Brazil data center hardware market size was valued at USD 1,170.8 million in 2024 and is projected to grow to USD 1,599.6 million by 2028, registering a compound annual growth rate (CAGR) of 8.4% from 2025 to 2028.
Brazil's market is growing tremendously, mainly because of the country's increasing requirement for digital infrastructure, cloud computing, and enterprise data management. It is the biggest economy in Latin America and the most significant player in the region's digital expansion. The hub is in São Paulo, where most data centers are situated. The need for improved servers, storage, and networking equipment is rising as businesses seek to update their IT infrastructure to deal with greater data, enhanced processing times, and secure storage.
The government is accelerating digital transformation and promoting foreign investments in IT. The regulations, such as the Lei Geral de Proteção de Dados (LGPD), are also making their mark on how firms handle data. Sectors like banking, telecommunications, health care, and retail are all investing in scaling their data centers to enable digital activity. Colocation and hyperscale data centers are becoming more prominent as they offer effective solutions. Increased growth in 5G, IoT, and edge computing also demands more advanced hardware, allowing businesses to process information in real-time with lower latency.
Organisations are looking at energy-efficient hardware and more environmentally friendly solutions to save on electricity expenses and reduce their carbon footprint. Most operators of data centers are using renewable energy and high-tech cooling systems to save power. Brazil is large in real estate and has an expanding energy base, making it a good country to construct data centers. International cloud titans and domestic players are investing in infrastructure, guaranteeing the demand for high-performance hardware.
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