Americas Data Center H2 2024 Update

LATAM EMERGING MARKETS

H2 24

AMERICAS SECONDARY MARKETS

SÃO PAULO

CONTACTS Click on each name to send an email.

KEY INDICATORS*

20 / 54 Operators / Data Centers

363MW In Operation

239MW UC

12.1% Colo Vacancy

FERNANDO LERICI Regional Head of Transaction Management fernando.lerici@cushwake.com

São Paulo, Brazil, is buzzing with data center activity and is poised for significant growth in the coming years, making it the focal point of South American markets. Scala Data Centers issued $250 million in green debentures with a six-year maturity to complete its 36MW SGRUTB09 facility at the Tamboré campus, which is nearing completion. This campus is dedicated to a single hyperscaler in the cloud and content sector, with additional capacity in Campinas and Rio de Janeiro. Scala is also constructing a new substation at Tamboré, designed to scale up to 450MW of IT load. In a significant move, Scala Data Centers launched the second phase of its Tamboré campus, a $1.13 billion investment set to deliver 158MW of IT load. The campus currently hosts six live facilities with a combined capacity of 78MW, and two more under construction totaling 56MW. Scala has plans for eight additional facilities, though not all will be included in this phase. Meanwhile, the company is also developing data centers at its Jundiaí campus and other locations in São Paulo state. Tecto Data Centers, a subsidiary of Brazilian telco V.tal, acquired land in Santana de Parnaíba, São Paulo, for a hyperscale data center expected to scale to 200MW. The facility will be powered entirely by renewable energy, with initial power already secured. V.tal's investment plan includes a $1 billion expansion in the region, with additional facilities planned in Fortaleza and Rio Grande do Sul. New entrant 247 Data Centers, backed by Autonomy Investimentos, is targeting hyperscalers and large companies across Latin America. The company has six areas in development, including four in São Paulo and two in Rio, with plans for campuses exceeding 100MW of IT load. Aurea Finvest announced an 800MW data center project in Sumaré, São Paulo, with a $830.3 million investment. The project will span 500,000 sm, with construction expected to begin in 18 months. Aurea Finvest aims to leverage Brazil's strategic advantages, including renewable energy sources and favorable geography, to position the country as a global data center hub.

RAFAEL NOLAZCO Director of Development rafeal.nolazco@sa.cushwake.com

SANTIAGO

KEY INDICATORS*

24 / 44 Operators / Data Centers

198MW In Operation

119MW UC

21.5% Colo Vacancy

Santiago's data center market is set for significant growth, driven by digital transformation, government support and a focus on sustainability. The city's strategic advantages and robust infrastructure offer substantial opportunities for industry professionals looking to tap into Latin America's expanding digital landscape.

Traditionally dominated by local telcos with limited colocation options, Santiago's 2021 data center market boom has persisted. Key players like Ascenty, ODATA, Scala Data Centers and Equinix are present and aim to cater to the growing demand. Many of these same players currently have data center projects under construction or in the planning phases as well, furthering their commitment to the Santiago market.

Chile's energy market, with nearly 50% of its mix from renewable sources like hydroelectric, wind and solar, is deregulated, allowing for sustainability-linked financing. EdgeConneX recently secured $150 million for developments in Chile and Colombia, highlighting strong investor interest.

Chile’s sustainability focus have led Google to halt its planned $200 million data center in Santiago after the company’s con struction permits, first granted in 2020, were reversed. Google will be revising their project to comply with Chile’s heightened environmental requirements, likely including a redesign of i ts cooling system.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.