Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)
Summary
Latin America has about 2.5 GW of data center capacity and a pipeline of 540 projects worth US$197 billion. Another 20.1 GW might be looming.A Growing Market...
Latin America is becoming more attractive for the data center sector, with roughly 2.5 gigawatts (GW) of existing capacity and a projected annual growth of as much as 20%. The region is attractive due to its vast renewable power-generation capacity and nearshoring to key markets, but several challenges lie ahead.The biggest hubs in the region are Sao Paulo state in Brazil, with a capacity of more than 500 megawatts (MW), followed by Queretaro in Mexico with more than 300 MW of operational and under-construction capacity, and Santiago de Chile in Chile with roughly 280 MW of operational capacity.
While Brazil and Chile are attractive to the data center industry for their renewable power generation and rapid expansions, Mexico's nearshoring to markets in the U.S. has sparked interest among some of the biggest investors in the sector.
Industrial Info Resources is tracking 540 data center projects across Latin America, representing investments of US$197 billion. Together, these projects account for 20.1 GW of potential data center capacity in the region, of which almost 1 GW is under construction.
Industrial Info Resources offers more information on these projects in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a list of project reports.
This growth will open the door to new data center hubs such as Bogota and Cundinamarca in Colombia, which have a pipeline of 360 MW in data center capacity across 31 projects, representing investments of US$3 billion.
Similarly, Brazil's Ceara state is among the biggest winners in data center expansion across the region, with 1.3 GW of potential capacity across 32 projects and investments of US$12.23 billion.
"In the Latin American data center market, we can identify four key typologies, depending on the region," said Ruth Vargas, Regional Research Manager for the Industrial Manufacturing Industry for Industrial Info Resources. "Hyperscale developments lead in Mexico and Brazil, with rapid progress in Colombia and Paraguay. On the other hand, the co-location type scheme predominates in Chile and supports telecommunications in Colombia, Paraguay and Argentina, while the enterprise model is relevant in Colombia, Argentina and Paraguay, and infrastructure for crypto mining and intensive processing historically predominates in Paraguay."
For a deep-dive into data centers in Latin America, watch the Industrial Info Resources podcast episode - Latin America Data Center Outlook 2026: Power, Hubs & Growth.
...But Speed Bumps are Ahead
Despite the growing interest in expanding data center capacity in Latin America, several key challenges arise across the region. First, the fast expansion of data center capacity is generating delays of up to 18 months in the manufacturing of generators, chillers, transformers, as well as a shortage of graphic processing units.However, one of the key challenges for the data center market is its power consumption. According to Leonardo Aguirre, Industrial Info Resources' Regional Research Manager for the power-generation sector in Latin America, it takes between one and two years to develop a data center, while it takes four to ten years to develop substations and transmission lines.
Data center capacity available in Latin America has an electricity demand of 23 terawatt-hours per year. However, estimates by the Latin American and Caribbean Energy Organization (OLACDE) suggest that over the next decade, that demand will increase more than fivefold to 120 terawatt-hours per year, equivalent to powering 40 million homes.
Despite these requirements, industry players are adapting their data center projects with behind-the-meter power generation capacity, as well as locking in long-term power purchasing agreements to secure the power demand for their projects.
Check out more data center analysis and insights on Latin America Data Center Outlook 2026: Power, Hubs & Growth.
Key Takeaways
- Latin America has a data center capacity of about 2.5 GW.
- Industrial Info Resources is tracking almost 540 data center projects in the region.
- Data center electricity consumption could reach 120 terawatt-hours per year in the next decade.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).
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