AI in Latam: Why Data Centers Are the Foundation of Development

Artificial intelligence has moved beyond futuristic promise to become a concrete tool for transformation in Latin America. From precision agriculture to AI-assisted medical diagnostics, technology is already making a tangible impact in key sectors of the region's economy. However, for this digital revolution to be sustainable and scalable, it requires more than technological innovation alone: it demands robust, reliable, and efficient digital infrastructure. In this context, data centers play a central role.

Latin America’s AI Surge

AI adoption is gaining strong momentum across the region. According to a 2024 study by Statista, countries like Peru and Mexico show high levels of public support for the use of AI, with approval ratings of 70% and 65%, respectively. This social acceptance is being translated into growing public and private investment, as well as national strategies aimed at encouraging the adoption of AI across sectors such as healthcare, education, logistics, manufacturing, and finance.

Chile, for instance, has implemented a national AI strategy backed by more than US$100 million in research and development funding. These efforts are not isolated — other countries are following suit, recognizing AI’s transformative potential to address structural challenges and improve regional competitiveness.

With a similar intent, the Brazilian federal government has recently announced a tax incentive package to lure global data center users to invest in the country.

Infrastructure: The Backbone of AI

Advanced AI applications, especially those involving machine learning and natural language processing, require handling enormous volumes of data. That demand cannot be met without infrastructure that enables secure, rapid, and efficient storage and processing. This is precisely where data centers come into play.

According to a 2024 report by IMARC Group, the Latin American data center market is expected to grow from US$15.38 billion in 2024 to more than US$32.74 billion by 2033, with a compound annual growth rate (CAGR) of 8.11%. This growth is directly linked to the exponential increase in data generated by digital services and AI-driven applications.

Mexico is emerging as a strategic player in this transformation. With large-scale digital infrastructure investments currently underway, the country has the opportunity to position itself as a key technological node in the region. This evolution will be further driven by rising demand for digital services in sectors such as finance, logistics, manufacturing, and government. For this opportunity to materialize, it requires timely access to modern, resilient, and sustainable data centers to support the rapid expansion of AI. This can only be achieved with support and investments by governmental agencies. 

Energy, Efficiency, and Sustainability: Challenges, but Also Opportunities

Building digital infrastructure at scale does not come without challenges. One of the most pressing is the energy demand associated with data centers. These facilities consume large amounts of electricity, which can put pressure on existing electrical grids, especially in areas with underdeveloped infrastructure.

However, this challenge also presents a significant opportunity. Latin America has enormous potential in renewable energy sources, including solar, wind, and hydroelectric power. In fact, several countries in the region generate more than 70% of their electricity from clean sources; for example, Paraguay and Brazil produce over 90%, Uruguay around 98%, and Costa Rica more than 98% of their electricity from renewable sources (Statista). This strong renewable energy base gives Latin America a competitive advantage in offering sustainable digital infrastructure. Integrating renewable energy into the design and operation of data centers not only reduces their carbon footprint but also enhances long-term efficiency and cost-effectiveness.

Additionally, the use of intelligent technologies to manage energy and cooling systems within data centers can significantly improve sustainability. AI-based energy optimization systems can monitor and adjust performance in real time, improving operational efficiency and extending the life cycle of the infrastructure. In this way, AI can help solve the very challenges that its deployment creates.

A Shared Responsibility

As the CEO of a data center company operating across Latin America, I’ve seen firsthand the speed at which digital infrastructure demand is evolving in our region. This transformation cannot be driven by the private sector alone. Governments must continue to promote policy frameworks that encourage digital investment, incentivize the use of renewable energy, and support digital skills development. In Mexico, the challenges are mostly related to upgrades and availability of energy at the distribution level, deficiencies in transmission, and renewed private investment in the generation of renewable energy.

At the same time, society at large must participate in discussions about how AI should be implemented — ethically, inclusively, and in service of sustainable development. Technology alone will not solve our structural problems. It is the intelligent and responsible use of technology that will make a difference.

Conclusion

Artificial intelligence has the potential to become one of the main drivers of growth and development in Latin America. But that potential cannot be realized without a strong foundation of digital infrastructure. Data centers are not just buildings full of servers, they are the technological heart of the digital transformation we are undergoing. Constructing efficient, secure, and sustainable data centers is as important as developing the algorithms or applications we use every day.

If we want Latin America to rise to the global technological challenge, we must invest not only in innovation, but also in the platforms that enable it. The time to build that foundation is now.