Investment firm I Squared Capital recently announced its acquisition of a majority stake in Elea Data Centers, a significant move expected to expedite the Brazilian digital infrastructure operator’s expansion plans. This acquisition aims to bolster Elea’s capabilities as it operates nine data center campuses across Brazil, with over 300 MW of powered land and more than 1 GW currently in development. Elea is also working on an ambitious project called Rio AI City, designed to support AI infrastructure with up to 3.2 GW of renewable energy capacity.
Alessandro Lombardi, founder and chairman of Elea, expressed that the acquisition would provide the company with increased scale, long-term capital, and access to global infrastructure expertise, which is essential as the market continues to evolve. He pointed out that the demand for cloud services, colocation, and AI capabilities in Brazil is growing rapidly, often outpacing the availability of services in many areas.
While Brazil remains Elea’s primary focus due to its significant size, connectivity, and renewable energy resources, Lombardi noted a growing trend among customers seeking regional strategies rather than services confined to single countries. He emphasized Brazil’s strengthening position as a leader in digital infrastructure within Latin America, with its combination of domestic demand, connectivity, skilled workforce, and renewable energy resources making it an attractive hub for international cloud providers and hyperscalers.
Founded in 2018, Elea’s mission has been to transform Brazil’s digital landscape, initially launching its first data center in Rio de Janeiro in 2019 and expanding into São Paulo soon after. Elea is known for operating entirely on renewable energy and is dedicated to delivering efficient, low-carbon infrastructure solutions. The investment from I Squared Capital is expected to further enhance Elea’s expansion initiatives while promoting large-scale, high-density AI infrastructure development.
As the largest data center market in Latin America, Brazil’s digital infrastructure is evolving rapidly, driven by a significant user base and increasing need for cloud storage solutions. Cushman & Wakefield’s findings highlight that Brazil hosts 23 data center operators and boasts more than 1.6 GW of potential capacity. The Brazilian market’s maturity is reflected in the dominance of large players who are capable of making the substantial investments required for new initiatives.
Gautam Bhandari, Chief Investment Officer at I Squared Capital, emphasized that Elea represents a compelling opportunity to establish a well-scaled digital infrastructure platform in one of the fastest-growing data center markets globally, aligning with the firm’s broader investment strategy in Latin America.
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