H2 2025 marked South America’s shift from announcement-heavy ambition to execution reality, as power access, permitting, and capital discipline began separating viable AI campuses from stalled plans.
"Execution triage" is the right frame, the region's problem has stopped being demand and become interconnection queues and transformer lead times. The part I think is still underpriced is that Brazil's advantage compounds precisely because the binding constraint went physical: cheap clean electrons plus water plus minerals is a stack no amount of capex conjures elsewhere. I made the broader case for LATAM owning the physical layer here: https://thiagopedicosaragiotto.substack.com/p/the-physical-layer-of-ai-why-latam
Brazil has a major advantage in the LATAM region given its large supply of renewable energy, combination of enterprise and hyperscale demand, and proximity to the US.
"Execution triage" is the right frame, the region's problem has stopped being demand and become interconnection queues and transformer lead times. The part I think is still underpriced is that Brazil's advantage compounds precisely because the binding constraint went physical: cheap clean electrons plus water plus minerals is a stack no amount of capex conjures elsewhere. I made the broader case for LATAM owning the physical layer here: https://thiagopedicosaragiotto.substack.com/p/the-physical-layer-of-ai-why-latam
Brazil has a major advantage in the LATAM region given its large supply of renewable energy, combination of enterprise and hyperscale demand, and proximity to the US.