Data Centers in LATAM: The Next Frontier for Infrastructure Investment
Latin America is experiencing unprecedented growth in data center infrastructure, driven by digital transformation, cloud adoption, and increasing internet penetration. This article explores the investment opportunities and key considerations for institutional investors.
Latin America represents one of the fastest-growing data center markets globally, with projected CAGR of 12-15% over the next five years. Countries like Brazil, Mexico, and Chile are leading the charge, driven by favorable regulatory environments and strategic geographic positioning.
Key investment drivers include:
- Growing demand from hyperscale cloud providers (AWS, Microsoft Azure, Google Cloud)
- Increasing adoption of AI and machine learning requiring high-performance computing
- Favorable tax incentives and regulatory frameworks in several LATAM countries
- Strategic location for serving both North and South American markets
- Lower operational costs compared to US and European markets
However, investors must carefully evaluate regulatory compliance, energy infrastructure reliability, and political stability. Projects with pre-committed anchor tenants and long-term power purchase agreements (PPAs) offer the most de-risked opportunities.
Our platform focuses exclusively on data center projects with validated permits, secured power infrastructure, and committed tenant agreements, ensuring institutional-grade risk mitigation.
