RIO DE JANEIRO (Reuters) -U.S. data center operator Equinix ( EQIX ) is expanding its operations in Brazil, which the firm sees as a priority market, its managing director for Latin America Eduardo Zago said on Thursday.

WHY IT'S IMPORTANT

Equinix ( EQIX ) is one of the companies benefiting from the increased demand for data center infrastructure amid a surge in artificial intelligence usage.

Brazil has been seeking to become a sustainable infrastructure hub, given the country's abundant supply of renewable energy. The government has also proposed to exempt data center-related equipment from federal taxes to lure investment.

BY THE NUMBERS

Equinix ( EQIX ) has eight data centers in Brazil, with a ninth under construction, Zago said during an event in Rio de Janeiro. All are located across the country's southeastern states of Sao Paulo and Rio de Janeiro, he added.

Equinix ( EQIX ) also bought five real estate areas for a potential future expansion in Brazil, according to Zago. However, the firm does not have a plan for them so far, he said, adding that the company will grow depending on demand.

KEY QUOTES

"Brazil is a priority region for us," Zago said. "It's a market where there is no lack of space nor money," he added, noting the company is in "strong expansion" in the country.

CONTEXT

In Latin America, Equinix ( EQIX ) also has data center operations in Mexico, Chile, Peru and Colombia.