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Brazil Cloud Computing Market Trends

Statistics for the 2023 & 2024 Brazil Cloud Computing market trends, created by Mordor Intelligence™ Industry Reports. Brazil Cloud Computing trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Brazil Cloud Computing Industry

Rapid Digitalization and Growth of Data Centers

  • As Brazilian businesses digitize their operations, the demand for scalable and flexible IT infrastructure, which cloud computing provides, is surging. Companies are turning to cloud-based solutions not just for operational efficiency but also to automate processes and elevate customer engagement. Furthermore, cloud computing seamlessly integrates digital tools such as AI, machine learning, and big data analytics into business workflows, further fueling the demand for these services.
  • To cater to the surging demand for cloud services, global and local cloud providers are investing significantly in data centers throughout Brazil. Industry giants such as AWS, Microsoft, and Google have set up these local data centers, ensuring Brazilian customers receive low-latency and secure cloud solutions. These strategically positioned data centers enhance service speed and reliability and ensure adherence to Brazil's stringent data protection regulations.
  • For instance, in September 2024, Amazon Web Services (AWS) plans to invest BRL 10.1 billion (USD 1.8 billion) in its Brazilian data center operations by 2034. AWS stated that the investment will facilitate the expansion, construction, connection, operation, and maintenance of data centers across Brazil. Since 2011, AWS has operated a cloud region in Sao Paulo featuring three Availability Zones. AWS has established Edge locations in Rio de Janeiro, São Paulo, and Fortaleza.
  • For instance, according to DataCenter Maps, Brazil has 150 data centers. Sao Paulo has the largest concentration, with 55 data centers, followed by Rio de Janeiro, which has 21 data centers.
  • Cloud computing presents a budget-friendly solution to conventional IT infrastructure, especially for small and medium-sized enterprises (SMEs). Utilizing cloud services allows SMEs to sidestep the hefty initial expenses tied to establishing their own data centers. With the expansion of data center infrastructure, cloud providers are able to present increasingly competitive pricing, enhancing the allure of cloud adoption for businesses, regardless of their size.
Brazil Cloud Computing Market: Number of Data Centers, in units, Brazil, 2023

Telecom and IT to Hold a Major Share

  • Brazil's deployment of 5G technology, coupled with the expansion of fiber optic networks, is poised to boost cloud adoption. The combination of faster internet speeds and reduced latency allows businesses to tap into cloud services more effectively, driving up demand. Notably, 5G is anticipated to catalyze the growth of IoT applications, smart cities, and autonomous technologies, which will rely heavily on cloud infrastructure.
  • As reported by Telco Br, Brazil's telecommunication industry has seen a significant surge in net revenue from 2000 to 2023. Specifically, in 2023, Brazilian telecoms raked in revenues of BRL 174 billion (USD 30.92 billion), marking an increase from the BRL 163.5 billion (USD 29.05 billion) recorded in 2022.
  • Nokia has been chosen by TIM Brasil (TIM) to enhance its 5G radio access network (RAN) coverage across 15 Brazilian states, starting January 2025. This collaboration aims to broaden 5G access to more municipalities, ensuring a larger segment of the population benefits from secure, ultra-high-speed connectivity. This expansion empowers enterprises in these areas to digitize their operations, spurring innovation and bolstering economic growth.
  • As part of the agreement, Nokia will provide a suite of equipment from its renowned 5G AirScale portfolio. This includes baseband units, Massive MIMO radios, and Remote Radio Head products, all driven by the energy-efficient ReefShark System-on-Chip technology, ensuring enhanced coverage and capacity.
  • In Brazil, leading telecom firms like Telefônica Brasil (Vivo) and Claro are venturing into cloud services, responding to the surging demand for cloud infrastructure from both businesses and consumers. These telecom giants are either rolling out their proprietary cloud solutions or collaborating with international cloud providers, delivering services like Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS). These telecom companies amplify their market share by weaving cloud services into their core offerings.
  • For instance, in July 2024, Telefónica|Vivo strategically moved by acquiring IPNET, a Brazilian cloud services provider. This acquisition aims to bolster its rapidly expanding business-to-business digital services segment. The deal, valued at up to BRL 230 million (~USD 46 million), sees Telefônica Cloud e Tecnologia do Brasil (TCloud), a unit of Telefónica, taking over all of IPNET's operations, including its subsidiary in the United States. However, the final purchase price hinges on meeting specific operational and financial benchmarks, as highlighted by the company.
Brazil Cloud Computing Market: Net revenue of the Telecommunication industry, in BRL Billions, Brazil, 2013 - 2023

Brazil Cloud Computing Market Size & Share Analysis - Growth Trends & Forecast (2024 - 2029)