Brazil has the technical expertise and infrastructure needed to become a powerhouse in data centers and artificial intelligence, but still lacks sufficient investment and a solid regulatory framework, according to Luis Goncalves, chief executive of Dell Technologies for Latin America.
Goncalves shared the assessment in an interview with the CNN Brasil program "E Negocio," discussing Brazil's position in the global technology landscape.
Local nuances across Latin America
Comparing Latin America with other regions of the world, Goncalves said that a mix of development stages exists on every continent.
He noted that developed Europe and developing Europe both exist side by side.
He said understanding local realities is essential for the success of any regional operation, warning that applying a one-size-fits-all approach across an entire region is also a recipe for failure.
Brazil's stage of technological development
Turning to Brazil specifically, Goncalves said the country shows significant technical maturity but faces a financial bottleneck.
He said what Brazil lacks is more investment capital.
According to him, the country already has a skilled workforce, available energy, physical space and a sophisticated financial system.
He said that sophistication did not arrive because people failed to build it, but rather because Brazil genuinely has the competence to do so.
Digital sovereignty as a global priority
Goncalves described digital sovereignty as one of the top priorities for Brazil and the world. He said not having control over digital operations represents a major risk, especially when it comes to sovereignty.
He observed that even small Caribbean islands are already advancing their own digital sovereignty solutions, and said that given Brazil's size, it should be moving forward by leaps and bounds in this direction.
He said Brazil does have initiatives underway, but admitted he does not think the country is moving fast enough.
Data centers and the Redata program
Asked about Redata, the Brazilian government's program to encourage the construction of data centers in the country, Goncalves acknowledged that progress has fallen short of what the cause deserves.
He stressed that Brazil has exceptional conditions to attract investment in this area, including one of the best energy mixes in the world, physical space, qualified people and strong consumption demand. He said it would be a very attractive destination given the necessary protections.
He also addressed growing resistance in the United States to building new data centers, driven by high consumption of energy, water and natural resources. He said this resistance represents an additional opportunity for Brazil, since international providers are already seeking alternatives outside U.S. territory.
He closed by reinforcing the need for regulatory progress, saying institutional security is needed for these investments to happen, that the regulatory framework matters, and that the process needs to move faster.
About the program
"E Negocio" is a partnership between NeoFeed and CNN Brasil in which journalist Carlos Sambrana interviews executives and leaders from some of Brazil's largest companies. New episodes air Sundays at 8:45 p.m. on CNN Brasil, with a repeat broadcast Wednesdays at 7:15 p.m. on CNN Money.
