Multinational companies are increasingly seeking alternatives to traditional tech hubs in North America, Europe, and Asia—and Latin America is quickly entering that conversation. Among the region’s contenders, Brazil stands out not just for its scale but for its readiness. With a growing AI ecosystem, an investor friendly legal framework, and a maturing digital infrastructure, the country is well-positioned to become a strategic technology hub.
In 2023 alone, over 73% of Brazilian IT and telecom leaders reported they would maintain or accelerate their tech budgets, with priorities spanning Gen AI, cybersecurity, cloud infrastructure (IaaS/PaaS), and data analytics. Brazil’s overall ICT market is projected to grow at a CAGR of over 16% from 2023 to 2028, fuelled by demand for scalable infrastructure, automation, and cloud-native services.
Global tech leaders are taking notice. Microsoft’s US $2.9 billion investment in cloud and AI infrastructure across São Paulo, paired with its goal of training 5 million Brazilians in AI skills, signals both confidence and commitment. While Ascenty, Equinix, ODATA, Tecto, and Grupo FS are rapidly expanding their data center footprints in the region. Meanwhile, Rio de Janeiro’s upcoming “AI City” is set to become the largest data center hub in Latin America—a landmark in clean, sustainable infrastructure.
The convergence of talent, time zone alignment, and cost advantage is also drawing global enterprises to outsource software development to Brazil. With over 500,000 IT professionals and 46,000+ graduates annually, the country offers not just cost efficiency but technical excellence.
As digital transformation accelerates globally, Brazil has a golden opportunity to lead the next wave of tech innovation in Latin America. The moment is now—for investors, innovators, and institutions alike.
At TH Global Capital, we help companies navigate the Latin American market—whether you are exploring M&A opportunities, raising capital, or seeking strategic partnerships. With a presence in 13+ countries, our deep market insights and global network can be your bridge to success in this dynamic region.
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Brazil’s overall ICT market is projected to grow at a CAGR of over 16% from 2023 to 2028 – Source: GlobalData
In 2023 alone, over 73% of Brazilian IT and telecom leaders reported they would maintain or accelerate their tech budgets : Source: Microsoft