The growing demand for new technologies and applications, adopted at increasingly faster rates, requires more intensive processing, closer to end users. In Brazil, the current digital infrastructure model, heavily concentrated in major capitals like São Paulo and Rio de Janeiro, is becoming limited and no longer reflects the country’s current needs.
In a nation of continental scale, relying exclusively on a few hubs to concentrate data processing and connectivity and internet ecosystems, increases operational risks, overloads local resources, and weakens the quality of internet access in different regions. It also affects the balance of data traffic distribution, raising latency for users far from urban centers and undermining overall system resilience.
In this context, decentralization is no longer just a technical strategy - it’s both a necessity and an opportunity from economic and social standpoints. Distributing data centers and content exchange points across other regions of the country increases network reach and resilience, reduces bottlenecks and expands access to mission-critical infrastructure while minimizing potential operational failures. For regions outside major tech hubs, this strategy also drives local development by attracting investment, creating jobs, accelerating digital inclusion, and strengthening regional innovation ecosystems.
Today, the data center market operates through two complementary strategic models. Hyperscale facilities, designed for large-scale processing, provide the scale needed to support public cloud and intensive AI workloads. Edge data centers, on the other hand, are critical to supporting applications that require low latency, such as streaming, gaming, IoT, and real-time AI. Smaller and located closer to end users, edge data centers enable faster, more stable digital experiences while relieving pressure on major hubs.
Brazil has strategic advantages to lead this distributed model. With over 85% of its energy matrix coming from renewable sources, international connectivity via submarine cables, land available for expansion and a fast-growing digital market, the country is well-positioned to attract investment in resilient, sustainable infrastructure. The Northeast has already become a reference with the digital hub built in Fortaleza, and the South is emerging as the next strong alternative to the traditional Southeast concentration, especially following the recent announcement of a new submarine cable arriving in Porto Alegre.
Rethinking the future of Brazil’s digital infrastructure means moving beyond the centralization in major cities. The combination of hyperscale data centers for massive capacity and edge data centers for proximity-based applications creates a robust ecosystem, capable of supporting new technologies and delivering more democratic, efficient access to digital transformation across regions. Decentralizing means building a more connected, resilient, competitive, and economically developed country.
