Market Overview
The Latin America cloud computing market size was valued at USD 53.85 Billion in 2025 and is projected to reach USD 184.85 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 14.69% from 2026 to 2034. The market growth is driven by the shift towards digital transformation, increased adoption of scalable cloud solutions, and strategic investments by hyperscale providers in regional data centers. Enhanced internet connectivity and government frameworks for data security further propel the 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 market size was USD 53.85 Billion in 2025, with a projected CAGR of 14.69% from 2026 to 2034.
- Infrastructure as a Service (IaaS) dominates the market with a 38% share in 2025, driven by migration of on-premises workloads.
- Data storage and backup workloads lead with a 25% share, reflecting enterprises’ need for secure, scalable storage.
- Public cloud is the largest deployment mode, commanding a 52% market share in 2025 due to cost-effectiveness and scalability.
- Large enterprises represent 62% of the market in 2025, highlighting their advanced digital transformation initiatives.
- BFSI accounts for 24% market share, as financial institutions prioritize modernization and regulatory compliance.
- Brazil is the biggest regional market with a 38% share, due to its mature digital ecosystem and significant infrastructure investments.
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Market Growth Factors
The effect of the growing rollout of digital transformation programs and government-led cloud computing initiatives is driving the Latin America cloud computing market growth․ The national cloud computing initiatives in Latin America encourage the use of advanced computing capabilities for businesses at lower capital costs․ This initiative also includes the Brazilian Mission 4 program․ This program focuses on cloud computing, artificial intelligence, big data and the Internet of Things․ This is focused on enabling key regulatory frameworks, financial incentives and public-private partnerships to accelerate adoption in both sectors․
A second major driver is the hyperscale expansion by the world's largest cloud service providers, who are investing in data centers in Brazil, Mexico, Chile, Colombia and Uruguay, improving service availability and latency while complying with local data sovereignty laws․ Large investments include Google's US$850 million announcement in August 2024 in Uruguay and Amazon Web Services' US$1․8 billion announcement in September 2024 in Brazil․ These investments were made to support the region's mature and competitive ecosystem, driving improved customer service and expanding the regional market․
Rising internet penetration and connectivity in the region are expected to benefit the cloud market․ The growth of internet access, mobile broadband, and fifth-generation wireless networks acts as a foundation for the adoption of cloud services by all business sizes․ The expansion of fiber networks and edge computing infrastructure democratizes services for both urban and rural settings․ Investments by telecommunications companies to modernize their infrastructure democratizes access to the cloud, enabling enterprise-grade cloud for organizations across sectors and leading to more inclusive market development․
Market Segmentation
Service
- Infrastructure as a Service (IaaS): Captures 38% market share in 2025, serving as the foundational cloud layer enabling virtualized computing resources such as servers, storage, and networking, supporting rapid scalability and operational agility. Major enterprises in banking, telecommunications, and retail increasingly adopt IaaS for digital transformation.
- Platform as a Service (PaaS): Included as a service type but no specific data found.
- Software as a Service (SaaS): Included as a service type but no specific data found.
Workload
- Data Storage and Backup: Leads with 25% share in 2025, addressing enterprise priorities for secure, accessible, and scalable storage. Cloud storage solutions enable geographic redundancy, disaster recovery, and compliance with data protection regulations such as Brazil's General Personal Data Protection Law.
- Application Development and Testing: Included as workload type but no specific data found.
- Analytics and Reporting: Included as workload type but no specific data found.
- Integration and Orchestration: Included as workload type but no specific data found.
- Resource Management: Included as workload type but no specific data found.
- Others: Included as workload type but no specific data found.
Deployment Mode
- Public Cloud: Holds 52% market share in 2025. Its cost-effectiveness, pay-as-you-go model, and scalability attract businesses, especially SMEs. Government initiatives promote public cloud adoption in the public sector. Major providers continuously expand regional infrastructure, enhancing data sovereignty and reducing latency.
- Private Cloud: Mentioned but no specific data found.
- Hybrid Cloud: Mentioned but no specific data found.
Organization Size
- Large Enterprise: Dominant with 62% share in 2025, driven by substantial budgets, complex needs, and strategic cloud adoption for multi-cloud and hybrid environments. Enterprises utilize AI-driven analytics and customer experience tools extensively.
- Small and Medium Enterprise: Mentioned but no specific data found.
Vertical
- Banking, Financial Services, and Insurance (BFSI): Leading sector with 24% share in 2025, driven by digital transformation demands, regulatory compliance, and AI-enabled services for fraud detection and customer analytics.
- IT and Telecom: Mentioned but no specific data found.
- Retail and Consumer Goods: Mentioned but no specific data found.
- Energy and Utilities: Mentioned but no specific data found.
- Healthcare: Mentioned but no specific data found.
- Media and Entertainment: Mentioned but no specific data found.
- Government and Public Sector: Mentioned but no specific data found.
- Others: Mentioned but no specific data found.
Region
- Brazil: Largest regional market with 38% share in 2025. Brazil's mature digital ecosystem, major data center hubs like São Paulo, and substantial hyperscale infrastructure investments bolster its leadership. Amazon Web Services' USD 1.8 billion expansion further strengthens Brazil’s cloud dominance.
- Mexico: Mentioned but no specific data found.
- Argentina: Mentioned but no specific data found.
- Colombia: Mentioned but no specific data found.
- Chile: Mentioned but no specific data found.
- Peru: Mentioned but no specific data found.
- Others: Mentioned but no specific data found.
Regional Insights
Brazil is the dominant country in the Latin America cloud computing market, accounting for 38% of the market share in 2025. Its leadership is attributed to a mature digital ecosystem, concentrated hyperscale infrastructure investments, and strong government support for digital transformation. São Paulo acts as a key data center hub, supported by major providers like Amazon Web Services, Microsoft, and Google with significant infrastructure and service presence.
Recent Developments & News
In May 2025, Pátria Investimentos launched Omnia, a USD 1 Billion AI-ready hyperscale data center platform spanning Brazil, Mexico, and Chile, exclusively powered by renewable energy, targeting global technology companies amid surging cloud and AI demand in Latin America. In February 2025, Alibaba Cloud opened its first data center in Mexico, expanding its network to 87 availability zones across 29 regions globally, strengthening its position as a competitive cloud service provider in Mexico’s growing market.
Key Players
- Amazon Web Services
- Microsoft Azure
- Google Cloud
- Alibaba Cloud
- Pátria Investimentos
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