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Digital infrastructure and AI expansion in Latin America

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2026-10-03 19:41 UTC → 2026-10-05 18:07 UTC · added ~~removed~~

Latin American governments and telecommunications companies continue to advance digital connectivity and technological integration. While Brazil, Mexico, Chile, and Colombia lead in AI deployment and data center hosting, the rapid expansion is creating infrastructure strain. In Mexico’s Querétaro region, large-scale investments from companies such as Amazon, Microsoft, and Equinix have led to concerns from residents and organizations like Oxfam regarding energy shortages and water scarcity. The digital economy in the region is valued at approximately $550 billion, representing 8.2% of regional GDP, with projections suggesting AI integration could contribute up to $1 trillion to the GDP by 2038. However, growth faces hurdles such as regulatory complexity and a shortage of specialized technical labor. Recent developments show a shift toward AI adoption among small and medium-sized enterprises (SMEs) to optimize operations. In Ecuador, ~~where there are over 1.1 million active companies,~~ SMEs are focusing on using AI for customer service, content creation, and data organization. In Argentina, the company Gurú launched ‘Luna’, an AI-based virtual assistant designed to help small businesses automate ~~tasks and improve commercial follow-ups. This trend addresses a regional gap, as data indicates~~ tasks. While only 8.7% of regional organizations ~~in Latin America~~ have reached an advanced level of generative AI ~~implementation. While an OECD study found that 31% of SMEs across seven countries use some form of generative AI,~~ implementation, experts suggest small businesses should prioritize solving concrete operational issues over purchasing complex systems. Adding a geopolitical dimension, China is expanding its strategic influence through the deployment of physical AI infrastructure, including data centers, cloud services, and telecommunications networks. Experts suggest this expansion could enhance China’s intelligence and defense capabilities while utilizing regional data to train AI models, potentially risking digital sovereignty and creating technological dependencies. Furthermore, China is working to shape international AI governance by promoting the World AI Cooperation Organization (WAICO), which includes signatories such as Brazil and Cuba.

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