The Latin America Data Center Colocation Market Report: Investment, Area, Power Capacity, and Share Analysis. Get Insights By Colocation Type, By Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Cooling Systems, By Cooling Te

Latin America Data Center Colocation Market - Industry Outlook & Forecast 2025-2030

LATIN AMERICA DATA CENTER COLOCATION MARKET SIZE

The Latin America data center colocation market by investment was valued at USD 1.17 billion in 2024 and is expected to reach USD 4.62 billion by 2030, growing at a CAGR of 25.69% during the forecast period. The Latin America data center colocation market is one of the emerging data center markets worldwide, which continues to witness significant growth. The demand for data centers in the LATAM is soaring, driven by the rapid expansion of artificial intelligence (AI), cloud computing, and digital services across various industries. As both public and private sectors accelerate their digital transformation efforts, there's an increasing need for powerful computing capabilities, low-latency performance, and secure data storage.

In 2024, the Latin America data center colocation market witnessed total investments of approximately $1,172 million, with the cumulative investments from 2025 to 2030 projected to reach around $21.1 billion. Brazil alone contributed to around 60% of the overall colocation investments in 2024, with the remaining 40% being contributed by other Latin American countries.

Construction costs for data centers vary significantly by country, with Brazil and Mexico ranking among the expensive markets, averaging around $9 million to $11 million, respectively, per megawatt. These elevated costs are driven by factors such as inflation, interest rates, and stringent government policies. Countries including Colombia and Chile offer comparatively lower construction costs, around $7-$9 million per MW, primarily due to more affordable labor, land, and regulatory environments.

The cost of acquiring land in the Latin American region is projected to keep increasing, particularly in key markets such as Brazil and Mexico. The governments in the Latin American region are actively establishing Special Economic Zones (SEZs), Free Trade Zones (FTZs), Export Processing Zones (EPZs), business parks, and industrial zones, providing attractive benefits for international businesses and encouraging the development of data centers.

Some of the top colocation operators investing in Latin America include Ascenty (Digital Realty), Equinix, Scala Data Centers, ODATA (Aligned Data Centers), Cirion Technologies, HostDime, Elea Data Centers, KIO Networks, EdgeConneX, and other operators.

MARKET OPPORTUNITIES & TRENDS

Growth of Edge Computing Facilities Along with 5G Network

1. The rapid rollout of 5G across Latin America, led by countries including Brazil, Mexico, Argentina, Colombia, and Chile, drives the demand for edge computing facilities that can process data closer to end-users. Edge data centers are essential to support ultra-low latency and real-time applications such as autonomous vehicles, IoT, and AI workloads.
2. Agência Nacional de Telecommunications (ANATEL), the Brazilian telecom regulatory authority, was formed in 1997. Telecom operators, including Claro, Telefonica, and TIM, are the prominent players that were the first to launch 5G in Brazil. As per ANATEL, all Brazilian cities are likely to have 5G coverage by the end of 2029. The country expects the number of 5G subscribers to reach 179 million by 2030, with a penetration rate of 77% of the total population.
3. The Federal Telecommunications Institute (IFT), formed in 2013, oversees and promotes competition in telecommunications in Mexico. Telcel by America Movil is the largest mobile operator in Mexico, accounting for a total of over 10 million 5G subscribers nationwide. According to the Mobility Report by Ericsson, Mexico accounted for 6.6 million subscribers to the 5G network across 125 cities in 2024.
4. Edge data centers are being deployed across Latin America—especially in Brazil, Chile, Colombia, and Mexico, as telecoms expand 5G services to deeper-tier cities and rural regions, pushing demand for localized, low-latency compute.
5. Providers like Scala Data Centers, EdgeConneX, Mexico Telecom Partners, KIO Networks, HostDime, and others offer colocation services and support various edge computing solutions across the LATAM region.
6. Grupo ZFB, EdgeUno, and Tecto Data Centers support edge computing by offering managed hosting, CDN, and cloud services in Colombia.

