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Latin America accounts for just 2.2% of the world’s data center capacity but represents one of the fastest-growing opportunities in digital infrastructure. While the U.S. and Asia continue their rapid expansion, LATAM is on the brink of transformation, driven by regulatory changes, renewable energy, and rising interconnection demand.
At PTC in Hawaii, Steve Sasse, VP for Latin America at datacenterHawk, spoke with Eduardo Carvalho, Managing Director for Latin America at Equinix. Carvalho, a seasoned executive in the region, shared insights on market evolution, Brazil’s regulatory shifts, Mexico’s power challenges, and the hybrid future of retail and hyperscale deployments.
Brazil remains the heart of South America’s digital infrastructure, but high import taxes have long delayed hardware deployments. A critical legislative change could soon slash these tariffs from 54% to 2%, unlocking AI adoption and hyperscale growth. While hyperscalers wait for this decision before committing to large-scale projects, Equinix remains confident in its ecosystem-driven model, serving 1,000+ customers with interconnection products regardless of the legislation’s outcome.
The conversation also explored Mexico, focusing on Querétaro and Monterrey. Querétaro, an established hub, faces power transmission issues similar to other global hubs. Carvalho noted Equinix is exploring power alternatives and anticipates solutions soon.
Meanwhile, Monterrey emerges as a strong alternative, offering:
Proximity to the U.S. border: Enabling low-latency links to Dallas.
Lower power costs: Around $0.06 per kWh versus $0.11–$0.13 in Querétaro.
Access to natural gas infrastructure: Sharing resources with Western Texas.
Equinix aims to resolve Querétaro’s challenges but recognizes Monterrey’s undeniable growth potential.
A key theme was the distinction between hyperscale and retail interconnection. While Equinix participates in hyperscale through its xScale program (e.g., Google’s deployment at SP5), its strength lies in creating dense interconnection ecosystems.
Carvalho noted that even hyperscale operators rely on Equinix for interconnection services to ensure their clients connect to the broader internet. The region’s future is hybrid, with three verticals emerging:
Hyperscale: Massive MW deployments for cloud and AI.
Edge: Smaller facilities outside metro areas to reduce latency.
Retail: Interconnection hubs that tie it all together.
Despite its growth, the data center industry faces public perception challenges. Governments and communities often don’t understand the role data centers play in powering apps, banking, and essential services, leading to delays in permitting and power delivery.
Sasse and Carvalho agreed on the need for better industry “marketing.” Companies must educate officials and communities about the connection between data centers and economic growth, emphasizing their role in GDP and local benefits.
Though Latin America currently holds a small share of global capacity, its renewable energy, land availability, and stable ecosystem position it for rapid growth. For investors and IT professionals, success will depend on navigating regulatory complexities and power constraints. Those who embrace the hybrid mix of interconnection and scale will see the region’s growth in the next five years outpace the last two decades.
Brazil’s Regulatory Tipping PointPower Challenges and Opportunities in MexicoThe Ecosystem AdvantageFixing the Industry’s Marketing ProblemConclusion

In a recent HawkTalk conversation, Donny Gunadi, Senior Insight Analyst for APAC at datacenterHawk, joined Agus Bintoro, Head of Sales for NTT Indonesia, to examine Jakarta's dynamic data center market. They discussed how a global player like NTT is adapting to a fast-commoditizing landscape, handling new competition, and driving sustained growth. The conversation emphasized NTT's strategy, evolving enterprise and hyperscale demands, and Indonesia's importance in Southeast Asia’s digital infrastructure ecosystem.
As aggressive players enter Jakarta, NTT avoids competing solely on price. Instead, the company executes an adaptive strategy that maximizes global assets and prioritizes high-margin opportunities. Bintoro shared how NTT leverages its "dual-core strength" as a global network provider and data center operator. By integrating services like its global IP network and the new Apricot subsea cable, NTT turns its data centers into essential gateways for international and regional connectivity, offering clients more than just colocation.
NTT's focus in Indonesia is a "balanced mix" of enterprise and hyperscale clients. Hyperscalers drive growth and validate capital investment, while enterprise customers deliver higher margins and demand complex solutions like disaster recovery and IT integration. NTT’s comprehensive portfolio meets these needs, supporting financial stability and market expansion.
Looking to 2026, NTT sees Indonesia’s market as "hypergrowth with specialization." The focus is moving from simply having capacity to having the right capacity. Demand from hyperscalers continues to climb, and AI is driving higher power densities, challenging traditional data center designs. Bintoro noted key hurdles, including securing large-scale, reliable green power and closing the skilled talent gap as the market expands.
Compared to its neighbors, Indonesia stands out for long-term investment. While Singapore is a premium hub with limited capacity and Malaysia struggles with power issues, Indonesia offers sustainable growth. Bintoro highlighted the country’s large, young, and digitizing population and robust economy. NTT sees Indonesia maturing faster than Thailand and presenting better long-term opportunities than Malaysia, making it strategic for digital infrastructure investors.
