South America Artificial Intelligence (AI) Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2024)

South Africa Artificial Intelligence Data Center Market Report is Segmented by Data Center Type (CSP Data Centers, Colocation Data Centers, Others (Enterprise and Edge)), by Component (Hardware, Software Technology, Services - (Managed Services, Professional Services, Etc. ). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).

South America Artificial Intelligence (AI) Data Center Market Size and Share

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South America Artificial Intelligence (AI) Data Center Market Analysis by Mordor Intelligence

The South America Artificial Intelligence Data Center Market size is estimated at USD 1.06 billion in 2025, and is expected to reach USD 2.37 billion by 2030, at a CAGR of 17.33% during the forecast period (2025-2030).

South America is witnessing the development of AI data centers to support the region's growing demand for computational resources. These facilities are being established to enhance AI capabilities and provide infrastructure for various applications. The focus is on deploying advanced technologies to meet the increasing requirements of AI-driven processes across industries.

The Brazilian government is preparing to launch a new data center framework to attract more investment to Brazil and expand the country’s digital infrastructure. The National Data Center Policy, scheduled to be launched in May 2025, should provide tax incentives, legal security, and specific rules for the sector. As a result of these initiatives, Brazil now serves as an entry point for major clouds and digital technologies coming into Latin America.

Brazilian investment firm Patria Investimentos (PAX.O) recently announced the launch of Omnia, a hyperscale data center platform. The platform plans to invest approximately USD1 billion in its first project over the next 18 to 24 months, driven by the accelerating adoption of cloud computing and artificial intelligence in Latin America. The region, particularly Brazil, is becoming a hub for data center investors due to its abundant renewable energy resources and relatively unconstrained growth opportunities, contrasting with the more saturated markets in the U.S. and Europe.

Overall, the rapid advancements in AI data center infrastructure across South America, coupled with supportive government policies and significant investments, are positioning the region as a critical player in the global digital economy. These developments are expected to drive innovation, enhance regional AI capabilities, and attract further investments in the coming years.

Competitive Landscape

The South America Artificial Intelligence industry remains fragmented, yet consolidation signals began appearing in 2024 as leading cloud service providers acquired niche model-ops startups. Local champions differentiate by embedding domain expertise in algorithms rather than competing purely on generic tooling. Vendors that focus on compliance modules, especially for the financial sector, win longer-term annuity contracts because banks face non-negotiable audit requirements. Consequently, product roadmaps increasingly prioritize automated model documentation and bias detection features.

Strategic alliances between multinational cloud providers and telcos accelerate reach into underserved mid-market accounts. Telcos contribute distribution muscle through existing connectivity contracts, while cloud partners supply technology stacks. The combination reduces customer acquisition costs and standardizes support, indirectly promoting subscription renewals. Over the medium term, joint go-to-market programs may act as a soft barrier to entry for smaller standalone startups without channel partners.

South America Artificial Intelligence (AI) Data Center Industry Leaders

  1. NVIDIA Corporation

  2. Advanced Micro Devices Inc.

  3. ABB Ltd.

  4. Schneider Electric SE

  5. Cisco Systems Inc.

  6. *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments

  • May 2025: A new artificial intelligence (AI) data center campus has been announced in the Brazilian city of Rio de Janeiro. The “Rio AI City” project, revealed at the Web Summit Rio on April 27, will be located in the city’s Olympic Park. It has an initial planned capacity of 1.8GW, expected to come online by 2027, with a view to expanding to 3GW by 2032. When completed, the project will reportedly be the largest data center campus in Latin America and one of the largest worldwide.
  • May 2025: Argentina is planning to establish AI data centers powered by nuclear energy, aiming to position itself as a global hub for artificial intelligence. At the core of this initiative is the development of small modular reactors (SMRs), which are transportable nuclear reactors capable of meeting the high energy demands of AI data centers. If successful, Argentina could become the first country to commercially deploy SMRs, following China and Russia. This ambitious project, led by President Javier Milei, seeks to attract investments from major tech firms and leverage the country’s nuclear expertise to support the growing AI industry.

Table of Contents for South America Artificial Intelligence (AI) Data Center Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions And Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET OVERVIEW

  • 4.1 Emergence of AI in Data Center
  • 4.2 Challenges Faced By traditional Data Centers (Supply and Demand Dynamics)
  • 4.3 Where can AI provide immediate results?

5. PESTLE Analysis

6. MARKET DYNAMICS

  • 6.1 Market Drivers
    • 6.1.1 Rapid cloud and AI workload adoption among Brazilian enterprises is catalysing multitenant build-to-suit contracts, locking in five-year capacity reservations.
    • 6.1.2 Government digital-transformation programs in Chile and Colombia funnel public-sector workloads into regional AI hubs, adding baseline demand.
    • 6.1.3 Renewable-energy availability in the Southern Cone lowers PUE and enhances site resilience against carbon pricing risk.
    • 6.1.4 Fintech unicorn expansion demands in-region inference latency, creating high-margin edge-node requirements.
    • 6.1.5 Tax incentives in Colombian Free-Trade Zones bolster cashflow models for green data centers, accelerating build schedules.
  • 6.2 Market Challenges
    • 6.2.1 Grid instability and high power tariffs in Argentina complicate forecasted opex, pressuring project-finance covenants.
    • 6.2.2 Skilled-workforce shortages for AI-focused data-center operations slow ramp-up timelines, forcing operators to invest in internal training academies.

