The Brazil colocation market is expected to reach US$2.125 billion in 2030, growing from US$1.283 billion in 2025, at a CAGR of 7.18%.
Brazil is one of the major Latin American nations that holds high potential for investment in ICT infrastructure and initiatives to bolster corporate and startup establishments.
Major cities such as Sao Paulo harbour various BFSI, healthcare, machinery, and IT service providers, and its growing service sector is one of the major GDP contributors. Moreover, major market players, namely Scala Data Centers, Equinix Inc., and HostDime Global Corp, have a well-established presence in the Brazilian market. Such factors are expected to bolster the demand for colocation facilities for managing complex data.
In Brazil, the emphasis on technological adoption and digital transformation of corporations and industries has led to investment in necessary data center facilities to address the growing complexities regarding data storage and analysis, which has positively impacted the Brazilian colocation market. For instance, in October 2022, Scala Data Centers announced the construction of its hyperscale facility, having 7.2MW of customized capacity in Southern Brazil, which would involve an investment of R$250 million.
Furthermore, in September 2022, the Inter-American Development Bank approved investments of US$15 million to the government of Alagoas, Brazil, for the digital transformation of the state, including the development of data strategies. Such investments will boost the establishment of major data centers, such as colocation data centers, for the betterment of broadband and internet coverage in Brazil.
Growing investments in IoT applications are boosting the market demand for colocation in Brazil. Colocation provides speed & security benefits to IoT applications, and it enables the rapid expansion of IoT data networks through the allocation of bandwidth, space, and power. The growing demand for better data transmission modules is prompting companies to invest in IT applications and startups related to such services. For instance, in May 2021, the Brazilian Development Fund collaborated with Qualcomm Ventures to launch a capital fund of US$45 million, which would be invested in IoT startups in Brazil for the expansion of IoT & connectivity spaces.
By enterprise, the Brazil colocation market is analyzed into small, medium, and large, where large enterprises are estimated to grow at a significant rate fueled by the expansion of the operations by major firms operating under major sectors such as healthcare, defense, retail & eCommerce, and BFSI which is anticipated to drive demand for additional storage spaces.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2025 | US$1.283 billion |
| Market Size Value in 2030 | US$2.125 billion |
| Growth Rate | CAGR of 10.62% from 2025 to 2030 |
| Study Period | 2020 to 2030 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
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| Companies Covered |
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| Customization Scope | Free report customization with purchase |
Brazil Colocation Market Segmentation: