Tecto plans new Brazil data centers, part of $2 billion investment

By Luciana Magalhaes and Leticia Fucuchima

SAO PAULO, April 8 (Reuters) - Tecto Data Centers, backed by BTG Pactual's funds, is set to invest $2 billion through 2028, including the construction of five data centers in Brazil, the company told Reuters, adding to a wave of new data centers in Latin America's No. 1 economy.

Brazil is working to position itself as a global hub for large-scale data centers, leveraging cheap and abundant renewable energy and water resources to lure major investments from U.S. firms and China's TikTok.

While the government is struggling to revive a tax incentive program called Redata, Tecto Chief Revenue Officer Tito Costa said the incentives would be helpful but not essential to the company's investment plans.

He said part of Tecto's business plan is to offer enterprise services in untapped corners of Brazil.

"Today, companies are often forced to go to Sao Paulo or Rio de Janeiro, the country's main data center hubs, in order to access top-tier services. We see this as a very good opportunity, it helps to justify part of these investments outside Sao Paulo," said Costa.

The company plans a data center with 20 megawatts of capacity in the southern city of Porto Alegre, along with a 200 MW facility in Santana do Parnaiba, in the Sao Paulo metro area.

Those new data centers, plus three more to be announced, will join a portfolio of seven in operation, in locations ranging from Rio de Janeiro to Fortaleza in northeast Brazil and Barranquilla on the Colombian coast.

The investments come after Tecto split last year from telecom infrastructure firm V.Tal, a sister firm also backed by BTG's funds, which operates 26,000 kilometers of submarine cable and 450,000 kilometers of land network.