Brazil is well-equipped to finance capital-intensive investments, boasting a robust financial infrastructure that encompasses both public and private funding sources. Additionally, Brazil has a widely accessible banking credit system and a well-developed, liquid capital market. In fact, capital markets are one of the most critical components of Brazil's credit supply, providing a solid foundation for large-scale business transactions and investments.

Brazil’s data center market is experiencing promising growth, with projections estimating a total investment of BRL 60 billion in data center infrastructure by 2030. Recently, the National Development Bank (BNDES) introduced a dedicated credit line for investments in the sector, allocating an estimated BRL 2 billion to support private-sector projects across the country.

Investment in data centers has already become a key component of the diversification of Brazil’s real estate sector, focusing on the development and feasibility of facilities that support data infrastructure without directly engaging in data processing. The strategy involves acquiring real estate, constructing and adapting facilities to house data centers, and delivering the completed project to a specialized operator. "The investor is responsible for the structural aspects, including energy supply, security, and necessary equipment. This diversification model enables real estate companies to expand their operations while ensuring greater flexibility and security in investments," explains Lúcia Aragão, partner in Vieira Rezende’s Real Estate practice.

There are numerous ways to invest in the sector in Brazil.  The country's financial model for data centers is diverse and adaptable, accommodating investor capacity and corporate needs. Opportunities range from direct investment in the construction and operation of data centers to participation in real estate funds, mergers, or acquisitions of established local companies. Investors can also focus on infrastructure related to the sector, such as energy, civil construction, or technology. With a well-structured financial ecosystem, Brazil is well-positioned to offer viable financial solutions that support business growth in this industry.

"Brazil is a safe destination for foreign capital.  Inflation is under control, we maintain relative exchange rate stability, our institutions are strong, and our democracy is well-established. Compared to neighbouring countries, we are the most stable and welcoming environment for international investors," says Roberto Vianna, partner in Vieira Rezende’s Banking & Finance practice.

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Authors:

Lúcia Aragão | Partner

Roberto Vianna | Partner