Milbank LLP hosted a panel discussion in São Paulo on May 6, focusing on global data center finance structures, trends, and opportunities in Brazil.
The event addressed the increasing demand for data centers worldwide and examined why Brazil is becoming an important market for this sector. Panelists discussed factors such as hyperscaler expansion, artificial intelligence adoption, and ongoing investment in digital infrastructure that are driving rapid growth.
Speakers included Fernando Jaeger of ODATA, Thomaz Dreifuss of BNP Paribas, Ivan Hong of Casa dos Ventos, as well as Milbank’s global partner and special counsel. The panel reviewed financing structures used in the industry and due diligence considerations for investors. They also highlighted Brazil’s advantages like abundant renewable energy resources, attractive power purchase agreement models, scalable land availability for large campuses, and improved connectivity to Europe and North America through subsea cables.
Panelists said the financing market is evolving from traditional commercial real estate lending toward infrastructure and project finance models. They also discussed challenges such as limitations in power infrastructure, complex tax systems, permitting requirements, and foreign exchange risks facing sponsors and investors.
The discussion reflected growing interest from both local and international stakeholders looking to invest in Brazil’s expanding digital infrastructure sector.
