Latin America Cloud Computing Market Share Analysis, Growth, and Outlook Report 2026-2034

Market Overview

The Latin America cloud computing market was valued at USD 53.85 Billion in 2025 and is expected to reach USD 184.85 Billion by 2034, expanding at a CAGR of 14.69% during 2026-2034. Growth is driven by digital transformation, adoption of scalable cloud solutions, AI and data analytics proliferation, internet penetration, and strategic hyperscaler infrastructure investments. Regulatory frameworks fostering data security enhance cloud workload migration, boosting market expansion.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Latin America Cloud Computing Market Key Takeaways

• The Latin America cloud computing market size was USD 53.85 Billion in 2025, with a CAGR of 14.69% forecasted through 2026-2034.
• Infrastructure as a Service (IaaS) leads the market with 38% share in 2025 due to enterprise migration to virtual infrastructure platforms.
• Data storage and backup workloads hold the largest share at 25% in 2025, reflecting the surge in digital data and need for secure, accessible storage.
• Public cloud dominates deployment modes with 52% market share in 2025 attributed to cost-effectiveness and scalability.
• Large enterprises hold 62% market share in 2025, driven by high digital maturity and investments in multi-cloud and hybrid strategies.
• BFSI sector leads verticals with 24% share, focusing on modernizing banking systems and regulatory compliance.
• Brazil is the largest regional market with 38% share in 2025 due to its mature digital ecosystem and concentrated cloud infrastructure investments.

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Market Growth Factors

Accelerating Digital Transformation and Government Initiatives

Cloud adoption is promoted by Latin American governments through digital transformation policies aimed at economic competitiveness. Example is Brazil's Mission 4 program, an initiative that integrates cloud computing, artificial intelligence, big data and the Internet of Things together with regulatory, financial and public-private partnerships. The national strategies recognize cloud as critical infrastructure and make coordinated investments to expedite enterprise and government uptake.

Expanding Hyperscale Data Center Infrastructure

To meet demand for high bandwith, low latency and highly reliable Cloud computing services in Latin America, major global hyperscalers are investing in local infrastructure. Google's investment of USD 850 Million for a second data center in Uruguay and Amazon Web Services' USD 1.8 Billion investment in Brazil expand coverage and reduce latency. These investments give regions a mature ecosystem and competitive prices.

Rising Internet Penetration and Digital Connectivity

Growth in internet connectivity and mobile broadband in major Latin American markets supports increased cloud computing adoption. Fiber networks, fifth generation wireless, and edge computing ease cloud access in urban and rural locations. Increased digital connectivity has enabled almost all businesses to access enterprise-grade technology and adopt cloud computing platforms.

Market Segmentation

By Service:

• Infrastructure as a Service (IaaS): Dominates with 38% market share in 2025. Enables scalable provisioning of virtualized servers, storage, and networking. Businesses rapidly scale infrastructure converting capital expenditure to operational costs. Amazon Web Services' $205 million Chile data center enhances IaaS capabilities.

By Workload:

• Data Storage and Backup: Leading workload segment at 25% share in 2025. Supports exponentially growing digital data with secure, redundant, and widely accessible cloud storage solutions. Regulatory compliance drives adoption of secure storage solutions.

By Deployment Mode:

• Public Cloud: Largest segment with 52% share in 2025. Offers cost-effective, scalable, pay-as-you-go computing resources. Mexico's Queretaro hosts Microsoft's first hyperscale cloud data center region, expanding accessibility.

By Organization Size:

• Large Enterprise: Commands 62% share in 2025. Enterprises adopt complex multi-cloud and hybrid architectures to support large-scale digital transformation. Banking, telecom, and retail sectors lead cloud spending.

By Vertical:

• BFSI: Leading vertical with 24% share in 2025. Financial institutions modernize core systems, enhance customer experience with AI analytics, and meet regulation compliance using cloud platforms.

By Region:

• Brazil: Largest regional market with 38% share in 2025. São Paulo serves as a primary data center hub with extensive infrastructure investments from Amazon Web Services, Microsoft, and Google.

Regional Insights

Brazil holds the dominant position with a 38% share of the Latin America cloud computing market in 2025, propelled by its mature digital ecosystem and substantial enterprise demand. Key investments, such as Amazon Web Services' USD 1.8 Billion expansion through 2034, combined with government initiatives and major cloud providers' data center facilities, solidify Brazil's primary hub status within the region.

Recent Developments & News

In May 2025, Pátria Investimentos launched Omnia, a USD 1 Billion AI-ready hyperscale data center platform deploying renewable energy across Brazil, Mexico, and Chile, targeting global tech firms amid surging cloud infrastructure demand. In February 2025, Alibaba Cloud opened its first data center in Mexico with 87 availability zones across 29 regions, enhancing offerings for the expanding Mexican enterprise market.

Key Players

• Amazon Web Services
• Microsoft Azure
• Google Cloud
• Alibaba Cloud
• Pátria Investimentos

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