It is no wonder that, thanks to power availability, competitive construction costs, and an increasingly experienced supply chain, Brazil has become a natural hub for digital infrastructure. As highlighted in Soben’s 2026 Data Centre Trends Report, the industry is being shaped by new trends, with certain regions poised to take centre stage this year. In this article, Brazil Director William Ferreira dives deeper into this fascinating market and shares firsthand insights into what makes Brazil a one-of-a-kind opportunity for hyperscale developers.
Brazil combines three conditions that hyperscalers value: a very large and growing digital consumption market, strong cloud adoption across enterprise and public sectors, and a maturing local ecosystem capable of supporting complex data center construction.
However, what still holds the market back is not demand, but predictability. Bureaucracy, permitting timelines, tax complexity, and logistics planning for imported equipment can introduce uncertainty for international players unfamiliar with the environment. The challenge is less about capability and more about navigating the local operating context efficiently.
Recognizing the differences
One aspect that I see frequently underestimated by international clients are the regional differences between states. São Paulo offers the most mature data center ecosystem in the country, with proximity to specialized suppliers, experienced contractors, robust logistics infrastructure, and greater utility readiness. This concentration of capability provides higher predictability in procurement, labor allocation, and program delivery.
However, other regions are rapidly emerging as strategic data center hubs. Cities such as Fortaleza, driven by its position as a major subsea cable landing point, and Porto Alegre, supported by strong energy infrastructure and regional demand, are becoming more attractive for hyperscale investment. These regions can offer advantages such as lower land costs, and energy availability, but they often lack the same density of specialized suppliers and hyperscale-experienced labor found in São Paulo.
The key point here is that Brazil is not homogeneous from an execution perspective. Site location directly influences procurement strategy, contractor capability, logistics planning, and schedule certainty, and this regional variability must be considered early in project planning.
Capitalizing on local suppliers
Brazilian suppliers are particularly strong in civil works, structural steel, precast solutions, cable trays, containment systems, electrical panels, piping systems, and general MEP installation support. The local industry is very capable of supporting high-volume, repeatable construction elements that hyperscale projects require.
This is important to note, as having a local supplier can considerably decrease costs. For example, I’ve experienced faster solutions and lower costs when working with local suppliers providing racking structures for hot/cold containment, LV/MV panels, cable trays, louvres, and more. Local fabrication reduces lead times from months to weeks, eliminates import taxes and customs delays, and allows fast design adjustments during construction without program impact.
The main gaps are observed in highly specialized equipment such as generators (where local industry exists but capacity cannot be increased), chillers, UPS systems, and certain control systems that still depend on international manufacturers. These gaps are managed through early procurement planning, framework agreements, and integrating local installation capability with imported equipment supply.
Adaption of construction capabilities
Political support alone is not enough. Local communities must also be engaged early and meaningfully.
The data centre sector continues to face perception challenges, particularly around power and water usage. If these concerns are not addressed proactively, they can significantly delay projects.
On a recent project in Norway, we supported a client in producing a community benefits report comparing the proposed data centre with an alternative industrial facility on the same site. The findings were clear: the data centre would be quieter, cleaner and less disruptive, while also generating high-quality employment and local revenue.
Publishing this analysis helped shift the narrative and build local support. Early and transparent engagement has been instrumental in keeping that project on track.
Taking Control of Resource Constraints
Resource availability remains one of the biggest permitting barriers. For power- and water-intensive facilities, approval is only possible where sufficient capacity exists.
Pre-identifying suitable sites is one solution. Increasingly, however, developers are taking more direct control.
Heat reuse schemes are becoming more common and can materially reduce community concerns. Our Norwegian client, for example, has committed to implementing heat reuse across its developments, supplying district heating and supporting local housing.
Power strategy is evolving too. Norway continues to lead in renewable-powered facilities, primarily through hydroelectric generation. Backup systems are also changing, with some developers moving away from much-criticised diesel generators towards lower-emission alternatives.
However, the reality remains that in many markets there is simply not enough grid capacity. This is driving interest in off-grid and ‘behind-the-meter’ solutions, allowing developers to reduce reliance on constrained networks and accelerate approvals.
We are also seeing major hyperscalers explore greater ownership of their energy strategies, whether through direct procurement, private generation or strategic investments. For example, Google’s recent $4.75 billion acquisition of Intersect Power demonstrates how leading tech firms are securing generation capacity directly to support long-term data centre growth.
Embedding Permitting into Early Strategy
Permitting challenges are rarely solved late in the programme. Early strategy is critical.
At Soben, we are working closely with clients to take a proactive approach to permitting from the outset. On our Norway project, we are leading the permitting strategy, engaging directly at the local municipality and government level, and identifying opportunities to fast-track approvals through structured engagement and early clarity.
Understanding local precedent is equally important. Knowing where previous projects have stalled helps avoid repeating mistakes. Working with experienced local partners, engaging authorities early, and clearly mapping out requirements from the outset all reduce risk.
We recommend seeking outline approvals as early as feasible, rather than waiting for detailed design. Where appropriate, securing consent for broader parameters can also avoid the need to return for amendments later.
Turning Permitting into Competitive Advantage
Permitting is unlikely to become easier. As facilities grow larger and more resource-intensive, scrutiny will increase. Even where governments recognise the strategic importance of digital infrastructure, growing volumes of development inevitably create pressure on planning systems.
Developers who succeed will be those who treat permitting not as an administrative step, but as a core element of delivery strategy. Early planning, smart site selection, flexible design, meaningful community engagement and innovative energy solutions will differentiate projects that move forward from those that stall.
Permitting is now part of the competitive landscape. Those who plan for it early, and manage it strategically, will move faster.
Soben is now part of Accenture’s growing Infrastructure and Capital Projects practice where our hands-on expertise in delivering complex capital projects is complementing Accenture’s deep digital and industry knowledge across the data centre project lifecycle. Our combined team is helping organizations around the globe to design, build, and run next generation data centres that set the stage for growth, agility, and smooth operations.
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