SAO PAULO, Jan 8 (Reuters) - Brazil is rapidly emerging as a key hub for data centers, with billions of dollars in investments expected in the coming years. The surge is largely attributed to the exponential rise of artificial intelligence and growth constraints in larger markets in the U.S. and Europe.

Some companies investing in the sector in the country are:

ASCENTY

With 34 data centers operating or under construction in Latin America, the company is seeking a minority partner to fund further expansion, particularly in Brazil. Ascenty is controlled by global investment firm Brookfield Asset Management BAM.TO and U.S.-based Digital Realty DLR.N.

GRUPO FS

Brazilian cybersecurity firm Grupo FS is making its debut in the data center sector with plans to invest $1.8 billion ($300 million) to establish three data centers in Brazil. According to owner Alberto Leite, the country's political stability, renewable energy resources, and growing local demand are key positive factors driving this investment.

EQUINIX

Equinix, a global digital infrastructure firm, is expanding in the states of São Paulo and Rio de Janeiro, according to Eduardo Carvalho, Latin America's managing director of the company founded in Silicon Valley in 1998.

ODATA

ODATA, acquired by Aligned Data Centers in 2023, is also steadily expanding due to growing demand in Brazil. The states of Rio de Janeiro and São Paulo are key areas for investment, said Fernando Jaeger, director of new businesses. ODATA also operates data centers in Chile, Colombia and Mexico, and has recently expanded its portfolio to include the US through its acquisition by Aligned.

TECTO

Tecto, the data center business unit of V.tal, controlled by Brazilian bank BTG, announced earlier this week it acquired new land in the state of São Paulo for the construction of its hyperscale data center with total capacity of 200MW and powered by 100% renewable energy. The construction is part of Tecto's expansion strategy, which has allocated an initial investment of $1 billion for new projects. Tecto is also present in other Brazilian states and in Colombia.

ELEA

Elea Data Centers covers all major cities in Brazil, including the Rio-São Paulo axis, and operates entirely on renewable energy. Elea's data centers are distributed across the Southeast, South and Central West regions of the country.

(Reporting by Luciana Magalhaes and Leticia Fucuchima; Editing by Richard Chang)

((Luciana.NovaesMagalhaes@thomsonreuters.com))