Latin America Data Center Market

Latin America Data Center Market Overview:

The Latin America data center market size reached USD 15.38 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 32.74 Billion by 2033, exhibiting a growth rate (CAGR) of 8.11% during 2025-2033. Rising cloud adoption, digital transformation, 5G deployment, data localization laws, AI-driven demand, hyperscaler investments, edge computing expansion, renewable energy initiatives, increased internet penetration, government incentives, and growing e-commerce are fueling the Latin America data center market growth.

Latin America Data Center Market Trends:

Major Investments by Global Technology Companies

Global technology leaders are investing heavily in Latin America's data center infrastructure, acknowledging the region's potential for digital growth. These investments are improving the region's digital capabilities and establishing it as a key hub in the global data network. For example, in January 2025, AWS announced a $5 billion investment in Querétaro, Mexico, to build a digital metropolis. This facility aims to provide cloud computing, data storage, and artificial intelligence services to clients in Mexico and Latin America, totaling approximately 440 technology services. The effort is expected to add more than $10 billion to Mexico's GDP over the next 15 years, while also creating approximately 7,000 jobs every year. Moreover, Microsoft announced in September 2024 that it will be investing 14.7 billion reais ($2.7 billion) in Brazil over the next three years to enhance its cloud and AI infrastructure. The investment, the company's largest in Brazil so far, includes training nearly 5 million individuals in artificial intelligence and expanding cloud and AI capacity across São Paulo data centers. These significant investments reflect the growing importance of Latin America in the global digital economy. Apart from boosting the data center capacity of the region, the economic inflow from big tech companies is also encouraging technical innovation, employment, and economic growth.

Rapid Adoption of Artificial Intelligence (AI) Technologies

The rapid adoption of AI technology across various categories of industries is a major growth driver of the data center market in Latin America. The more these AI solutions are embraced by organizations and governments, the stronger will be the need for infrastructure to support secure data processing and storage. Research indicates that AI adoption could considerably add to economic growth within Latin America. For example, Brazil is expected to have an upward adjustment of 4.2 percentage points on the GDP figure by the end of the decade, courtesy of mass AI adoption. There are more and more demands for an advanced data center that can handle extremely high computing loads for supporting AI applications. This generates incentives for local and international companies to invest in high-end facilities in the region. This client expansion generates fresh job openings while retraining the workforce is another emerging issue. Microsoft's investment in empowering more than 5 million workers in Brazil to receive AI training gives them the necessary tools to survive AI-modulated careers. The fast rollout of AI is revolutionizing such fields as banking, healthcare, manufacturing, and retail, across Latin America. Such a shift heralds a far greater need for enhanced data center infrastructure to support AI's computing and storage requirements, thus supporting market growth.

Latin America Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on component, type, enterprise size, end user, and region.

Component Insights:

• Solution
• Services

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Type Insights:

• Colocation
• Hyperscale
• Edge
• Others

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes colocation, hyperscale, edge, and others.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium Enterprises

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprises, and small and medium enterprises.

End User Insights:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes BFSI, IT and telecom, government, energy and utilities, and others.

Regional Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latin America Data Center Market News:

• February 2025: Alibaba Cloud, a subsidiary of the Hangzhou-based Alibaba Group, has established its first data center in Mexico, marking a significant step toward the company's global expansion. The move aims to expand its presence in Latin America while also offering new cloud storage, artificial intelligence, and cybersecurity solutions to organizations of all kinds.
• September 2024: AWS announced intentions to invest 10.1 billion reais ($1.8 billion) in Brazil by 2034 to expand its data center operations. This investment aims to boost AWS's infrastructure and meet the region's growing demand for cloud services.

Latin America Data Center Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America data center market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America data center market on the basis of component?
• What is the breakup of the Latin America data center market on the basis of type?
• What is the breakup of the Latin America data center market on the basis of enterprise size?
• What is the breakup of the Latin America data center market on the basis of end user?
• What are the various stages in the value chain of the Latin America data center market? 
• What are the key driving factors and challenges in the Latin America data center market?
• What is the structure of the Latin America data center market and who are the key players?
• What is the degree of competition in the Latin America data center market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Latin America data center market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America data center market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Latin America data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.