Latin America Sustainable Data Center Market Landscape 2026-2031

The Latin America sustainable data center market size by investment is expected to grow at a CAGR of 21.73% from 2025 to 2031.

Green financing is becoming an important source of capital for sustainable data center expansion, enabling operators to fund renewable power, energy-efficient infrastructure and other sustainability initiatives. For example, ODATA secured $1.02 billion in green financing in September 2025, while Scala Data Centers secured $328 million in international financing for three hyperscale facilities and a power substation in Chile under its Green Bond Framework.

Investment is also expanding into lower-carbon backup power and emerging energy technologies as operators seek reliable power for growing AI and hyperscale workloads. In February 2026, Cummins announced the deployment of HVO fuel across 20 generator sets at a 60-MW hyperscale data center in Brazil, while hydrogen fuel cells, advanced energy storage, geothermal systems and other low-carbon technologies remain potential opportunities for future data center development.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET INSIGHTS BY POWER CAPACITY

The Latin America sustainable data center market by power capacity is expected to reach 409.5MW by 2031. Latin America's abundant renewable energy resources are creating favourable conditions for large-scale sustainable data center development, with hydropower remaining a major source of electricity while solar and wind capacity continues to expand. Direct access to renewable generation, on-site projects, and dedicated power infrastructure is enabling operators to support growing AI and hyperscale workloads with lower-carbon electricity.

Long-term renewable PPAs are becoming an important component of data center energy strategies across the region, providing operators with greater power-price visibility while supporting renewable energy procurement and decarbonization goals. For example, Equinix entered a long-term renewable energy partnership with Auren Energia in Brazil, while ODATA secured 100% renewable energy for its Chilean operations through an agreement with Atlas Renewable Energy.

Recent Developments & News in Latin America Sustainable Data Center Market

• KIO Data Centers is investing $70 million in the development of MEX8, a new data center in Mexico City, to expand its digital infrastructure capacity and address growing demand from cloud, enterprise, and digital services. The project will bring KIO Data Center's global portfolio up to 4MW and will incorporate 79% renewable energy.
• In September 2025, Ascenty announced the launch of its third data center facility, SCL03, in Santiago with an investment of around $114 million. The 16-MW facility is powered by 100% renewable energy and features a closed-loop cooling system, supporting the company's expansion strategy to grow its Chile footprint to 150MW.
• In 2026, ODATA announced a $1.3 billion expansion in Bogota and Cundinamarca. The investment includes the development of two sustainable data centers - BG02 and BG03 campuses, which together are planned to provide up to 144MW of IT capacity, strengthening Colombia's position as an emerging data center hub in Latin America.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET KEY TRENDS

Rising Renewable Energy Integration

Renewable energy integration has become a key priority for data center operators in the Latin America region as they leverage clean power procurement, on-site renewable generation, and innovative energy partnerships to enhance sustainability, improve energy resilience, and address rising electricity demand.

Long-term renewable energy agreements are enabling operators to secure large-scale, reliable clean power for expanding data center capacity. For example, Casa dos Ventos and OMNIA Data Centers signed a $2 billion, 20-year agreement in 2026 to supply up to 300 MW of renewable power to a new hyperscale facility in Brazil.

Large-scale renewable-powered data center projects are expanding across the region, demonstrating the growing integration of clean power directly into digital infrastructure. HIVE Digital's Yguazu campus in Paraguay is expanding to 400 MW using hydropower from the Itaipu Dam, while ODATA, Equinix, and other operators are increasing their use of renewable electricity across Brazil and Chile through PPAs and renewable energy partnerships.

Sustainable Innovations in Data Center Power Technology

Alternative power technologies are gaining attention across Latin America as AI and hyperscale data centers increase demand for reliable power amid grid constraints and decarbonization goals. HVO, natural gas, BESS, and microgrids are seeing early adoption, while fuel cells and nuclear technologies remain at an earlier stage.

HVO and natural-gas generation are emerging as practical alternatives to diesel backup power. Cummins deployed HVO across 20 X 3 MW generators at a 60 MW hyperscale data center in Brazil, while natural-gas generation has been used in Mexico to address grid-connection delays.

