In case you’re in search of a snapshot of the Latin American telecommunications panorama going into 2026, look no additional than what is going on on in Brazil. As the most important regional financial system, Brazil’s telecom market influences the route of regional markets—and there is a lot to be aware of.
Utilizing our personal information and evaluation, and with enter from our telecom business contracts in Latin America, we have summarized what you have to know concerning the telecom business in Brazil as we glance to 2026.
Learn on to study:
- The speedy progress of information facilities throughout Brazil, with a concentrate on rising hubs, and driving forces resembling dependable vitality, authorities incentives, and subsea cable proximity.
- Worth erosion in Brazil’s wholesale marketplace for spine connectivity and IP transit.
- The rising significance of digital sovereignty in community infrastructure, and concerns for numerous routing of submarine cables and various satellite tv for pc connectivity options.
Extra information facilities, in additional places
In accordance with our Information Heart Analysis Service platform, Brazil is at the moment residence to 112 information facilities. However that quantity is shortly rising, with a spread of firms trying to open new amenities within the close to future.
Map of present information facilities in Brazil. Supply: TeleGeography’s Information Heart Analysis Service
Lots of the deliberate information facilities in Brazil will likely be constructed in a well-known location: São Paulo. The better metropolitan space of São Paulo has traditionally served as a hub for information facilities—and associated connectivity—inside Brazil and Latin America. We count on 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 a few of the anticipated progress within the nation.
Exterior of São Paulo, Fortaleza has emerged as an more and more enticing location for brand spanking new information facilities to be constructed. Contacts we spoke with observe that a number of components assist clarify this, together with a dependable vitality 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 accordance with TeleGeography’s submarine cable map, this could be the primary subsea system to reach in Porto Alegre, doubtlessly sparking new funding in information facilities all through the encircling space.
Different Brazilian cities we now have heard mentioned embrace Recife, Natal, Manaus, and Brasilia. When evaluating potential websites for community enlargement, components like vitality availability, surroundings influence, and proximity to submarine cable touchdown stations.
Transport and IP value erosion
One other subject we now have been taking note of is a well-known one: value 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 in recent times.
Weighted Median 100 Gbps Wavelength Costs & CAGR Worth Decline on World 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 value for 100 Gbps wavelengths on choose routes around the globe, with the crimson bubbles displaying value erosion from 2022-2025. Towards the left is Miami–São Paulo, the place the weighted median value for 100 Gbps was $10,400 in Q2 2025, a 22% drop since 2022. We’ve just lately heard much more aggressive quotes, with some contacts reporting as little as $5,000 for 100 Gbps on this essential route between Brazil and the USA.
Just like transport, IP transit costs have additionally grow to be extraordinarily aggressive in Brazil. We sometimes hear carriers report flat pricing approaches in Brazil’s high three connectivity hubs of São Paulo, Rio de Janeiro, and Fortaleza. And throughout all these markets, we now have been instructed that costs have fallen as little as $0.10/Mbps for a ten GigE port.
In accordance with our IP Transit Pricing Database, the weighted median value 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 value for a port in São Paulo of the identical capability had a weighted median value of $1.04/Mbps. That’s a fee 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 essential themes stand out:
- Submarine cables
- Satellites
Extra particularly, business stakeholders are discussing choices for numerous routing of subsea techniques and options to U.S.-based satellite tv for pc connectivity options.
Map of current and deliberate submarine cable techniques 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 techniques provide numerous 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 business to rethink who owns the underlying infrastructure, which international locations it connects to, and find out how to mitigate any potential danger.
Just like subsea cables, these fascinated with satellite tv for pc connectivity have more and more requested what choices exist that assist a given nation’s objectives of information sovereignty. A lot of this consideration is directed towards Low Earth Orbit (LEO) satellites, the place the one lively 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 information safety and infrastructure administration, can grow to be sophisticated in lots of components of the world, together with in Brazil.
Map of nations the place Starlink companies are at the moment commercially out there. Supply: TeleGeography’s GlobalComms Database.
In search of extra information?
You may see all the unique information included on this evaluation and rather more in TeleGeography’s analysis platforms. Study extra concerning the instruments we used on this dialogue:
Information Heart Analysis Service
Wavelengths Pricing Database
IP Transit Pricing Database
GlobalComms Database