The conversation with Agus Bintoro illustrates how NTT is thriving in one of Asia’s fastest-growing data center markets. By focusing on value, balancing its client base, and preparing for high-density demand, NTT is solidifying its role in Indonesia’s digital future. For investors and operators, success in this market will depend on delivering resilient, interconnected infrastructure solutions, as Indonesia charts a path of long-term, sustainable growth in the region.
Adapting Through Value, Not PriceBalancing Enterprise and Hyperscale DemandsNavigating Indonesia’s Hypergrowth and ChallengesIndonesia’s Sustainable Future in Southeast Asia

In today’s rapidly changing digital world, data centers are evolving to meet the massive demands of artificial intelligence. In this discussion, Donny Gunadi, Senior Research Analyst APAC at datacenterhawk, sits down with Bass Salah, Joint CEO of ResetData, at Chifley Tower in Sydney. Their discussion delves into the rise of "AI factories," the importance of sovereign cloud capabilities, and how sustainable high-density computing is shaping the future.What Are AI Factories?AI factories are reshaping the concept of data centers. Salah explains how ResetData views AI factories as vertically integrated systems that combine GPU infrastructure, software, and physical facilities to handle complex, parallel processing tasks. Unlike traditional CPU-based systems that process data sequentially, AI factories utilize interconnected GPU clusters to solve multi-layered problems simultaneously, offering unprecedented speeds for data processing. This shift represents a fundamental change in digital infrastructure, enabling businesses to unlock new efficiencies and capabilities.Liquid Cooling: The Key to High-Density EfficiencyAs computing power increases, so does heat generation. Salah highlights how ResetData pioneered liquid immersion cooling to address this challenge. By submerging hardware in dielectric fluid, this approach delivers superior thermal performance compared to outdated air-cooling methods. Liquid cooling not only supports modern GPUs but also improves power usage effectiveness (PUE) and reduces operational costs, making it a cornerstone of ResetData’s infrastructure strategy.The Role of Sovereign CloudData privacy and jurisdiction are becoming critical in today’s landscape. Salah emphasizes the strategic value of sovereign cloud providers like ResetData, which ensure data remains within national borders. With 50% ownership by Century Capital Group (ASX: 200) and 50% by Australian partners, ResetData guarantees data sovereignty, appealing to industries with sensitive IP or regulatory requirements. Rather than competing with major hyperscalers like AWS and Microsoft, sovereign cloud solutions serve as a secure, local alternative for specialized workloads.Sustainability as a PriorityFor ResetData, sustainability goes beyond meeting regulatory requirements - it’s an operational necessity. Salah explains their focus on both economic and environmental sustainability. ResetData facilities use zero wastewater and repurpose existing buildings, addressing the embodied carbon issue while conserving resources like water, which is becoming as critical as power in drought-prone regions. This dual focus positions ResetData as a leader in creating sustainable infrastructure for the long term.Why Businesses Can’t Afford to Wait on AISalah discusses the urgency of adopting AI now rather than waiting for the technology to mature. He explains how businesses that leverage AI to improve efficiency will gain a competitive edge. For example, if an accounting firm uses AI to cut a two-hour task to one, it can double its output or reduce costs, gaining market share. Waiting too long to adopt AI means falling behind competitors who have already optimized their workflows, making it increasingly difficult to catch up.Final ThoughtsThis discussion highlights the transformative nature of AI on digital infrastructure. From liquid cooling and AI factories to the critical importance of sovereign cloud capabilities, the industry is shifting toward higher density, sustainability, and efficiency. For companies, the takeaway is clear: investing in infrastructure now, rather than later, is crucial for staying competitive in an AI-driven world.

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As we enter 2026, the global data center industry is at a critical turning point. Historic absorption rates over the past year have been driven by the growing demand for AI infrastructure. In this episode of the Data Center Hawk podcast, Founder and CEO David Liggitt joins regional leaders Ed Socia (North America), David Sandars (EMEA), Dedi Iskandar (APAC), and Steve Sasse (Latin America) to analyze key trends and predict how power dynamics, emerging markets, and hyperscale strategies will shape the industry in the year ahead.
North America leads in data center development, but the growth is shifting geographically. Regional Director Ed Socia highlights a movement toward nontraditional markets like North Dakota, Wyoming, and Missouri, driven by available power and the need to avoid community pushback. AI providers are building large, master-planned campuses in these areas.
Regions like West Texas are seeing plans for massive 1-gigawatt projects, although network latency keeps traditional hubs like Chicago and Northwest Indiana relevant. Additionally, smaller enterprise demand (20-50MW) is carving a niche alongside hyperscale developments, signaling diverse growth within the market.
