Latin America Data Center Colocation Market worth $12.87 billion by 2030
The report "Latin America Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/GenAI - Forecast to 2030", size is projected to reach USD 12.87 billion by 2030. It is expected to expand from USD 5.85 billion in 2025 at a CAGR of 17.1%.
Browse 90 market data Tables and 25 Figures spread through 160 Pages and in-depth TOC on "Latin America Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/GenAI - Forecast to 2030"
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The market is expected to expand as enterprises across Latin America accelerate cloud adoption for scalable digital infrastructure. Organizations are shifting workloads into colocation facilities to improve resilience and meet regional data sovereignty requirements and compliance expectations. Government-led digital initiatives are driving the demand for locally hosted platforms that support public services and enterprise modernization efforts. Improving subsea connectivity is strengthening cross-border data flows and encouraging international providers to expand regional capacity deployments. Rising energy efficiency priorities are prompting operators to invest in modern facilities with optimized power designs and cooling systems.
By workload type, the general-purpose IT segment is expected to hold the largest market share during the forecast period.
General-purpose IT workloads anchor colocation demand as enterprises migrate core business applications into managed facilities regionally. These environments support ERP platforms that run finance operations and transactional systems across distributed organizations and regionwide enterprises. CRM systems and virtualization stacks are colocated to improve availability while maintaining governance and performance control standards. Hybrid IT architectures increase reliance on providers that integrate effectively with public cloud and private cloud platforms. Predictable power requirements and standardized designs support sustained adoption across diverse Latin American enterprise verticals and sectors.
By end user, the hyperscalers segment is expected to witness the fastest growth rate during the forecast period.
The hyperscalers segment is expected to record the fastest growth as cloud platforms expand across Latin America's digital ecosystems. Colocation enables rapid deployment of high-density racks without extended construction timelines. Rising demand for content delivery and data analytics workloads is increasing power and interconnection requirements. Regional cloud zones benefit from carrier-neutral facilities supporting latency-sensitive applications. Modular expansion strategies, sustainability-aligned designs, and flexible contracts are reinforcing hyperscaler reliance on colocation providers across key Latin American markets.
By country, Mexico is the fastest-growing country during the forecast period.
Mexico is expected to be the fastest-growing market in the Latin America data center colocation market during the forecast period. Growth is supported by accelerating cloud adoption and rising AI workloads across Mexico City, Querétaro, and other emerging metropolitan hubs. Mexico is strengthening its colocation position through expanding hyperscale campuses, improving interconnection density, and strong proximity to US cloud regions. Increasing demand from enterprises and hyperscalers is reinforcing investments in high-density and power-ready facilities. Data localization requirements, network resilience needs, and sustainability initiatives are further driving demand for scalable, efficient, and compliant colocation infrastructure across the nation.
The Key players include Equinix (US), Digital Realty (US), NTT Data Centers (Japan), Scala Data Centers (Brazil), Ascenty (Brazil), ODATA (Brazil), KIO Networks (Mexico), TIVIT (Brazil), and EdgeUno (Colombia), supporting colocation capacity expansion across major Latin American enterprise and cloud demand hubs.
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