Local DC Bets on AI with New Brazilian Data Center and Regional Hub Plans
February 4, 2026
Brazil's data center landscape is evolving beyond traditional colocation, driven by the explosive demand for artificial intelligence (AI) processing and the need for data sovereignty. Local DC, a homegrown operator, is positioning itself at this intersection, announcing a significant investment to modernize infrastructure specifically for AI workloads while charting a course for a uniquely Brazilian expansion.
The company has acquired a facility from Banco Itaú in Campinas, São Paulo state, and is investing US$20 million to retrofit it into a core AI data center. The site encompasses 10,000 square meters with an initial power capacity of 6 megawatts (MW), scalable to 12MW, and can support up to 1,200 racks. CEO Wagner Rapchan explained the strategic vision behind the move, stating the company aims to go beyond serving cloud giants. "The data center infrastructure market was already quite dense and competitive," he noted, leading Local DC to focus on developing and hosting customized, private AI solutions for sectors like public security and smart cities.
This strategy is a direct response to Brazil's growing demand for local AI processing, fueled by data protection laws like the LGPD and tax incentives such as the Redata regime. "It is starting to make sense to bring things here in order to carry out machine learning in Brazil," Rapchan said. The Campinas retrofit is designed to multiply power density tenfold compared to conventional facilities to accommodate state-of-the-art AI hardware like GPUs. The company's model prioritizes providing space for private AI clusters with advisory support, rather than traditional colocation or disaster recovery services. The total investment for the Campinas unit, including acquisition and modernization, is estimated between 200 million and 300 million Brazilian reais, financed with partner capital.
Looking ahead, Local DC plans a triangulated national expansion over the next 24 to 36 months. The strategy involves establishing regional hubs beyond the saturated markets of São Paulo and Rio de Janeiro. Key locations include Rio Grande do Norte, to serve the North and Northeast, and Mato Grosso, targeting the robust agribusiness sector. "Our proposal is to operate in niches, prioritizing regional and customized solutions, without seeking to compete directly with hyperscalers," Rapchan emphasized. The expansion will be funded primarily through equity, though public credit lines like BNDES are not ruled out for ventures into high-potential, less-explored regions.
Source: bnamericas
