Digital technologies have transformed the way we live, work and play over the last few decades. We’ve now entered an intelligent age defined by the rise of AI, with its enormous promise for providing deeper insights and greater efficiency in everything from manufacturing to healthcare diagnoses to entertainment.
The rapid advancement of intelligent digital technologies, enabled by high-speed connectivity and IoT sensors, requires foundational physical infrastructure that’s often invisible to users. Cutting-edge technologies are also powered by people—skilled technicians who design and operate servers, storage devices, network cables and devices, processing chips, power and cooling equipment, and much more.
This year, we’re exploring areas of the world that are making unique contributions to the intelligent age—places like London and Manchester, Washington, DC, and Culpeper, Sydney and Melbourne, and Milan. Essential physical infrastructure and people come together in these locations to drive progress and enable a tech-powered future. Brazil is another such place. As the largest country in Latin America by land area, as well as the largest economy in its region, Brazil has been a leader in driving innovation and tech leadership. The country has the fifth largest digital population in the world[1] and is ranked second in daily time users spend online.[2] In addition, 84.5% of Brazilians prefer to use mobile apps to make purchases, which is 53% higher than the global average.[3] With a population of early-adopters who are so open to new technologies, it’s only natural that the country rapidly carved out its role as a connector of Latin America to the global digital economy. São Paulo and Rio de Janeiro, Brazil’s two largest cities, are key technology hubs connecting South America to Central and North America, Europe and Africa via submarine cables.
Brazil: The digital transformation and AI leader for Latin America
The Brazilian government’s investments in digital transformation and AI have resulted in a steadily growing digital economy. In 2021, the Brazilian AI Strategy (EBIA) was launched, followed by the National Plan for AI in 2024, allocating $4 billion USD of investment in AI infrastructure and development.[4] More recently, the Brazilian government is preparing to launch a new data center framework to attract more investment to Brazil and expand the country’s digital infrastructure. The National Data Center Policy, scheduled to be launched in May 2025, should provide tax incentives, legal security and specific rules for the sector.[5] As a result of these initiatives, Brazil now serves as an entry point for major clouds and digital technologies coming into Latin America.
Homegrown AI companies offering everything from AI-powered chatbots to online banking solutions to generative AI-based corporate learning tools have been launched in Brazil. And numerous organizations across industries are integrating AI into their products and services. As the AI boom continues, the demand for energy to power high-density data centers is growing. In 2022, roughly 88% of Brazil’s electricity generation came from renewable sources, primarily hydropower, wind and solar.[6] Because of the abundance of available renewable energy, Brazil’s AI market is expected to grow substantially this decade. With its renewable energy matrix, Brazil offers unique promise for helping businesses power their AI workloads sustainably.
São Paulo: Brazil’s tech capital
Brazil’s largest city by population, São Paulo, is the nation’s tech powerhouse, home to 60% of Brazil’s startups. With such a thriving startup culture, the city attracts a strong venture capital presence, including 83% of Brazil’s unicorns (startups valued at more than $1 billion USD).[7] Its tech ecosystem is mature, diverse and internationally connected.
As a major cosmopolitan business hub, São Paulo has a formal, fast-paced business culture. It offers simplified business registration, making it easy for companies to start and scale their business there, as well as world-class digital infrastructure and high-speed internet. The city’s GDP is larger than that of many countries.
The state of São Paulo is home to the largest tech talent pool in Latin America and includes universities like The University of São Paulo and the State University of Campinas, as well as technical schools and coding bootcamps, offering top-tier education in engineering, computer science and other technology disciplines. However, like many parts of the world, it faces a tech skills gap, and more workforce development is needed to help São Paulo capitalize on AI and renewable energy.
Rio de Janeiro: An emerging tech and innovation hub
Rio de Janeiro, Brazil’s second largest city, is about half the size of São Paulo. It’s a coastal city with a more relaxed business culture, where meetings often happen outdoors. While less formal, the business culture is highly collaborative, creative and open.
