In case you’re searching for a snapshot of the Latin American telecommunications panorama going into 2026, look no additional than what is going on on in Brazil. As the biggest regional financial system, Brazil’s telecom market influences the route of regional markets—and there is a lot to pay attention to.
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 find out about:
- The speedy progress of information facilities throughout Brazil, with a deal with rising hubs, and driving forces resembling dependable power, authorities incentives, and subsea cable proximity.
- Value 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 areas
In response to our Knowledge Middle Analysis Service platform, Brazil is at the moment residence to 112 information facilities. However that quantity is shortly rising, with a spread of corporations trying to open new services within the close to future.
Map of present information facilities in Brazil. Supply: TeleGeography’s Knowledge Middle Analysis Service
Most of the deliberate information facilities in Brazil will probably be constructed in a well-recognized location: São Paulo. The higher metropolitan space of São Paulo has traditionally served as a hub for information facilities—and associated connectivity—inside Brazil and Latin America. We anticipate 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 number of the anticipated progress within the nation.
Outdoors of São Paulo, Fortaleza has emerged as an more and more engaging location for brand new information facilities to be constructed. Contacts we spoke with observe that a number of components assist clarify this, together with a dependable power 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 response to TeleGeography’s submarine cable map, this might be the primary subsea system to reach in Porto Alegre, probably sparking new funding in information facilities all through the encircling space.
Different Brazilian cities we’ve got heard mentioned embrace Recife, Natal, Manaus, and Brasilia. When evaluating potential websites for community growth, components like power availability, setting influence, and proximity to submarine cable touchdown stations.
Transport and IP value erosion
One other matter we’ve got been being attentive to is a well-recognized 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 robust competitors and ample provide have pushed costs down in recent times.
Weighted Median 100 Gbps Wavelength Costs & CAGR Value Decline on International Routes
Within the above determine, you’ll be able to 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 purple 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 not too long ago heard much more aggressive quotes, with some contacts reporting as little as $5,000 for 100 Gbps on this predominant route between Brazil and the USA.
Just like transport, IP transit costs have additionally turn out to be extraordinarily aggressive in Brazil. We sometimes hear carriers report flat pricing approaches in Brazil’s prime three connectivity hubs of São Paulo, Rio de Janeiro, and Fortaleza. And throughout all these markets, we’ve got been advised that costs have fallen as little as $0.10/Mbps for a ten GigE port.
In response to our IP Transit Pricing Database, the weighted median value for a ten GigE port in São Paulo was $0.30/Mbps in Q2 2025. Examine 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 price 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 developing. Because it pertains to community infrastructure, two predominant themes stand out:
- Submarine cables
- Satellites
Extra particularly, business stakeholders are discussing choices for numerous routing of subsea methods and alternate options to U.S.-based satellite tv for pc connectivity options.
Map of present and deliberate submarine cable methods 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 methods supply 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 nations it connects to, and learn how to mitigate any potential danger.
Just like subsea cables, these desirous about satellite tv for pc connectivity have more and more requested what choices exist that help a given nation’s targets of information sovereignty. A lot of this consideration is directed towards Low Earth Orbit (LEO) satellites, the place the one energetic industrial constellations are U.S.-based Starlink and Eutelsat’s OneWeb, a European firm.
A standard dialog we heard concerning satellites begins with the query, “how can we join the unconnected?” The reply to this query, by way of information safety and infrastructure administration, can turn out to be difficult in lots of elements of the world, together with in Brazil.
Map of nations the place Starlink providers are at the moment commercially accessible. Supply: TeleGeography’s GlobalComms Database.
In search of extra information?
You’ll be able to see the entire unique information included on this evaluation and rather more in TeleGeography’s analysis platforms. Study extra concerning the instruments we used on this dialogue:
Knowledge Middle Analysis Service
Wavelengths Pricing Database
IP Transit Pricing Database
GlobalComms Database
