Should you’re in search of a snapshot of the Latin American telecommunications panorama going into 2026, look no additional than what is going on on in Brazil. As the biggest regional financial system, Brazil’s telecom market influences the course of regional markets—and there is a lot to pay attention to.
Utilizing our personal knowledge and evaluation, and with enter from our telecom business contracts in Latin America, we have summarized what it’s essential know concerning the telecom business in Brazil as we glance to 2026.
Learn on to study:
- The speedy progress of knowledge facilities throughout Brazil, with a concentrate on rising hubs, and driving forces reminiscent of dependable vitality, authorities incentives, and subsea cable proximity.
- Worth erosion in Brazil’s wholesale marketplace for spine connectivity and IP transit.
- The growing significance of digital sovereignty in community infrastructure, and concerns for various routing of submarine cables and different satellite tv for pc connectivity options.
Extra knowledge facilities, in additional places
Based on our Knowledge Heart Analysis Service platform, Brazil is at the moment dwelling to 112 knowledge facilities. However that quantity is rapidly rising, with a spread of corporations seeking to open new amenities within the close to future.
Map of present knowledge facilities in Brazil. Supply: TeleGeography’s Knowledge Heart Analysis Service
Most of the deliberate knowledge facilities in Brazil shall be constructed in a well-known location: São Paulo. The better metropolitan space of São Paulo has traditionally served as a hub for knowledge facilities—and associated connectivity—inside Brazil and Latin America. We count on this to stay true for the foreseeable future. However because the workload on São Paulo’s community retains rising, different cities are jockeying for funding to decentralize among the anticipated progress within the nation.
Exterior of São Paulo, Fortaleza has emerged as an more and more enticing location for brand spanking new knowledge facilities to be constructed. Contacts we spoke with notice that a number of components assist clarify this, together with a dependable vitality grid, governmental incentives, and proximity to a number of subsea cables.
One other metropolis that has repeatedly been talked about is Porto Alegre. This comes after Meta and V.tal introduced plans to increase the Malbec system to land there. Based on TeleGeography’s submarine cable map, this is able to be the primary subsea system to reach in Porto Alegre, doubtlessly sparking new funding in knowledge facilities all through the encircling space.
Different Brazilian cities now we have heard mentioned embrace Recife, Natal, Manaus, and Brasilia. When evaluating potential websites for community growth, components like vitality availability, surroundings influence, and proximity to submarine cable touchdown stations.
Transport and IP value erosion
One other matter now we have been taking note of is a well-known one: value erosion. Particularly within the wholesale market, the price of spine connectivity has plummeted in Brazil. That’s very true in main markets like São Paulo the place robust competitors and plentiful provide have pushed costs down lately.
Weighted Median 100 Gbps Wavelength Costs & CAGR Worth Decline on International Routes
Within the above determine, you’ll be able to see pricing from our Wavelengths Pricing Database to assist visualize this level. Every bar represents the weighted median month-to-month lease value for 100 Gbps wavelengths on choose routes world wide, with the purple bubbles exhibiting value erosion from 2022-2025. Towards the left is Miami–São Paulo, the place the weighted median value for 100 Gbps was $10,400 in Q2 2025, a 22% drop since 2022. We’ve lately heard much more aggressive quotes, with some contacts reporting as little as $5,000 for 100 Gbps on this primary route between Brazil and the US.
Just like transport, IP transit costs have additionally develop into extraordinarily aggressive in Brazil. We usually hear carriers report flat pricing approaches in Brazil’s high three connectivity hubs of São Paulo, Rio de Janeiro, and Fortaleza. And throughout all these markets, now we have been advised that costs have fallen as little as $0.10/Mbps for a ten GigE port.
Based on our IP Transit Pricing Database, the weighted median value for a ten GigE port in São Paulo was $0.30/Mbps in Q2 2025. Evaluate that to 5 years in the past, when our weighted median value for a port in São Paulo of the identical capability had a weighted median value of $1.04/Mbps. That’s a fee of twenty-two% erosion, compounded yearly over that point interval.
The affect of geopolitics on connectivity
Whether or not in Brazil or elsewhere, the subject of digital sovereignty retains arising. Because it pertains to community infrastructure, two primary themes stand out:
- Submarine cables
- Satellites
Extra particularly, business stakeholders are discussing choices for various routing of subsea programs and alternate options to U.S.-based satellite tv for pc connectivity options.
Map of present and deliberate submarine cable programs connecting Brazil to Africa and Europe. Supply: submarinecablemap.com
Brazil’s worldwide connectivity has traditionally been to the U.S. However a number of subsea programs provide various choices, together with EllaLink, SACS, SAIL, and the deliberate Waterworth mission which—whereas nonetheless involving a U.S. touchdown station—would create a novel route from Brazil to South Africa. Present geopolitical tensions have led many within the telecom business to rethink who owns the underlying infrastructure, which nations it connects to, and mitigate any potential danger.
Just like subsea cables, these eager about satellite tv for pc connectivity have more and more requested what choices exist that assist a given nation’s objectives of knowledge sovereignty. A lot of this consideration is directed towards Low Earth Orbit (LEO) satellites, the place the one lively business constellations are U.S.-based Starlink and Eutelsat’s OneWeb, a European firm.
A typical dialog we heard relating to satellites begins with the query, “how can we join the unconnected?” The reply to this query, by way of knowledge safety and infrastructure administration, can develop into difficult in lots of elements of the world, together with in Brazil.
Map of nations the place Starlink companies are at the moment commercially obtainable. Supply: TeleGeography’s GlobalComms Database.
On the lookout for extra knowledge?
You’ll be able to see all the authentic knowledge included on this evaluation and rather more in TeleGeography’s analysis platforms. Be taught extra concerning the instruments we used on this dialogue:
Knowledge Heart Analysis Service
Wavelengths Pricing Database
IP Transit Pricing Database
GlobalComms Database