Nuclear and other emerging technologies could provide longer-term opportunities for resilient, low-carbon power. In July 2026, Terra Innovatum signed an LOI covering up to 8 MWe of behind-the-meter SOLO microreactors for data center infrastructure in Argentina and Brazil, highlighting growing interest in alternative power for critical digital infrastructure.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET DRIVERS

Abundant Renewable Energy Resources

Latin America's renewable-heavy electricity mix provides a strong foundation for sustainable data center growth. In June 2025, renewable sources accounted for 71% of regional electricity generation, with hydropower alone contributing 51.3%, while wind and solar continue to expand. This availability of low-carbon electricity is supporting the growing power requirements of hyperscale and AI data centers.

Data center operators are increasingly increasing their direct use of renewable electricity through PPAs and onsite generation. For example, Ascenty generated 46,677 kWh of renewable electricity through an onsite solar plant in Sao Paulo, while Google's Latin American operations consumed approximately 526.2 GWh of renewable electricity in 2025, representing around 82% of its total electricity consumption.

Corporate Net-Zero and ESG Commitments

Corporate net-zero and ESG commitments are increasingly shaping data center development across Latin America, with operators and hyperscalers focusing on renewable electricity, energy efficiency, water stewardship, and emissions reduction as AI-driven capacity expands. Equinix, for example, reported 96% renewable energy coverage in 2025 and has science-based targets supporting its global decarbonization strategy.

Major technology companies are linking data center expansion with long-term carbon-reduction targets. Google aims for net-zero emissions across its operations and value chain by 2030 and 24/7 carbon-free energy on every grid where it operates, while Oracle targets net-zero emissions by 2050 and 100% carbon-free electricity for its Custom AI Data Centers by 2035.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET RESTRAINTS

Rising Carbon Emissions from Data Centers

Rapid AI and hyperscale data center expansion is increasing electricity consumption and associated carbon emissions, creating a growing sustainability challenge for Latin America. Globally, data centers generate around 180 Mt of indirect CO2 emissions from electricity use, while electricity demand is projected to reach around 945 TWh by 2030.

Operators are increasingly combining renewable energy, efficiency measures, and carbon-removal initiatives to manage emissions from expanding data center operations. For example, Cirion Technologies increased renewable energy use from 53% in 2022 to 80% in 2024, while Google and Microsoft are supporting carbon-removal and reforestation projects in Brazil to address residual emissions.

Water Scarcity impacting Data Center Operations

Water availability is becoming a key constraint for data center expansion in Latin America, particularly in drought-prone regions such as Santiago and Queretaro. High water consumption from cooling systems is increasing scrutiny of new projects and influencing cooling-system design, with Google's Santiago project moving toward air cooling following environmental concerns.

Operators are increasingly adopting water-efficient and water-free cooling solutions to reduce resource pressure. AWS's Sao Paulo facilities reduced WUE from 0.23 L/kWh in 2024 to 0.09 L/kWh in 2025, while Tecto Data Centers targets zero WUE during continuous operations, demonstrating the shift toward more water-efficient cooling infrastructure.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET SEGMENTATION INSIGHTS

INSIGHTS BY INFRASTRUCTURE

Based on the infrastructure, general construction accounted for the largest Latin America sustainable data center market share of around 38% in 2025. General construction is a key component of Latin America's sustainable data center market, supported by continued investment in new hyperscale and colocation facilities, reflecting spending on site development, core-and-shell construction, and facility expansion. The continued growth of AI, cloud, and digital infrastructure is expected to sustain demand for resilient and energy-efficient data center facilities across the region.

Building development is carried out by major construction contractors in coordination with design and infrastructure providers, as well as data center operators. The primary aim of facility design is to create a data center that excels in durability, scalability, and operational flexibility while ensuring efficiency and resilience.

The design cost of a data center normally accounts for 4%-5% of the overall expenditure, depending on the facility size, capacity, and labor costs.

INSIGHTS BY MECHANICAL INFRASTRUCTURE

The mechanical infrastructure segment is expected to witness the highest growth during the forecast period. Data center operators across Latin America are increasingly deploying liquid cooling, free cooling, and AI-driven cooling optimization technologies to reduce energy consumption, improve cooling efficiency for high-density AI workloads, and lower overall PUE.

HostDime's Tier IV data center in Guadalajara, Mexico, incorporates energy-efficient and resilient infrastructure, including hot- and cold-aisle containment, Trane Arctic chillers, a redundant 3N power configuration, and software-defined BMS and DCIM systems to improve cooling efficiency, power reliability, and facility management.