In Europe, the Middle East, and Africa, diversification is the name of the game. Regional Director David Sandars notes a slowdown in speculative building, with some projects delayed until 2026 or 2027. Interest is expanding beyond traditional FLAP-D markets to areas like Zaragoza, Spain, and parts of Eastern Europe, including Romania, Hungary, and the Czech Republic.
The Middle East is emerging as a major AI hub, with plans for multi-gigawatt campuses. Its strategic location between Europe and Asia is attracting investments not only from western hyperscalers but also from countries like South Korea, keen to support their tech industries.
The Asia-Pacific market has doubled in size from 5GW to 10GW in just two years. Regional Director Dedi Iskandar highlights that while Japan and Australia remain key hubs, power constraints in major cities like Tokyo are pushing developments into tier-two markets.
Johor in Southeast Asia has quickly become a 2GW market, while India’s rapid growth positions it as a future leader, potentially surpassing Tokyo. Unlike Europe’s cautious pace, APAC’s AI companies demand fast delivery, often seeking 100MW+ capacities within just 3 to 6 months. Emerging hotspots like Melbourne, Chennai, Bangkok, and Vietnam are reaping the benefits, with governments offering incentives to attract digital infrastructure.
In Latin America, Chinese cloud operators such as Tencent, Alibaba, and Huawei have stepped in as US providers focus more domestically. Regional Director Steve Sasse notes expansion across Mexico, Brazil, Chile, and Peru.
Looking ahead, the region is leveraging its renewable energy resources to attract AI-focused hyperscale investments. Brazil leads the market, accounting for nearly 40% of the economic base and introducing legislation to reduce GPU chip import taxes. Meanwhile, Argentina is gaining attention for its vast natural gas reserves, positioning itself as a potential dark horse for on-site power generation.
The global demand for data center capacity shows no sign of slowing, but how that demand is met varies greatly by region. From gigawatt-scale campuses in West Texas and AI hubs in the Middle East to APAC’s rapid tier-two growth and LATAM’s renewable energy strategies, the industry is evolving to address power constraints and shifting needs.
For investors and IT professionals, understanding these regional trends will be critical to navigating and capitalizing on the next wave of digital infrastructure growth in 2026.

David Liggitt, CEO of datacenterHawk, recently spoke with Tahir Gok, MENA Lead and Senior Analyst, about the dynamic growth of the Middle East’s data center industry. Their discussion highlighted the region's evolution from a telco-driven market to a global hub for AI and hyperscale development, examining key drivers, market dynamics, and future trends across the UAE, Saudi Arabia, and other emerging markets.
The Middle East data center market has transformed significantly over the last five years. Initially dominated by telco-owned infrastructure, the entry of hyperscalers like AWS and Microsoft around 2020 marked a turning point. This shift mirrors global trends as the region moves toward a hyperscale-focused ecosystem, positioning itself for rapid growth.
The conversation highlighted AI as the leading catalyst for growth. The UAE and Saudi Arabia are spearheading this transformation with ambitious sovereign AI strategies, fueling unprecedented investment in digital infrastructure. For instance, Microsoft is shipping thousands of Nvidia chips to the UAE, while G42 is building a five-gigawatt compute campus. In total, $7.9 billion has been committed to regional AI-driven expansion. Challenges such as power availability, export licensing, and GPU delivery timelines remain key constraints, but the momentum is undeniable.
Although AI leads the charge, strategies vary by location. The UAE and Saudi Arabia are prioritizing native AI capacity, sometimes bypassing traditional hyperscale builds. Tier 2 markets, such as Qatar, Oman, and Turkey, are growing more conservatively, driven by connectivity and retail cloud demand. Qatar, for example, has a vacancy rate of just 1.17%, thanks to government-led initiatives, while Turkey attracts semiconductor investments through programs like "HIT 30." Oman leverages new subsea cable landings to boost its strategic importance. For operators, understanding these localized dynamics is essential, as regulatory factors often favor ground leases and build-to-suit projects over freehold land transactions.
The region's expansion plans hinge on securing sustainable and scalable power. Both the UAE and Saudi Arabia are exploring solar and natural gas plants to meet the significant energy demands of AI deployments. Tahir Gok emphasized that reducing power costs by up to 50% will be crucial to making large-scale AI projects economically viable. Efficient power infrastructure will be the cornerstone of the region’s growth over the next three to five years.
This discussion underscores how the Middle East has transitioned from an emerging market to a key player in global digital infrastructure. With bold AI goals and massive capital investments, the region is scaling data center capacity at an unprecedented pace. However, success will depend on navigating unique regional strategies, regulatory environments, and power constraints. The trends explored in this conversation will undoubtedly shape the future of data centers, both in the Middle East and worldwide.
Rapid Transformation: From Telco to HyperscaleAI Driving ExpansionRegional Market DynamicsFocus on Power and SustainabilityA Global Digital Hub