Brazil’s Finance Minister Fernando Haddad has urged the US to adopt a more supportive approach toward Latin America.

He highlighted the large benefits of industrial development in the region during an interview with the local outlet UOL on May 12, 2025.

Haddad also said that Brazilian President Luiz Inacio Lula da Silva supports a multilateral approach and will not favor either the US or China.

Although China has been Brazil’s largest trading partner, Haddad pointed out that the US leads in technological innovation, which is vital for Brazil’s growth.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Brazil’s data center strategy addresses a significant economic leakage

Haddad’s concern about importing 60% of data center services highlights a substantial economic opportunity for Brazil and the broader region.

The Latin America data center market is projected to double from approximately $7 billion in 2024 to over $14 billion by 2030, with a CAGR of 12.22%, creating significant economic value 1.

Brazil currently dominates this growth, holding 41% of all data center investments in Latin America, but still faces substantial dependency on foreign service providers 1.

This imbalance costs Brazil valuable economic activity, jobs, and technological sovereignty, which explains why the government is preparing tax incentives specifically targeting the sector.

By developing domestic data center capacity, Brazil can retain more value from its digital economy while building strategic infrastructure for future technology needs.

2️⃣ Brazil’s renewable energy advantage creates a unique competitive position

With over 80% of its electricity coming from renewable sources including hydro, solar, and wind, Brazil holds a significant advantage in attracting data center investments compared to many other nations.

Data centers are extremely energy-intensive, consuming 100-200 times more electricity than standard office buildings, making energy costs and sustainability critical factors for operators 2.

Brazil’s Barueri and Campinas regions have already become data center hotspots, with the sector currently consuming 0.5% of the country’s total energy demand—a figure that continues to grow rapidly 2.