Data centers that use air-side economization can use air ducts and are mostly developed as facilities with zero water requirements for cooling. Some data centers are designed with cooling solutions using lake or seawater, making regular maintenance of the piping infrastructure necessary.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET GEOGRAPHICAL ANALYSIS

Brazil

Brazil leads sustainable data center investment in Latin America in 2025, the highest among countries in the region. Its strong renewable-energy base, expanding hyperscale and AI infrastructure, and established connectivity ecosystem are supporting continued investment in sustainable data center development. The country's digital transformation initiatives, growing IoT and big data adoption, and strong demand for digital services are attracting significant investment in data center infrastructure.

Mexico

Mexico held a 16% share of the Latin American sustainable data center market in 2025, supported by growing hyperscale and colocation development, expanding cloud and AI workloads, and its strategic connectivity with the U.S. The Queretaro region remains a key data center hub, while increasing focus on renewable energy, efficient cooling, and resilient power infrastructure is supporting the country's transition toward more sustainable data center development.

Chile

Chile is increasingly establishing itself as a leading destination for data center investments in South America, supported by its strategic geographical position, strong digital infrastructure, and supportive government policies. The country has evolved into a key hub for global data center operators, aiming to extend their regional footprint, with an emphasis on improving connectivity and scalability to keep pace with rising demand.

Colombia

Colombia is emerging as a strategic data center colocation market in Latin America, with a projected CAGR of 53.94%. Bogota remains the country's primary data center hub, supported by strong fiber connectivity, established power infrastructure, and concentrated enterprise and government demand, while its growing digital ecosystem continues to attract colocation investment.

LATIN AMERICA SUSTAINABLE DATA CENTER MARKET VENDOR LANDSCAPE

The Latin America sustainable data center market is characterized by the presence of major hyperscale-focused data center developers, colocation operators, and digital infrastructure providers, including Ascenty, Cirion Technologies, Elea Data Centers, Equinix, KIO Networks, NextStream, ODATA and Scala Data Centers, alongside other regional and international operators. These companies are expanding through hyperscale campuses, AI-ready facilities, renewable energy procurement, energy- and water-efficient infrastructure, and investments in power- and connectivity-rich markets across Brazil, Mexico, Chile, Colombia, and other Latin American countries.

The Latin America sustainable data center market is increasingly supported by renewable energy developers and power providers, including Atlas Renewable Energy, Auren Energia, Casa dos Ventos, Colbun, Celsia, Serena Energia and AES, alongside other regional renewable energy companies. These providers are supporting data center expansion through long-term power purchase agreements (PPAs), self-generation partnerships, wind and solar projects, and dedicated renewable power supply in Latin American markets.

Key Data Center Investors

• Ada Infrastructure
• Amazon Web Services
• Ascenty
• Cirion Technologies
• Claro
• CloudHQ
• DHAmericas
• EdgeConneX
• Elea Data Centers
• Equinix
• Google
• Gtd
• HIVE Digital Technologies
• HostDime
• Huawei Technologies
• KIO Data Centers
• Layer 9 Data Centers
• Mexico Telecom Partners
• Microsoft
• NextStream
• ODATA (Aligned Data Centers)
• OMNIA Data Centers
• Oracle
• Scala Data Centers
• SkyOnline
• Takoda Data Centers
• Tecto Data Centers
• TECfusions
• Telecom Argentina
• Telecom Italia Sparkle
• Terranova

Renewable Energy Providers

• ACCIONA Energia
• AES Andes
• Aguila Energy
• Atlas Renewable Energy
• Auren Energia
• AXIA Energia
• Casa dos Ventos
• Celsia
• Central Puerto S.A.
• Colbun S.A.
• EDP Renewables
• Elera Renovaveis
• Enel Green Power
• ENGIE Brasil
• GreenYellow
• MSU Green Energy
• Petrobras
• Powertrust
• RZK Energia
• Serena
• Shell
• Solaer Renewable Energies
• Sollar Machine
• Statkraft
• Sur Energy
• TotalEnergies
• Voltalia
• YPF Luz

Segmentation by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by Geography

Latin America

• Brazil
• Colombia
• Mexico
• Chile
• Rest of Latin America

KEY QUESTIONS ANSWERED:

1. How big is the Latin America Sustainable Data Center Market?

2. What is the growth rate of the Latin America Sustainable Data Center Market?

3. What is the estimated market size in terms of power capacity in Latin America's sustainable data center market by 2031?

4. What are the key trends in the Latin America sustainable data center market?