Milbank LLP hosted a panel discussion in São Paulo on May 6, “Global Data Center Finance: Structures, Trends and Brazilian Opportunities,” highlighting the evolving global data center finance landscape and growing opportunities in Brazil.
Global Project, Energy and Infrastructure Finance partner Thomas Sines and special counsel Louise Toledo Farias were joined by Fernando Jaeger of ODATA, Thomaz Dreifuss of BNP Paribas and Ivan Hong of Casa dos Ventos for a discussion on the rapid acceleration of global data center demand, driven by hyperscaler expansion, AI adoption and continued investment in digital infrastructure. The panel explored financing structures, due diligence considerations and the factors positioning Brazil as a key growth market for data center development in Latin America.
The speakers highlighted Brazil’s competitive advantages, including abundant renewable energy resources, attractive power purchase agreement structures, scalable land availability for hyperscale campuses and strengthening connectivity to Europe and North America through subsea cable infrastructure. The discussion also examined the evolution of the financing market, including the shift from traditional commercial real estate lending toward infrastructure and project finance models, as well as key challenges facing sponsors and investors, such as power infrastructure limitations, tax complexity, permitting requirements and foreign exchange risk.
