I Squared Capital has agreed to acquire Elea Data Centers, marking a significant expansion of its digital infrastructure presence in Latin America. The transaction gives the global infrastructure investment manager access to one of Brazil’s largest carrier-neutral data center platforms. The move also positions I Squared to support rising demand for cloud, artificial intelligence, and high-density computing capacity across the country.
Strategic Expansion in Brazil
Elea operates nine interconnected data center campuses across Brazil, including key locations in São Paulo, Rio de Janeiro, and Brasília. Its network serves enterprise clients and hyperscale customers, supported by a national footprint and a substantial pipeline of future capacity. The company has more than 300MW of powered land available and over 1GW currently under development, requiring more than US$10 billion in capital to deliver.
Growing Demand for Digital Infrastructure
Brazil is the largest data center market in Latin America and is increasingly viewed as a strategic hub for digital infrastructure. The country has more than 180 million internet users, creating strong demand for cloud storage, local computing, AI inference, and advanced training workloads. Although demand is accelerating, the Brazilian market remains less developed than mature global data center markets, creating room for further investment and expansion.
Focus on AI and Renewable Power
I Squared’s investment is expected to support Elea’s expansion plans and accelerate the development of AI-ready infrastructure in Brazil. A major part of the opportunity is tied to access to large-scale renewable power, which is becoming a critical requirement for energy-intensive data center operations. Elea’s Rio AI City project, described as a multi-gigawatt AI infrastructure development, is expected to play a central role in the platform’s long-term growth strategy.
Leadership Perspective and Market Position
Gautam Bhandari, Chief Investment Officer at I Squared Capital, said the acquisition offers a strong opportunity to build a scaled digital infrastructure platform in one of the world’s fastest-growing data center markets. He noted that Elea combines a national colocation network, well-positioned powered land, and a management team with experience in developing and operating large-scale assets. Alessandro Lombardi, Elea’s President and Founder, said Brazil’s renewable energy base gives the country a rare advantage as AI infrastructure demand becomes increasingly dependent on reliable power availability.
Sustainability and Regional Growth
Elea has positioned itself as a sustainable data center operator, using 100% renewable energy across its platform. Its business model combines local market knowledge with international operating standards, helping domestic and global customers expand their digital operations in Brazil and the wider region. I Squared will work alongside Piemonte Holding and Elea’s founder-led management team to scale the platform and pursue opportunities in Brazil’s fragmented data center market.
The acquisition strengthens I Squared Capital’s Latin American infrastructure portfolio and deepens its exposure to digital infrastructure, one of the fastest-growing segments of the market. Since 2015, the firm has invested more than US$3 billion across seven investments in Latin America, and Elea adds a major platform in a sector benefiting from cloud adoption, AI growth, and renewable energy availability. For Brazil, the deal highlights the country’s rising importance as a regional and global destination for sustainable, high-capacity data center development.