Data Centers in the Age of AI: Challenges and Opportunities in Latin America

09/04/2025

By Tomas Lynch, Senior Network Architect at Vultr

In recent years, artificial intelligence (AI) has revolutionized the technology industry, generating a significant impact on digital infrastructure. With the growth of GPU-based services and the rising demand for data processing, data centers in Latin America face new challenges and opportunities.

By 2030, 50% of data centers’ physical infrastructure is expected to be dedicated to AI services, marking a radical shift in the design and operation of these facilities. This evolution redefines not only data center architecture but also their strategic role in the region’s digital transformation.

During LACNIC 43, the panel on “Data Centers in the Age of AI: Challenges and Opportunities” will bring together industry experts to analyze the region’s main challenges and discuss strategies for the future. Digitalization has driven a significant expansion of data centers in Latin America. However, this growth faces challenges such as high energy costs, the absence of standardized regulations, and connectivity limitations in certain areas. Despite these barriers, interest in the region continues to grow, while global companies are investing in new data centers to meet local demand and offer low-latency services.

AI has increased the need for high-performance processors, triggering exponential growth in the use of GPUs. This has led to higher energy requirements and the need for more efficient cooling systems to manage the heat generated by this equipment. Additionally, traffic from data centers to the internet is expected to grow exponentially, posing challenges for network capacity and interconnection between providers. To address this situation, data center providers are adopting innovative strategies such as optimizing data center design, using renewable energy, and implementing advanced cooling techniques to improve operational efficiency and reduce environmental impact.

One of the major challenges for providers is expanding and building new facilities in the region. Factors such as land availability, a stable power supply, and operational costs play a key role in these decisions. From a user’s perspective, choosing a data center involves considering security, redundancy, connectivity, and regulatory compliance. Additionally, interconnection with other data centers and providers has become essential for ensuring a resilient and scalable infrastructure capable of supporting the accelerated growth of data traffic and the demands of the digital ecosystem.

Over the next five to ten years, the data center industry in Latin America is expected to continue evolving with a focus on energy efficiency and sustainability. The use of artificial intelligence to optimize resource management and increased interconnection between providers will be major trends. Furthermore, the industry could also benefit from clearer regulations and government support, two factors that would encourage the development of a more robust digital infrastructure across the region.

The panel that will be held at LACNIC 43 on 6 May will offer a comprehensive overview of the challenges and opportunities faced by the data center industry in Latin America. The convergence of AI, sustainability, and connectivity will be key to the future of the sector. We invite everyone to participate in this discussion and share your views about growth and innovation in the region’s data centers.