225 pages

The Ireland Data Center Market is expected to register a CAGR of 6.7% over the forecast period 2020 to 2025. With the boosted ODM server revenue in the market, owing to increasing hyperscale investments, ...

  • Ireland
  • Data Center
  • Industry analysis
  • Direct Sales
  • Greenhouse Gas Emissions


Reportlinker.com © Copyright 2021. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on