Adoption of Artificial Intelligence

1. The adoption of AI is on the rise across Latin America with the increased trend of automation and smart operations. The government has launched several artificial strategies. For instance, in May 2025, the government of Argentina promoted Argentina to become a global AI hub, aiming to be the "world’s fourth AI center" by offering minimal regulation, abundant land, and low energy costs to international tech firms
2. Several data center operators have started developing AI-ready data centers in Latin America to accommodate AI workloads being rapidly generated by customers of different industry sectors. For instance, in June 2025, TECfusions announced a 100MW AI-ready data center campus in Puente Alto, Chile, starting with 10MW and scaling to meet high-density AI workloads.
3. Organizations across Latin America are placing a strong emphasis on strategic data management to accelerate AI adoption, acknowledging that data quality and accessibility are critical to the success of AI and machine learning applications. In Rio Grande do Sul, Scala Data Centers is building AI City, which involves an investment of over $50 billion over time toward the development of data centers. Also, Elea Data Centers focuses on developing its AI-based data center campus in Rio de Janeiro.

SEGMENTATION INSIGHTS

1. The electrical infrastructure is witnessing several innovations in the UPS systems, generators, transfer switches & switchgears and other electrical equipment. Some of such innovations include HVO fuel for generator sets, which reduces emissions as a measure to curb emissions.
2. Additionally, several innovative UPS batteries, such as Nickel-Zinc (NiZn) and Sodium-Ion batteries, are gaining traction in the market due to their high power density, safety, sustainability, and other factors.
3. Liquid cooling is becoming a significant trend that major colocation operators are implementing in their data center facilities. It is emerging as a key differentiator for colocation providers as AI and compute-intensive workloads continue to grow. Companies like Equinix, Ascenty (Digital Realty), ODATA (Aligned Data Centers), Scala Data Centers and others are leading the way by offering scalable and energy-efficient solutions that can support the increasing demands of high-performance computing.
4. ODATA (Aligned Data Centers)’s Data Centers feature flexible cooling technology, the Delta cube, that optimizes high-density cooling and space utilization while improving energy efficiency

REGIONAL ANALYSIS

1. Cumulatively, data center operators in Latin America are expected to add over 1,831 MW of core & shell power capacity between 2025 and 2030. Brazil is likely to lead the market by contributing more than 858 MW of this capacity, followed by Mexico with over 431 MW.
2. Brazil at present dominates the data center market in Latin America, followed by Mexico, Chile, Colombia and Argentina. It accounts for around 60% of the overall data center investments, which highlights its stronghold in the sector. The country witnesses billions in investments from several operators.
3. Argentina is emerging as a growing data center market in Latin America due to a combination of untapped demand, its location, and improving digital infrastructure. The country has historically been underserved in terms of data center capacity, creating significant room for expansion as cloud adoption, e-commerce, and digital services accelerate. Compared to saturated markets like Brazil and Chile, Argentina offers competitive advantages, including lower land and power costs, which are critical for large-scale data center operations.

VENDOR LANDSCAPE

1. The Latin America data center colocation market has the presence of prominent operators such as Ascenty (Digital Realty), Cirion Technologies, Elea Data Centers, Equinix, KIO Networks, NextStream (Actis), ODATA (Aligned Data Centers) and Scala Data Centers
2. The market has a presence of several other prominent colocation operators, such as Angola Cables, Ava Telecom, Blue Nap Americas, Claro, DHAmericas, EdgeConneX, EVEO, Gtd, HostDime, Internexa, IPXON Networks, Mexico Telecom Partners (MTP), Millicom (Tigo), OneX Data Center, Oxygen, Quântico Data Center, SONDA, Takoda Data Centers, Telecom Italia Sparkle, Tecto Data Centers (V.tal), Win Empresas and others.
3. New Entrants include 247 Data Centers, Ada Infrastructure, Atlantic Data Centers, CloudHQ, Layer 9 Data Centers, MDC Data Centers, OMNIA Data Centers, Surfix Data Centers, TECfusions and several others.
4. In 2024, Ascenty (Digital Realty) held the largest share of colocation revenue in the U.S. data center market, accounting for approximately 18.7% of total revenue. Equinix followed closely, capturing around 13.9% of the market share, reflecting its strong presence and competitive positioning in the Latin America colocation landscape.