Market Forecast by Countries (Brazil, Mexico, Argentina, Rest of Latin America), By Type (Retail colocation, Wholesale colocation), By End-User (Small and Medium-Sized Enterprises (SMEs), Large Enterprises), By Industry (Banking, Financial Services, and Insurance (BFSI), IT and telecom, Government and defense, Healthcare, Research and academics, Retail, Energy, Manufacturing) And Competitive Landscape
| Product Code: ETC4613801 | Publication Date: Jul 2023 | Updated Date: Dec 2025 | Product Type: Report | |
| Publisher: 6Wresearch | Author: Ravi Bhandari | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 |
According to 6Wresearch internal database and industry insights
Below mentioned are the evaluation of year-wise growth rate along with key drivers:
| Years | Est. Annual Growth (%) | Growth Drivers |
| 2021 | 2.4 | Rising cloud migration among SMEs requiring third-party hosting. |
| 2022 | 3.6 | Rising adoption of multi-tenant facilities to reduce IT infrastructure costs. |
| 2023 | 4.9 | Development of telecom networks and edge-computing readiness. |
| 2024 | 5.8 | Growing requirement for hybrid IT architectures from banking and manufacturing sectors. |
| 2025 | 6.7 | Surge in hyperscale cloud expansion and AI workloads requiring scalable colocation racks |
The Latin America Data Center Colocation Market report thoroughly covers the market by Countries, By Type, By End-User, and By Industry. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
| Report Name | Latin America Data Center Colocation Market |
| Forecast period | 2026-2032 |
| CAGR | 10.6% |
| Market Size | USD 3.1 billion by 2032 |
| Growing Sector | IT & Telecom |
The Latin America Data Center Colocation Industry has developed rapidly with rising cloud incorporation, IT outsourcing, and increased use of data-driven digital services across enterprises. The growing reliance on internet connectivity, e-commerce, and financial technologies accelerates the need for scalable, secure, and cost-efficient colocation environments. Additionally, the surge in hyperscale cloud deployments and investments in submarine fiber-optic cables supports the region’s colocation capacity. Rising digitization, increasing data traffic, and expanding AI workloads further enhance market growth.
Below mentioned are some prominent drivers and their influence to the market dynamics:
| Drivers | Primary Segments Affected | Why it matters (evidence) |
| Rising Cloud Computing Adoption | SMEs, IT & Telecom | Increased migration to cloud-first architectures increases demand for hybrid colocations. |
| Growth of Fintech & Digital Payments | BFSI, Large Enterprises | Rapid expansion of digital banking and payment gateways drives secure colocation hosting. |
| Expansion of Fiber-Optic Connectivity | Telecom, Government | New submarine cable projects improve bandwidth and data routing effectiveness. |
| Increasing AI & Edge Computing Demand | IT & Telecom, Research | Higher AI processing workloads require low-latency hosting and rack density optimization. |
| Regulatory Push for Local Data Storage | BFSI, Healthcare | National data-sovereignty rules drive enterprise movement toward in-region colocation facilities |
The Latin America Data Center Colocation Market size is projected to grow at a CAGR of 10.6% during 2026–2032. The demand of the product is proliferated by myriad of components few such examples include: the increasing usage of cloud services, digital transformation across BFSI, and expansion of cross-border fiber networks which drive Latin America Data Center Colocation Market Growth. Then there also is higher requirement for reliable infrastructure for AI, machine learning, and edge data processing that is forecasted to surge significantly in the upcoming years. Furthermore, the increasing need for secure data hosting among government and defense departments strengthens market advancement.
Below mentioned are some major restraints and their influence to the market dynamics:
| Restraints | Primary Segments Affected | What this means (evidence) |
| High Energy & Infrastructure Costs | Wholesale & Retail | Data centers require high-capacity power systems, increasing operational expenses. |
| Limited Availability of Skilled Workforce | Government, IT & Telecom | Shortage of specialized engineers affects facility operations and efficiency. |
| Regulatory Complexity Across Countries | BFSI, Healthcare | Different compliance laws slows down deployment of cross-border colocation establishments. |
| Power Reliability Issues | Brazil, Argentina | Grid instability increases reliance on backup power systems, affecting costs. |
| Rising Cybersecurity Threats | All Industries | Increased security investment is required to maintain compliance and data protection |
The market faces multiple challenges such as high capital expenditure for building Tier III and Tier IV facilities, variations in national data protection laws, and unstable power supply in several LATAM countries. Additionally, the rising energy consumption and sustainability requirements have led to increased operational costs which affect facility expansion. Moreover, there is also limited availability of suitable real estate which further limits the expansion of new large-scale colocation sites.