Rio de Janeiro is ascending as another major tech hub in Brazil, with a rapidly growing ecosystem. Both government initiatives and private investment are helping the coastal city position itself as an attractive location for technology providers, startups and investors. It’s also an important economic center with strengths in fintech and the creative industries. The city is investing in smart city initiatives and environmental technology. During the opening of Web Summit Rio 2025, the city government officially launched the “Rio AI City” project, which aims to transform Rio de Janeiro into the largest data center hub in Latin America and one of the ten largest in the world.[8]
Many international companies that first entered Latin America through São Paulo have expanded to Rio de Janeiro. Both cities play an important part in the digital economy of Latin America.
Let’s take a closer look at two areas where technology and people are collaborating in Brazil to enable the intelligent age: agricultural technology (agritech) and financial technology (fintech).
Brazil’s agritech transformation
Agricultural production is a significant driver of GDP in Brazil, and it is at the forefront of the digital transformation of the agriculture industry. Through the use of IoT sensors, AI and precision farming, Brazil is revolutionizing the sector. AI-driven analytics is helping agriculture companies monitor crop health and soil condition, improving yields and minimizing waste to ensure a sustainable future.
As automation, IoT and AI transform Brazil’s agritech industry, it’s important to note the importance of human capital in driving these changes. Skilled workforces, from farmers to researchers to inventors, are hard at work behind the scenes in essential roles that require creativity and complex judgment. Many of the skilled tech workers innovating in the agritech space were trained in São Paulo and Rio de Janeiro’s educational institutions. São Paulo is the leading state for agritech startups, while Rio brings a focus on sustainable agriculture.
The fintech leader of Latin America
Brazil has risen as a global leader in digital banking and payments over the last few decades, and today fintech is a prominent sector in Brazil’s technology ecosystem. Both São Paulo and Rio de Janeiro are home to hundreds of fintech startups. São Paulo hosts 13 of Brazil’s 17 fintech unicorns, while Rio has hosted major fintech and payment conferences and events.
In 2020, Brazil’s Central Bank launched an instant digital payment system, Pix, which quickly became the country’s predominant payment method. Pix offers instant transaction processing 24/7, is easy to use, free to individuals and supports Brazil’s digital inclusion efforts. In just a few years, Pix overtook cash as the most widespread form of payment, with more than 76% of Brazilians using it.[9]
As with agritech, human talent has been foundational to the innovation and growth in Brazil’s financial sector. People not only serve as creators of innovative financial solutions but also work in essential customer support, user experience design, strategy and regulatory compliance roles.
Data centers underpin Brazil’s tech landscape
None of the emerging technology innovations in Brazil would be possible without data centers. Data centers house critical infrastructure for storing and processing data, as well as exchanging value with business partners and service providers.
Equinix operates eight data centers in Brazil, five in São Paulo and three in Rio de Janeiro. Our facilities are home to a rich ecosystem of companies—from financial services providers to clouds and IT service providers. Enterprises that put infrastructure in our data centers can easily interconnect with other Equinix facilities in São Paulo or Rio de Janeiro. In fact, over 50% of the internet traffic exchange in Brazil passes through Equinix’s network.[10]
Learn more about the role of Equinix data centers in Brazil’s technology ecosystem: Download the ISG Provider Lens report
[1] Countries with the largest digital populations in the world as of February 2025, Statista.
[2] Digital 2024: 5 billion social media users, We Are Social, January 31, 2024.
[3] Apps em alta no Brasil: o que os usuários mais baixam e utilizam? CNN Brasil, September 25, 2024.
[4] Brazil Country Commercial Guide, International Trade Administration, September 19, 2024.
[5] Na disputa global por data centers, Brasil prepara incentivos fiscais, CNN Brasil, April 28, 2025.
[6] Brazil: Renewable electricity generation, International Energy Agency.
[7] The Unicorn founder roadmap: The origins of Brazil’s Unicorn founders and emerging entrepreneurial stars, Antler, October 12, 2021.
[8] Rio announces “Rio AI City” project: the largest data center hub in Latin America and one of the ten largest in the world, Prefeitura Rio, April 27, 2025.
[9] Pix is now the most used payment method in Brazil, Central Bank of Brazil, January 3, 2025.
[10] Private/Hybrid Cloud Data Center Services, ISG Provider Lens, June 2024.