Latin America Data Centers Draw Billions as Colocation Capacity Jumps 60% in 2 Years
Updated
Updated · isimarkets.com · Jun 8
Latin America Data Centers Draw Billions as Colocation Capacity Jumps 60% in 2 Years
2 articles · Updated · isimarkets.com · Jun 8
Summary
Colocation capacity in Latin America is projected to expand about 60% over the next two years, extending a surge that lifted inventory to 1,105 MW in 2025 from 384 MW in 2019.
Demand from cloud, AI and data-localization users is absorbing that buildout: vacancy rates stayed near 9% in 2025, and roughly 42% of planned future capacity has already been pre-leased.
Brazil remains the region’s anchor market, with Sao Paulo the main hub and about 75% of the country’s power coming from clean sources, a draw for hyperscalers including Microsoft, Google, AWS and Equinix.
Mexico and Chile are also pulling major commitments, including AWS’s $5 billion plan in Queretaro, CloudHQ’s $4.8 billion platform there, and AWS’s $4 billion cloud infrastructure investment in Chile.
Grand View Research estimates the Latin American data-center market will reach $26 billion in revenue by 2033, growing at an 11% annual rate as investors widen bets to fiber, power and edge infrastructure.
With tax incentives expiring and power grids failing, can Latin America’s data center boom avoid a sudden collapse?
As foreign giants build its digital backbone, can Latin America avoid becoming a mere 'data colony' in the AI era?
Latin America’s Data Center Market to Surpass $28 Billion by 2035: Growth Drivers, Challenges, and Sustainability Trends
Overview
The Latin American data center sector is expanding rapidly, with Brazil, Mexico, Chile, and Colombia leading the demand for services. This growth is driven by the region’s strategic importance for cloud computing, artificial intelligence, and nearshoring, which attracts significant global investment, especially from the United States. Operators are not only focusing on these core markets but are also expanding into secondary and tertiary areas to improve coverage and service quality. In Mexico, new power projects and clearer regulations are easing previous barriers, while Brazil is seeing more edge data centers and renewable-linked infrastructure, reshaping the region’s digital landscape.