I Squared Capital Acquires Majority Stake in Elea Data Centers

Why It Matters

The deal gives Elea the scale and financing needed to expand rapidly in Brazil, reinforcing the country’s role as a strategic hub for hyperscalers and AI workloads in Latin America.

Key Takeaways

• I Squared Capital acquires majority stake in Elea Data Centers
• Elea runs nine campuses, 300 MW powered, over 1 GW in pipeline
• Rio AI City aims for up to 3.2 GW renewable‑energy capacity
• Expansion targets Brazil’s fast‑growing AI, cloud and colocation demand
• Brazil positioned as key Latin American hub for hyperscalers

Pulse Analysis

Brazil’s data‑center market is maturing faster than most of Latin America, driven by a massive internet user base and a renewable‑energy advantage. I Squared Capital’s majority‑stake acquisition of Elea Data Centers injects both capital and global infrastructure know‑how into a company that already controls nine campuses and more than 300 MW of operational power. This partnership aligns with I Squared’s broader $3 billion Latin America investment strategy, positioning Elea to capture a larger share of the region’s escalating demand for high‑density compute.

At the heart of Elea’s growth plan is Rio AI City, an ambitious campus slated to deliver up to 3.2 GW of renewable‑powered capacity. By co‑locating AI‑intensive workloads with clean energy, the project addresses both performance and sustainability concerns that are increasingly critical for hyperscalers. Elea’s design philosophy emphasizes phased expansion, grid‑friendly locations, and energy‑efficient technologies, ensuring that the infrastructure can scale responsibly as AI models grow in size and complexity.

The acquisition signals a broader shift: Brazil is no longer a peripheral market but a central node for global cloud providers seeking regional resilience and low‑carbon footprints. With robust subsea and terrestrial connectivity, a skilled talent pool, and abundant renewable resources, the country offers a compelling value proposition for hyperscalers expanding beyond single‑country deployments. As Elea accelerates its rollout, investors and tech firms alike will watch Brazil’s digital‑infrastructure landscape evolve into a cornerstone of the next wave of AI‑driven services.

Deal Summary

I Squared Capital announced on April 28, 2026 that it has acquired a majority stake in Brazil-based Elea Data Centers for an undisclosed sum. The acquisition provides Elea with long‑term capital and expertise to accelerate its expansion across Brazil, including the development of the Rio AI City project.