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datacenterHawkAuthor: datacenterHawk
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Equinix Supporting LATAM's Cloud Strategies
Wednesday, 11 February, 2026
📊 Get more market insights HERE🤝 Speak with someone from our global data team HERE 🖥️ Book a platform demo HERELatin America accounts for just 2.2% of the world’s data center capacity but represents one of the fastest-growing opportunities in digital infrastructure. While the U.S. and Asia continue their rapid expansion, LATAM is on the brink of transformation, driven by regulatory changes, renewable energy, and rising interconnection demand.At PTC in Hawaii, Steve Sasse, VP for Latin America at datacenterHawk, spoke with Eduardo Carvalho, Managing Director for Latin America at Equinix. Carvalho, a seasoned executive in the region, shared insights on market evolution, Brazil’s regulatory shifts, Mexico’s power challenges, and the hybrid future of retail and hyperscale deployments.Brazil remains the heart of South America’s digital infrastructure, but high import taxes have long delayed hardware deployments. A critical legislative change could soon slash these tariffs from 54% to 2%, unlocking AI adoption and hyperscale growth. While hyperscalers wait for this decision before committing to large-scale projects, Equinix remains confident in its ecosystem-driven model, serving 1,000+ customers with interconnection products regardless of the legislation’s outcome.The conversation also explored Mexico, focusing on Querétaro and Monterrey. Querétaro, an established hub, faces power transmission issues similar to other global hubs. Carvalho noted Equinix is exploring power alternatives and anticipates solutions soon.Meanwhile, Monterrey emerges as a strong alternative, offering:Proximity to the U.S. border: Enabling low-latency links to Dallas.Lower power costs: Around $0.06 per kWh versus $0.11–$0.13 in Querétaro.Access to natural gas infrastructure: Sharing resources with Western Texas.Equinix aims to resolve Querétaro’s challenges but recognizes Monterrey’s undeniable growth potential.A key theme was the distinction between hyperscale and retail interconnection. While Equinix participates in hyperscale through its xScale program (e.g., Google’s deployment at SP5), its strength lies in creating dense interconnection ecosystems.Carvalho noted that even hyperscale operators rely on Equinix for interconnection services to ensure their clients connect to the broader internet. The region’s future is hybrid, with three verticals emerging:Hyperscale: Massive MW deployments for cloud and AI.Edge: Smaller facilities outside metro areas to reduce latency.Retail: Interconnection hubs that tie it all together.Despite its growth, the data center industry faces public perception challenges. Governments and communities often don’t understand the role data centers play in powering apps, banking, and essential services, leading to delays in permitting and power delivery.Sasse and Carvalho agreed on the need for better industry “marketing.” Companies must educate officials and communities about the connection between data centers and economic growth, emphasizing their role in GDP and local benefits.Though Latin America currently holds a small share of global capacity, its renewable energy, land availability, and stable ecosystem position it for rapid growth. For investors and IT professionals, success will depend on navigating regulatory complexities and power constraints. Those who embrace the hybrid mix of interconnection and scale will see the region’s growth in the next five years outpace the last two decades.Brazil’s Regulatory Tipping PointPower Challenges and Opportunities in MexicoThe Ecosystem AdvantageFixing the Industry’s Marketing ProblemConclusion
