Latin America's data center market is projected to grow at 8.01% CAGR through 2031, driven by regional AI strategies, re
Latin America's data center market is experiencing robust expansion, with an expected compound annual growth rate of 8.01% from 2025 to 2031. Sustainable infrastructure and renewable energy represent primary growth catalysts, supported by progressive government policies and corporate decarbonization commitments. Across the region, countries are embracing renewable energy solutions and energy-efficient technologies to foster green hyperscale and colocation data centers.
Amazon Brazil's collaboration with Petrobras in October 2025 exemplifies this shift, leveraging low-carbon fuels in logistics operations with a target of net-zero carbon emissions by 2040. This partnership underscores Latin America's emerging position as a favorable region for environmentally responsible data center development.
Digital transformation and artificial intelligence adoption are accelerating market growth. Brazil's National AI Plan, launched in 2024 with a $4 billion commitment, aims to fuel innovation, enhance AI infrastructure, and promote responsible AI development. With internet penetration exceeding 86.5% by 2025, Brazil leads regional digital advancement. Colombia is similarly advancing digital maturity through its National Public Policy on AI, backed by $116 million in funding to strengthen AI governance, digital talent, and technological infrastructure. Chile is positioning itself as a regional innovation hub through government initiatives focused on digital skills, cybersecurity, and public services.
Infrastructure development is advancing significantly across server systems, cloud services, and storage solutions. Key trends include deployment of AI-focused supercomputers, transition to Software-Defined Storage, and adoption of innovative cooling and power solutions such as liquid cooling and HVO fuel generators.
Brazil is projected to dominate the regional market by 2031 in power capacity. Major cloud providers including Google, AWS, Microsoft, and Apple are driving investment through new digital exchange hubs and submarine cable connections that enhance regional connectivity. The vendor landscape features both established investors and new entrants, with mergers and acquisitions accelerating capacity and global scale expansion.