In case you’re searching for 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 be aware of.
Utilizing our personal knowledge and evaluation, and with enter from our telecom trade contracts in Latin America, we have summarized what you could know in regards to the telecom trade in Brazil as we glance to 2026.
Learn on to study:
- The speedy progress of knowledge facilities throughout Brazil, with a deal with rising hubs, and driving forces similar to dependable power, authorities incentives, and subsea cable proximity.
- Value 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 areas
In response to our Information Heart Analysis Service platform, Brazil is presently residence to 112 knowledge facilities. However that quantity is shortly rising, with a spread of corporations trying to open new amenities within the close to future.
Map of present knowledge facilities in Brazil. Supply: TeleGeography’s Information Heart Analysis Service
Most of the deliberate knowledge facilities in Brazil will probably be constructed in a well-recognized location: São Paulo. The larger metropolitan space of São Paulo has traditionally served as a hub for knowledge facilities—and associated connectivity—inside Brazil and Latin America. We anticipate 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.
Outdoors 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 word that a number of components assist clarify this, together with a dependable power 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. In response to TeleGeography’s submarine cable map, this might be the primary subsea system to reach in Porto Alegre, doubtlessly sparking new funding in knowledge facilities all through the encompassing space.
Different Brazilian cities we’ve got heard mentioned embrace Recife, Natal, Manaus, and Brasilia. When evaluating potential websites for community growth, components like power availability, atmosphere affect, and proximity to submarine cable touchdown stations.
Transport and IP worth erosion
One other matter we’ve got been taking note of is a well-recognized one: worth 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 sturdy competitors and plentiful provide have pushed costs down lately.
Weighted Median 100 Gbps Wavelength Costs & CAGR Value Decline on International Routes
Within the above determine, you possibly can see pricing from our Wavelengths Pricing Database to assist visualize this level. Every bar represents the weighted median month-to-month lease worth for 100 Gbps wavelengths on choose routes world wide, with the crimson bubbles displaying worth erosion from 2022-2025. Towards the left is Miami–São Paulo, the place the weighted median worth 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 predominant route between Brazil and the US.
Just like transport, IP transit costs have additionally turn out to be extraordinarily aggressive in Brazil. We sometimes hear carriers report flat pricing approaches in Brazil’s prime three connectivity hubs of São Paulo, Rio de Janeiro, and Fortaleza. And throughout all these markets, we’ve got been informed that costs have fallen as little as $0.10/Mbps for a ten GigE port.
In response to our IP Transit Pricing Database, the weighted median worth 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 worth for a port in São Paulo of the identical capability had a weighted median worth of $1.04/Mbps. That’s a price 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 predominant themes stand out:
- Submarine cables
- Satellites
Extra particularly, trade stakeholders are discussing choices for various routing of subsea methods and options to U.S.-based satellite tv for pc connectivity options.
Map of current and deliberate submarine cable methods 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 methods 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 trade to rethink who owns the underlying infrastructure, which international locations it connects to, and the right way to mitigate any potential danger.
Just like subsea cables, these interested by 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 energetic 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, when it comes to knowledge safety and infrastructure administration, can turn out to be difficult in lots of components of the world, together with in Brazil.
Map of nations the place Starlink providers are presently commercially obtainable. Supply: TeleGeography’s GlobalComms Database.
Searching for extra knowledge?
You’ll be able to see the entire unique knowledge included on this evaluation and way more in TeleGeography’s analysis platforms. Study extra in regards to the instruments we used on this dialogue:
Information Heart Analysis Service
Wavelengths Pricing Database
IP Transit Pricing Database
GlobalComms Database