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International Finance Corporation mobilises new investors to support ODATA expansion in Brazil

International Finance Corporation (IFC), a member of the World Bank Group, has led a new tranche of financing to strengthen ODATA Brasil S.A.'s investments in its data centres in Brazil.
Source: Pexels

The $30m (approximately BRL 165 m) in finance will allow the company, a data centre infrastructure provider with extensive operations in various market sectors, such as cloud and telecommunications, to expand its operations in the country.

This second stage will complement the initial line agreed in November 2020, comprising $30m of IFC's own resources. The project represented IFC's first data centre financing project. For this second disbursement, IFC mobilised two new investors: Itaú BBA and SMBC (Sumitomo Mitsui Banking Corporation).

Digital services for Brazil's businesses and people

The first and second tranche of financing will support the expansion of three data centres in the country, helping to revitalise and boost Brazil's digital infrastructure. With the largest economy and population in Latin America, Brazil has consolidated itself as the region's leading data centre hub and generates great demand for connectivity.

IFC's mobilisation is expected to expand access to independent data centre capacity in the country, sustaining the growth of the digital economy and expanding quality digital services for businesses and people.

"IFC, in addition to supporting the financing of ODATA's new data centres, has contributed to the company achieving the best sustainability standards in the market, offering value to society and our customers. The arrival of the new funders, Itaú BBA and SMBC, provides even more financial robustness for ODATA to continue to expand rapidly in Brazil and Latin America, contributing to the improvement of digital infrastructure in the region," says Fernando Jaeger, ODATA's New Business director.

Promotion of economic recovery in Brazil

"This project supports the growth of productivity and competitiveness in the Latin American data hosting services market. IFC's mobilisation aims to promote greater digital resilience and a sustainable economic recovery in Brazil, in addition to meeting the population's demand for cloud services," says Carlos Leiria Pinto, IFC's country manager in Brazil.

After the Covid-19 pandemic, increased investment to prepare Brazil’s digital infrastructure will be key to the country’s economic recovery strategy, expanding information and communication technology-enabled services. The project will help in the continued development of a well-established class of data centre infrastructure providers with a focus on wholesale services.

With an established presence in Colombia, Mexico, and Chile, and expansion plans for Peru, ODATA is well positioned to take advantage of the demand for data centre capacity in Latin America.

IFC is a key player in financing digital infrastructure in emerging markets and across the globe. In the past decade, IFC committed and mobilised $5.9 bn for telecommunications, media, and technology projects globally.

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