Why Brazil is Your Key to Unlocking Business Growth in Latin America

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November 12, 2024
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By Adriano Bueno, Head of Sales - Brazil

Discover why Brazil’s growing tech industry and booming economy make it a prime destination for businesses looking to expand into Latin America.

With a booming digital economy, a thriving fintech sector, and some of the world’s heaviest internet users, Brazil has become a hotspot for businesses looking to foster innovation. Add accelerating data center growth to increased cloud adoption, and the opportunities for enterprises seeking to scale their potential are immense.

In this blog, we explore why Brazil’s unique economic and technological landscape makes it the perfect destination for businesses looking to tap into a new market – and how you can get started in less than 60 seconds.

The hub of Latin America

For businesses wanting to establish or deepen their presence in Brazil, there has never been a better time.

Not only is Brazil the most populous country in Latin America (LATAM) with 217 million residents, it’s also the world’s eighth-largest economy by GDP purchasing power. The bustling metropolis of São Paulo, with over 22 million people in its greater metropolitan area, stands as the largest city in the Southern Hemisphere.

Much like New York or London, São Paulo is a dynamic hub for business, life, and innovation. This economic powerhouse is also moving toward a cloud-native future, making Brazil an attractive location for cloud-first businesses hoping to unlock new market potential.

With growing industries and an advancing technological landscape, today the country offers a stable environment that welcomes foreign investment and fosters innovation. Key market segments include:

IT services: The Brazilian IT industry is a massive $22 billion market with a CAGR of 6%.
Fintech: Over 1,500 financial technology companies are based in Brazil, making up half of LATAM’s total. Collectively, they’re transforming how Brazilians access financial services, making it a critical industry.
Internet of Things (IoT): The IoT market continues to grow and is now valued at $15 billion, growing at a CAGR of 11%.
Public cloud: The public cloud market has exploded in Brazil, growing at a 19% CAGR and currently valued at $8 billion. Its growth is also set to skyrocket as Microsoft Azure pledges to invest $2.7 billion in Brazil’s cloud infrastructure market over the next three years, and AWS announces a $1.8 billion investment through 2034.

As businesses prepare for future innovations, from AI-ready data centers to cloud-based operations, reliable and flexible connectivity solutions have never been more critical. And as the government strengthens its regulations on data residency, global cloud and connectivity solutions have become essential to effective data management.

Sao Paulo skyline - Megaport

Technology trends and predictions

Brazil is one of the heaviest internet users of any country in the world, averaging just over nine hours online per day. It also has the second-largest Netflix subscriber base in the world, trailing only behind The United States.

Other industry trends impacting Brazil’s technology landscape include:

AI and IoT: Both markets are growing as businesses experiment with AI applications and explore IoT integrations, contributing to higher network consumption.
Connectivity across regions: Brazil’s distributed population and booming agri-tech startup environment needs reliable connectivity across urban and rural areas, beyond hubs like São Paulo, Rio, and Brasilia.
Data center growth: Brazil has seen a recent boom in data center expansions, including investments from brands like Elea, Equinix, Cirion, and Scala Data Centers, valuing the data center market at $5 billion today.
Cloud adoption: As stringent local data storage regulations accelerate the shift to the cloud and the need for cloud-first services grows across multiple industries, cloud adoption is increasing.

Slow telecommunications provisioning times have impeded the high-bandwidth, low-latency connectivity these trends demand. But now, the local connectivity landscape is about to transform.

Megaport’s expansion into Brazil

Against this backdrop of technological growth and economic stability, Megaport is excited to announce its expansion into Brazil. Brazilian clients can access rapid deployments, global connectivity speeds of up to 100 Gbps, and scalable network infrastructure via a self-service portal and API. Plus, global businesses can use Megaport to seamlessly connect to Brazil, tapping into a flourishing market.

Our initial deployment will be in São Paulo, leveraging data center partnerships with Elea, Takoda, and Equinix. Over time we’ll expand to other key cities including Rio de Janeiro, Fortaleza, and Brasilia, adding more data center partners to our ecosystem.

Key benefits of connecting with Megaport include:

Access to global cloud services and data centers: Connect directly to the world’s leading service providers from Brazil in real time, and scale your business to over 860 global locations in seconds.
Scalable network capacity: Meet growing traffic demands with our flexible connectivity underlay, provisioning connections on-demand with pay-as-you-go billing.
Virtualized network edge: Simplify the management of SD-WAN gateways, firewalls, and routing across your network with our extensive suite of end-to-end connectivity solutions.
Simplified management: Set up connections in under 60 seconds via a simple, user-friendly portal, or use our APIs to make network management even easier.

Our advanced connectivity solutions allow businesses to service increasing market demands and expand through LATAM, as well as enabling international enterprises and service providers to extend their reach into the country, offering a broader range of services powered by our high-performance network. Either way, using Megaport opens your team to plenty of possibilities that will grow your business.