Intelligent CIO LATAM Issue 60 | Page 30

INTELLIGENT TECHNOLOGY
DATA CENTRES

Latin America data centre construction market forecast to surge on AI and sustainability demand

Cirion Technologies has announced plans to expand its Rio de Janeiro campus after acquiring around 300,000 square feet for the RIO2 project, which is expected to provide approximately 60MW of power capacity.
New market participants include 247 Data Centers, Ada Infrastructure, Atlantic Data Centers, Ava Telecom, CloudHQ, Fermaca Networks, Layer 9 Data Centers, MDC Data Centers, OpenAI, Sur Energy, Surfix Data Center, Terranova and TECfusions.
In February 2026, Microsoft launched two additional data halls in Sao Paulo as part of its US $ 2.7 billion commitment to AI and cloud infrastructure development in Brazil.

ResearchAndMarkets. com forecasts the Latin America data center construction market will grow at a compound annual growth rate of 14.92 % between 2025 and 2031, driven by accelerating cloud adoption, AI infrastructure investment and expanding digital connectivity across the region.

Brazil is expected to remain the largest market by power capacity in 2031, accounting for around 36 % of regional capacity. Continued growth in the Brazilian cloud market is attracting major international operators and hyperscale providers seeking to strengthen regional infrastructure.
In September 2025, Alibaba Cloud announced plans to launch its first Brazilian data centre as part of a wider expansion across eight global locations. The investment is designed to support growing demand for AI-driven cloud services while reinforcing Brazil’ s strategic role in the international cloud ecosystem.
Chile is also emerging as a major market for sustainable digital infrastructure.
The country’ s long-term energy strategy includes achieving carbon neutrality by 2050 and transitioning significant coalfired generation capacity under the Ministry of Energy’ s Decarbonization Plan.
In January 2025, ODATA signed a 100 % renewable power purchase agreement with Atlas Renewable Energy to supply the full energy requirements of its 28MW ST01 facility in Chile. The agreement uses energy generated from Atlas Renewable Energy’ s 1.5GW solar and storage portfolio and supports ODATA’ s ambition to operate all Chilean facilities on renewable energy.
Mexico continues to account for a significant share of regional market growth. Rising adoption of digital platforms, AI, IoT and big data technologies, alongside expanding 5G connectivity, increasing Internet usage and growing mobile and social media adoption, are driving higher data traffic volumes and increasing demand for data centre capacity.
The competitive landscape continues to attract large-scale investment from established operators and new entrants.
Sustainability initiatives are also reshaping infrastructure strategies across the region. In November 2025, Google agreed to purchase 200,000 tons of carbon removal credits from Brazilian reforestation start-up Mombak, supporting restoration projects in the Amazon. The partnership also integrates AI-driven biodiversity monitoring through Google DeepMind, highlighting the increasing connection between environmental sustainability and advanced digital infrastructure investment across Latin America.
Argentina and Chile are also increasing investments in AI-focused infrastructure, including GPU-ready environments, high-density deployments and upgraded cooling systems designed for advanced workloads. In May 2025, the Argentine government promoted the country as a global AI hub by emphasizing low energy costs, abundant land and limited regulatory barriers for technology companies. Regional government policies supporting Digital Transformation, energy adoption and cybersecurity modernization are expected to further accelerate colocation developments through 2031. •
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