Latin America Data Center Colocation Market

The data center colocation market in Latin America is projected to grow from USD 5.85 billion in 2025 to USD 12.87 billion by 2030, at a 17.1% CAGR. Growth is supported by the acceleration of cloud migration across large enterprises and the expansion of regional footprints by global hyperscale cloud providers. Enterprise IT modernization is driving the demand for high-density infrastructure that can reliably support AI and HPC workloads. Key markets include Brazil, Mexico, Chile, and Colombia, driven by improving connectivity and growing digital economies. Enterprises are adopting hybrid and multicloud architectures, which is increasing demand for low-latency interconnection between colocation campuses and cloud regions. Strengthening data protection and sovereignty requirements are reinforcing demand for locally compliant colocation hosting solutions across regulated industries.

Across Latin America, leading providers such as Equinix (US), Digital Realty through Ascenty (US), NTT Data (Japan), and KIO (Mexico) continue to expand their regional footprints to support cloud adoption and AI-ready deployments. Operators are prioritizing high-power facility designs and advanced cooling systems to meet rising performance and reliability expectations. Investment decisions are increasingly shaped by grid availability, regulatory alignment, and proximity to major hyperscale cloud regions. These factors are influencing long-term deployment strategies as enterprises demand resilient, compliant, and scalable colocation environments across key Latin American markets.

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In May 2025, NTT Data (Japan) announced plans to launch and list a data center real estate investment trust (REIT) on the Singapore Stock Exchange. This REIT will be seeded with six colocation facilities across the US, Europe, and Singapore, totaling over 41,000 square meters and approximately 80 megawatts. The initiative aims to promote growth in NTT’s data center business and maximize corporate value.

EQUINIX

Equinix is a global real estate investment trust focused on interconnection-led colocation and data center services across major international markets. The company operates more than 260 IBX data centers, spanning 33 countries, and supports enterprise, cloud, and network connectivity requirements. Its strategy emphasizes software-defined interconnection to enable scalable architectures and access to ecosystems. Equinix provides carrier-neutral environments with connectivity to over 3,000 cloud and network providers. The company continues investing in high-density cooling, sustainability programs, and AI-enabled monitoring. Recent xScale developments support high-power deployments and strengthen hybrid multicloud infrastructure capabilities for large enterprise customers.

DIGITAL REALTY

Digital Realty is a global provider of carrier-neutral data centers and interconnection services, operating more than 300 facilities across over 25 countries. Its strategy is built around PlatformDIGITAL, which supports modular, AI-ready data halls, build-to-suit campuses, and renewable energy sourcing. The company’s strengths include scalable, high-density power, strong interconnection frameworks, and a focus on sustainability through the use of green energy and carbon-neutral designs. In July 2024, Digital Realty acquired a colocation data center campus in Slough, UK, for USD 200 million, strengthening its presence in the London market. The acquisition expands access to interconnected services and supports rising regional demand for digital infrastructure. Digital Realty continues to expand geographically through acquisitions while vertically integrating power, cooling, and interconnection layers to deliver reliable, compliant, and energy-efficient colocation services globally.

Market Ranking

In 2024, the Latin America data center colocation market remained highly competitive, with a small group of providers dominating regional capacity. Digital Realty, Equinix, Scala Data Centers, ODATA, and KIO Networks together accounted for an estimated 55–60% of the capacity. Ascenty expanded hyperscale high density campuses in Sao Paulo and Queretaro to support AI workloads and GPU-intensive deployments. Equinix strengthened its regional footprint by establishing high-capacity interconnection zones across Mexico City, Santiago, and Bogota. Scala accelerated regional expansion through large renewable-powered developments in Brazil and Chile, targeting enterprise and cloud demand. ODATA scaled operations in Colombia and Mexico using AI-ready and energy-efficient facility designs. KIO Networks has enhanced its carrier-rich facilities across Mexico and Central America to support scalable, AI-ready colocation infrastructure. Overall, the combined developments underscore a regional shift toward scalable, AI-ready, and sustainable colocation platforms that support the growth of cloud and HPC.

Related Reports:

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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