Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, December 03, 2025

Data center fervor pushes Latin American carrier ecosystem to become AI-Ready

Terrestrial networks and submarine cables ecosystem prepares to meet demands of Generative AI and the new processing capabilities required by existing and upcoming AI data centers

The formation of digital hubs around clusters of data centers is shaping decisions on new fiber network segments, submarine cable branches, and capacity agreements on existing cables. Among these hubs, Querétaro in Mexico stands out, hosting around 24 data centers with plans for further expansion. Notably, Cloud HQ has announced investments of US$ 4.8 billion and the creation of 8,000 jobs. Chile is also following this trend, with 28 operational data centers and plans to add another 35 by 2030. Among the upcoming facilities designed to meet AI demand is Cirion’s SAN2, expected to start operations before the end of 2025 with a capacity of 20 megawatts.

Another forward-looking case in Latin America is Rio AI City in Rio de Janeiro, Brazil, driven by the local government. The project aims to create an AI infrastructure with 3 gigawatts of computing capacity powered entirely by clean energy, with agreements in place with Nvidia and Oracle. Elea Data Centers is building a campus with an initial energy capacity of 1.5 GW, with the first deliveries planned for 2026. This complex will be directly connected to the Mata Maravilha urban regeneration project.

Supporting these deployments requires Data Center Interconnect Technology, which includes the tools and processes for linking data centers.This focus by Latin American wholesale carriers contributes to greater densification of terrestrial networks: Ufinet operates 142,000 km of network in Latin America, with a new underground ring connecting all Cable Landing Stations in Fortaleza; Liberty exceeds 17,000 km of fiber, adding new PoPs in Colombia and Mexico; Sparkle reaches 32 PoPs in Latin America and establishes a presence in Querétaro; and Grupo Datco plans three new cross-Andean routes in Tierra del Fuego, among other projects.

Similarly, new submarine cable projects, renewals, or branches of existing systems respond to the formation of digital hubs around data centers. In the Caribbean, the cable mesh is being reconfigured, with Liberty Networks doubling the capacity of the Maya through Maya 1.2, alongside the new TAM-1 (Trans Americas Fiber System). In the South Atlantic, Cirion’s SAC-2, built over Google’s Firmina cable, became operational in April 2025; in the Pacific, the Humboldt cable, connecting Chile with the Asia-Pacific region, is expected to enter service in 2027.

Other upcoming projects include the Ellalink branch to French Guiana, expected to be operational by the end of 2026, aiming to connect the Caribbean with Europe without routing through the United States, with Fortaleza serving as a data center hub along the way. For this northern Brazilian city, Tecto Data Centers’ Mega Lobster project involves a US$ 550 million investment and a 20-megawatt capacity. Tecto, V.tal’s data center division, is also part of another submarine cable branch initiative in Porto Alegre, extending a 280-kilometer segment from the Malbec cable to the southern Brazilian city to foster another digital hub.

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