Key Takeaways: Powering the Future: Data Centers at the Crossroads of Infrastructure, Energy & Privacy

World Law Group recently hosted a virtual session, Powering the Future with Data Centers, with guest speaker Roberto Miranda de Lima, Founder and CEO of Arch Capital. Below, we’ve highlighted key questions and answers from the discussion, offering practical insights on the rapid growth of data centers in Brazil and across Latin America, the challenges shaping this sector, and why it is becoming essential infrastructure for the region.

Q: Why are data centers such a focus right now?

Global data production is growing at an extraordinary rate, doubling roughly every two years. Cloud computing, artificial intelligence, and the digitalization of business are driving demand for secure facilities with round-the-clock power, connectivity, and operational resilience.

Q: What is happening in Latin America’s data center market?

Brazil leads the region, with about 429 MW of installed hyperscale capacity today. Projections show that capacity could grow sevenfold by 2032, putting Brazil on par with major European markets such as France and Germany. This growth is creating opportunities for investment and development throughout Latin America.

Q: What challenges are developers facing?

Building and operating data centers involves significant hurdles:

-Capital: Large investments are required, and attracting sufficient funding can be difficult in some jurisdictions.

-Talent: There is a limited pool of professionals experienced in designing, building, and running hyperscale facilities.

-Infrastructure: Connectivity and power distribution can limit where new projects are viable.

-Regulation and Geopolitics: Import rules, tax policies, and local data-sovereignty requirements all shape decisions on site selection and timing.

Q: How are governments supporting this growth?

Governments are beginning to offer tax incentives and regulatory adjustments to encourage investment. Brazil, for example, is exploring tax benefits for equipment imports like GPUs and has introduced rules to prevent speculative requests for large power allocations, helping ensure resources are directed toward serious projects.

Q: Will efficiency improvements reduce the need for data centers?

No. Even as processing technology becomes more efficient, the overall volume of data continues to grow. Lower costs typically enable more entrants to the market, which in turn increases demand for capacity rather than reducing it.

Q: How do sustainability and grid distribution factor into building new data centers in Brazil?

Brazil’s grid is a major advantage, with about 91% of its power coming from renewable sources. The main challenge is not generating enough power but distributing it to the right places at the right time. Developers must carefully evaluate current availability, planned upgrades, and future demand to ensure reliable energy supply for each facility.

Q: What does this mean for the region’s future?

Data centers are now considered critical infrastructure, much like power or water systems. Countries that invest in this capacity strengthen their economic resilience, meet data-sovereignty requirements, and position themselves to attract global business and technology investment in the years ahead.

The session underscored how data centers have become a cornerstone of modern infrastructure in Brazil and throughout Latin America. From renewable-driven energy advantages to the practical challenges of distribution, regulation, and talent, the insights shared highlight both the complexity and the opportunity within this fast-growing sector.

The virtual session was hosted for members by the Energy & Infrastructure, Real Estate & Construction, and Privacy & Data Protection Groups.Members:

Did you miss the session and want to listen to the recording? Check it out here!