Connectivity advances and redefines regional hubs
The region is undergoing a transformation in its connectivity map. Currently, 95% of intercontinental traffic flows through submarine cables. Between 2024 and 2026, several new routes will expand this network.
Chile is consolidating its position as a transpacific hub;
- Mexico is strengthening its strategic position in connecting with the US and the Caribbean;
- Colombia is expanding the connection between its coastal points and Bogotá;
- Brazil remains at the center of major international routes, with initiatives such as Firmina (a long-distance submarine cable that will connect the US to Brazil with high capacity and low latency) and EllaLink (a system that directly connects South America and Europe).
This set of infrastructures, therefore, expands international data traffic and supports the expansion of data centers in the region.
Renewable energy and regulatory environment boost Brazil
The energy matrix is a competitive advantage. Markets with a high share of renewable sources, such as Brazil, Chile, and Colombia, tend to attract larger projects that require stability, predictability, and efficiency.
In Brazil, 75% of the matrix comes from clean sources, 62% of which is hydroelectric, further reinforcing the country's attractiveness to hyperscalers—which are large global cloud service providers that require massive-scale operations—as well as to colocation operators, responsible for offering shared infrastructure to multiple customers.
In addition to energy availability, programs such as Redata (Special Taxation Regime for Data Centers) and PNDC (National Data Center Development Program) make the regulatory environment more competitive, as they offer tax incentives and guidelines that encourage the implementation of new projects.
To illustrate, the country is the largest data center market in Latin America, with 23 operators and more than 1.6 GW of potential capacity. Currently, installed capacity already exceeds 1 GW. New developments continue to be built in the main connectivity hubs.
Competitive landscape intensifies with new entrants
The Brazilian market is heavily concentrated among large players, reflecting the maturity and high level of investment required for new projects. The presence of global operators raises technical and operational standards, while new entrants keep the competitive environment active, thereby driving innovation, efficiency, and acceleration in the pace of deliveries.
Projections point to 60% growth by 2030
The fundamentals of the sector remain solid, even in the face of challenging macroeconomic scenarios. The projected pipeline through 2030 forecasts an increase of close to 60% in delivered capacity, with a focus on more technological, efficient, and resilient developments.
For investors, the challenge lies in balancing the speed of the technology market with the pace of real estate development, ensuring assertiveness in capital allocation, operational efficiency, and location strategy. In a market where maturity is advancing rapidly, competition is likely to intensify, and leadership will depend on who can combine scale, innovation, and execution.
Cushman & Wakefield's role in the data center market
Cushman & Wakefield is at the center of the evolution of digital infrastructure. The company has consolidated expertise in the segment and operates in all phases of the asset life cycle. The Global Data Center Advisory Group has over 20 years of experience and offers comprehensive services. This includes site selection, due diligence, valuation, leasing, facilities management, and construction or retrofit project management.
With a global presence and local operations, Cushman & Wakefield supports occupants, operators, and investors. This ensures that each real estate strategy keeps pace with digital transformation and the expansion of data centers in the region.
