A major data center company in Brazil has unveiled plans for a massive expansion worth $2 billion over the next four years, according to company officials who spoke with Reuters.
Tecto Data Centers, which receives financial backing from BTG Pactual’s investment funds, will construct five new data center facilities across Brazil as part of this ambitious growth strategy extending through 2028. The announcement comes as Latin America’s largest economy experiences a surge in data center development.
Brazil has been positioning itself as an attractive destination for major data center investments, drawing interest from American companies and Chinese tech giant TikTok by highlighting its affordable renewable energy sources and plentiful water supplies.
Tecto’s Chief Revenue Officer Tito Costa explained that while government tax incentives through the Redata program would be beneficial, they aren’t crucial for moving forward with the company’s expansion strategy. Brazilian officials have been working to restart this incentive program.
Costa emphasized that part of Tecto’s strategy involves bringing high-quality enterprise services to underserved regions throughout Brazil.
“Today, companies are often forced to go to Sao Paulo or Rio de Janeiro, the country’s main data center hubs, in order to access top-tier services. We see this as a very good opportunity, it helps to justify part of these investments outside Sao Paulo,” Costa stated.
The expansion includes a 20-megawatt capacity facility planned for Porto Alegre in southern Brazil, alongside a much larger 200-megawatt data center in Santana do Parnaiba, located in the greater Sao Paulo metropolitan region.
These two announced facilities, combined with three additional centers yet to be revealed, will expand Tecto’s current network of seven operational data centers. The existing facilities span from Rio de Janeiro to Fortaleza in Brazil’s northeast, and extend internationally to Barranquilla on Colombia’s coast.
This major investment follows Tecto’s separation last year from telecommunications infrastructure company V.Tal, another BTG-backed firm that manages an extensive network including 26,000 kilometers of underwater cables and 450,000 kilometers of terrestrial fiber networks.
