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Colombia: Latin America’s Rising Data Center Destination. Infrastructure, Connectivity, and Legal Certainty in one Jurisdiction

By: Ismael Beltran Prado / Partner at Competencia Legal

Note: Originally published in LIR China & Hong Kong Edition 10

Nueve elementos de los programas de cumplimiento en materia de competencia económica

Designed by Magnific. www.magnific.com

The global race to expand data center capacity is reshaping investment patterns. Latin America is attracting growing investor interest in data center development, with demand concentrated in Brazil, Mexico, Chile, Argentina, and Colombia. In this context, Colombia offers a compelling combination of geographic, infrastructure, and regulatory advantages.

According to ProColombia, the country ranks fifth in Latin America by number of data center facilities, behind Brazil, Chile, Mexico, and Argentina. Colombia currently has 41 data centers. In 2025, the sector reported revenues of approximately USD 2.229 million, with the United States, Mexico, and Brazil among the leading sources of investment. Global operators such as Ascenty, Equinix, Cirion Technologies, ODATA, and Data4Americas are already operating in the country.

Colombia’s location positions it as a natural regional interconnection hub. The country has 12 submarine cables, 9 of which are already operational, while 3 are under construction, including 2 expected to be completed by the fourth quarter of 2026. Internet access is also competitively priced. According to Best Broadband Deals (2024), Colombia ranks second in the Americas for the lowest average broadband price, at USD 20.47.

Approximately 73% of Colombia’s electricity generation comes from hydropower (LowCarbonPower, 2025), providing a low-carbon baseline aligned with the sustainability requirements of global hyperscalers. Markets with a high share of renewable energy—including Colombia—may therefore become increasingly attractive for future data center investment.

In Colombia, the protection of personal data is recognized as a fundamental right, underscoring the importance of data protection compliance for investors considering data center projects in the country. For investors targeting regional data processing functions, legal predictability is as important as physical infrastructure. Colombia’s personal data protection framework—primarily Law 1581 of 2012, regulated by Decree 1377 of 2013 and enforced by the Superintendence of Industry and Commerce (SIC)—places the country among the more mature regulatory regimes in the region.

In addition, under Colombia’s data protection framework, the SIC has recognized several jurisdictions as providing adequate levels of protection for the purpose of international transfers of personal data from Colombia, including Germany, Spain, the United States, France, Mexico, Peru, and the United Kingdom, among others. Additionally, Colombia has been recognized by the Dubai International Financial Centre (DIFC) as a jurisdiction that provides an adequate level of data protection. These recognitions facilitate cross-border data transfers and are therefore relevant when assessing Colombia as a location for data center investment.

It is also worth noting that SIC takes an active approach to personal data enforcement, which requires investors to adopt appropriate legal and compliance measures. At the same time, for international investors, a stable and predictable legal framework can significantly reduce regulatory risk.

Colombia offers a platform that is already operating at scale: established market players, expanding submarine connectivity, a relatively clean energy base, affordable internet infrastructure, and a consolidated legal framework. The fundamentals are in place, and the window for early positioning remains open.

 

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