Latin America's data center colocation market is projected to grow at a 15.20% compound annual growth rate through 2031,
The Latin America data center colocation market is projected to grow at a CAGR of 15.20% from 2025 to 2031. This growth is driven by digital transformations and renewable energy initiatives across the region.
Brazil is undergoing significant digital transformation, with internet penetration exceeding 86.5% by 2025. Colombia is embracing AI technology, with Claro committing over 200 million dollars to fiber optic expansion. Chile's tech ecosystem benefits from supportive government policies that enhance digital skills and cybersecurity frameworks. Mexico is experiencing growth in its internet user base and high social media engagement, while Argentina is positioning itself to become a global AI hub with government support and favorable conditions for technology firms.
Data center operators throughout the region are increasingly committing to sustainability measures. Argentina plans to source 20 percent of its electricity from renewables by 2025, Brazil prioritizes energy-efficient infrastructure, and Mexico is working toward net-zero emissions by 2050. Chile targets carbon neutrality by 2050, while Colombia focuses on renewable energy expansion with a goal of reaching 70 percent by 2030.
Innovations in electrical infrastructure include UPS systems, generators, and advanced cooling technologies designed to handle new AI workloads. Examples include data centers like KIO's MEX 6, which uses redundant chillers and advanced cooling solutions.
Brazil leads the regional market due to digital transformation policies and major investments. Mexico's market growth is fueled by digital platform adoption and emerging technologies. Chile hosts numerous data centers, while Colombia supports industry growth through ACOLDC. Regional power costs influence where data center operators choose to locate.
Prominent investors in the region include Ascenty, Cirion Technologies, Elea Data Centers, and Equinix. New entrants such as 247 Data Centers and Ada Infrastructure are establishing themselves in the market. Notable recent developments include I Squared Capital's acquisition of Elea Data Centers and ODATA's launch of a new facility in Mexico.