Several prominent trends reshaping the market growth include:
Some prominent investment opportunities in the market include:
Some leading players operating in the market include:
| Company Name | Equinix, Inc. |
| Established Year | 1998 |
| Headquarters | California, USA |
| Official Website | Click Here |
Equinix operates IBX data centers across Brazil, Mexico, and Colombia, providing large-scale colocation, interconnection, and cloud peering services.
| Company Name | Ascenty (Digital Realty) |
| Established Year | 2010 |
| Headquarters | São Paulo, Brazil |
| Official Website | - |
Ascenty is one of Latin America’s largest data center operators offering Tier III facilities with strong connectivity to global cloud networks.
| Company Name | Scala Data Centers |
| Established Year | 2020 |
| Headquarters | São Paulo, Brazil |
| Official Website | Click Here |
Scala specializes in hyperscale-oriented data centers with sustainable infrastructure and large power capacity deployments.
| Company Name | KIO Networks |
| Established Year | 2002 |
| Headquarters | Mexico City, Mexico |
| Official Website | Click Here |
KIO Networks provides colocation and managed hosting solutions with strong presence across Mexico and Central America.
| Company Name | Lumen Technologies |
| Established Year | 1930 |
| Headquarters | Louisiana, USA |
| Official Website | Click Here |
Lumen operates multiple colocation centers with strong fiber connectivity supporting enterprise cloud and security services.
Regulations throughout Latin America are working to improve data protection, enhance digital security, and provide infrastructure development. For example, Brazil’s LGPD (General Data Protection Law) that demand enterprises to host sensitive data securely within compliant environments, increasing local colocation demand. Mexico’s Federal Data Protection Law (LFPDPPP) mandates protect processing of consumer data, encouraging enterprises to use certified colocation facilities. Along with that, there are initiatives like Brazil’s National Digital Transformation Strategy (E-Digital) encourage digital infrastructure modernization.
The Latin America Data Center Colocation Market is expected to flourish with rising cloud adoption, digital banking, 5G rollout, and AI-driven technologies. Increased investment from global cloud providers and hyperscalers will accelerate construction of large-capacity facilities. Expanding submarine cable routes, improved energy infrastructure, and rising data privacy regulations further support Latin America Data Center Colocation Market Share. The increasing need for secure, scalable, and sustainable colocation environments will continue to lead to new growth avenues.
The report offers a comprehensive study of the following market segments and their leading categories.
According to Rashika, Senior Research Analyst at 6Wresearch, Brazil holds the largest share due to being the region’s biggest digital economy, strong hyperscale cloud adoption, and significant investment in fiber networks and submarine cable systems.
Retail colocation dominates the market as SMEs increasingly prefer renting smaller rack spaces instead of investing in full-scale data center infrastructure. The flexibility, lower upfront cost, and easier scalability of retail colocation make it the preferred choice across LATAM.
Large enterprises lead the market owing to high requirements for secure hosting, compliance, and disaster-recovery infrastructure. Sectors such as banking, telecom, and government increasingly utilize dedicated colocation environments to manage large-volume data workloads.
The IT and telecom sector dominates due to rapid growth in cloud services, expansion of mobile networks, and increasing data traffic. Telecom operators rely heavily on colocation centers to support 5G deployment, edge computing, and cross-connect infrastructure.