7. Impact on Sustainability and Carbon Neutral Energy Goals

  • 7.1 Sustainable Power Source and Management
    • 7.1.1 Renewable Vs Non-Renewable Sources of Power (Green Data Centers and AI Innovations)
    • 7.1.2 Carbon Footprint Reduction (Use of Heat Pumps, District Cooling & Heating, and Others)
  • 7.2 Sustainable Cooling Solutions and Management
    • 7.2.1 Efficient Cooling Solutions for AI Optimized Data Centers
    • 7.2.2 PUE Ratio, WUE Ratio - Analysis

8. Market Segmentation and Competitive Landscape

  • 8.1 By Data Center Type
    • 8.1.1 CSP Data Centers
    • 8.1.2 Colocation Data Centers
    • 8.1.3 Others (Enterprise and Edge)
  • 8.2 By Component
    • 8.2.1 Hardware
    • 8.2.1.1 Power
    • 8.2.1.2 Cooling
    • 8.2.1.3 IT Equipments
    • 8.2.1.4 Others
    • 8.2.2 Software Technology
    • 8.2.2.1 Machine Learning
    • 8.2.2.2 Deep Learning
    • 8.2.2.3 Natural Language Processing
    • 8.2.2.4 Computer Vision
    • 8.2.3 Services - (Managed Services, Proffesional Services, etc)
  • 8.3 By Country
    • 8.3.1 Brazil
    • 8.3.2 Argentina
    • 8.3.3 Chile
    • 8.3.4 Colombia
    • 8.3.5 Peru
    • 8.3.6 Rest of South America

9. Competitive Landscape

  • 9.1 Company Profiles
    • 9.1.1 NVIDIA Corporation
    • 9.1.2 Advanced Micro Devices Inc.
    • 9.1.3 Arm Holdings plc
    • 9.1.4 Huawei Technologies Co. Ltd.
    • 9.1.5 Cisco Systems Inc.
    • 9.1.6 Sunbird Software Inc.
    • 9.1.7 Nlyte Software Ltd.
    • 9.1.8 Schneider Electric SE
    • 9.1.9 ABB Ltd.
    • 9.1.10 Vertiv Group Corp.
    • 9.1.11 Alfa Laval AB
    • 9.1.12 Green Revolution Cooling Inc.
    • 9.1.13 Elea
  • *List Not Exhaustive

10. Future Outlook and Emerging Trends

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South America Artificial Intelligence (AI) Data Center Market Report Scope

The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.

Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.

By Data Center Type CSP Data Centers
Colocation Data Centers
Others (Enterprise and Edge)
By Component Hardware Power
Cooling
IT Equipments
Others
Software Technology Machine Learning
Deep Learning
Natural Language Processing
Computer Vision
Services - (Managed Services, Proffesional Services, etc)
By Country Brazil
Argentina
Chile
Colombia
Peru
Rest of South America
By Data Center Type
CSP Data Centers
Colocation Data Centers
Others (Enterprise and Edge)
By Component
Hardware Power
Cooling
IT Equipments
Others
Software Technology Machine Learning
Deep Learning
Natural Language Processing
Computer Vision
Services - (Managed Services, Proffesional Services, etc)
By Country
Brazil
Argentina
Chile
Colombia
Peru
Rest of South America
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Key Questions Answered in the Report

How big is the South America Artificial Intelligence Data Center Market?

The South America Artificial Intelligence Data Center Market size is expected to reach USD 1.06 billion in 2025 and grow at a CAGR of 17.33% to reach USD 2.37 billion by 2030.

What is the current South America Artificial Intelligence Data Center Market size?

In 2025, the South America Artificial Intelligence Data Center Market size is expected to reach USD 1.06 billion.

Who are the key players in South America Artificial Intelligence Data Center Market?

NVIDIA Corporation, Advanced Micro Devices Inc., ABB Ltd., Schneider Electric SE and Cisco Systems Inc. are the major companies operating in the South America Artificial Intelligence Data Center Market.

Which is the fastest growing region in South America Artificial Intelligence Data Center Market?

South America is estimated to grow at the highest CAGR over the forecast period (2025-2024).

Which region has the biggest share in South America Artificial Intelligence Data Center Market?

In 2025, the South America accounts for the largest market share in South America Artificial Intelligence Data Center Market.

What years does this South America Artificial Intelligence Data Center Market cover, and what was the market size in 2024?

In 2024, the South America Artificial Intelligence Data Center Market size was estimated at USD 0.88 billion. The report covers the South America Artificial Intelligence Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Artificial Intelligence Data Center Market size for years: .

South America Artificial Intelligence (AI) Data Center Industry Report

Statistics for the 2025 South America Artificial Intelligence (AI) Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Artificial Intelligence (AI) Data Center analysis includes a market forecast outlook for 2025 to 2024 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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