The Latin America Data Center Colocation Market report provides a detailed analysis of the following market segments:
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 Latin America Data Center Colocation Market Overview |
| 3.1 Latin America Regional Macro Economic Indicators |
| 3.2 Latin America Data Center Colocation Market Revenues & Volume, 2022 & 2032F |
| 3.3 Latin America Data Center Colocation Market - Industry Life Cycle |
| 3.4 Latin America Data Center Colocation Market - Porter's Five Forces |
| 3.5 Latin America Data Center Colocation Market Revenues & Volume Share, By Countries, 2022 & 2032F |
| 3.6 Latin America Data Center Colocation Market Revenues & Volume Share, By Type , 2022 & 2032F |
| 3.7 Latin America Data Center Colocation Market Revenues & Volume Share, By End-User, 2022 & 2032F |
| 3.8 Latin America Data Center Colocation Market Revenues & Volume Share, By Industry, 2022 & 2032F |
| 4 Latin America Data Center Colocation Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.2.1 Increasing adoption of cloud services in Latin America |
| 4.2.2 Growing demand for data storage and management solutions |
| 4.2.3 Rising need for data security and compliance measures in the region |
| 4.3 Market Restraints |
| 4.3.1 High initial investment costs for setting up data center colocation facilities |
| 4.3.2 Limited availability of skilled IT professionals in the region |
| 4.3.3 Challenges related to power and cooling infrastructure in Latin America |
| 5 Latin America Data Center Colocation Market Trends |
| 6 Latin America Data Center Colocation Market, 2022 - 2032 |
| 6.1 Latin America Data Center Colocation Market, Revenues & Volume, By Type , 2022 - 2032 |
| 6.2 Latin America Data Center Colocation Market, Revenues & Volume, By End-User, 2022 - 2032 |
| 6.3 Latin America Data Center Colocation Market, Revenues & Volume, By Industry, 2022 - 2032 |
| 7 Brazil Data Center Colocation Market, 2022 - 2032 |
| 7.1 Brazil Data Center Colocation Market, Revenues & Volume, By Type , 2022 - 2032 |
| 7.2 Brazil Data Center Colocation Market, Revenues & Volume, By End-User, 2022 - 2032 |
| 7.3 Brazil Data Center Colocation Market, Revenues & Volume, By Industry, 2022 - 2032 |
| 8 Mexico Data Center Colocation Market, 2022 - 2032 |
| 8.1 Mexico Data Center Colocation Market, Revenues & Volume, By Type , 2022 - 2032 |
| 8.2 Mexico Data Center Colocation Market, Revenues & Volume, By End-User, 2022 - 2032 |
| 8.3 Mexico Data Center Colocation Market, Revenues & Volume, By Industry, 2022 - 2032 |
| 9 Argentina Data Center Colocation Market, 2022 - 2032 |
| 9.1 Argentina Data Center Colocation Market, Revenues & Volume, By Type , 2022 - 2032 |
| 9.2 Argentina Data Center Colocation Market, Revenues & Volume, By End-User, 2022 - 2032 |
| 9.3 Argentina Data Center Colocation Market, Revenues & Volume, By Industry, 2022 - 2032 |
| 10 Rest of Latin America Data Center Colocation Market, 2022 - 2032 |
| 10.1 Rest of Latin America Data Center Colocation Market, Revenues & Volume, By Type , 2022 - 2032 |
| 10.2 Rest of Latin America Data Center Colocation Market, Revenues & Volume, By End-User, 2022 - 2032 |
| 10.3 Rest of Latin America Data Center Colocation Market, Revenues & Volume, By Industry, 2022 - 2032 |
| 11 Latin America Data Center Colocation Market Key Performance Indicators |
| 12 Latin America Data Center Colocation Market - Opportunity Assessment |
| 12.1 Latin America Data Center Colocation Market Opportunity Assessment, By Countries, 2022 & 2032F |
| 12.2 Latin America Data Center Colocation Market Opportunity Assessment, By Type , 2022 & 2032F |
| 12.3 Latin America Data Center Colocation Market Opportunity Assessment, By End-User, 2022 & 2032F |
| 12.4 Latin America Data Center Colocation Market Opportunity Assessment, By Industry, 2022 & 2032F |
| 13 Latin America Data Center Colocation Market - Competitive Landscape |
| 13.1 Latin America Data Center Colocation Market Revenue Share, By Companies, 2022 - 2032 |
| 13.2 Latin America Data Center Colocation Market Competitive Benchmarking, By Operating and Technical Parameters |
| 14 Company Profiles |
| 15 Recommendations |
| 16 Disclaimer |