The global race for artificial intelligence is often viewed through the lens of software and semiconductors. However, on the ground in Latin America, AI is taking shape as a broader physical and geopolitical transformation. As the world embarks on a projected infrastructure investment in AI of between $5 trillion and $8 trillion by 2030, according to the BlackRock Investment Institute’s 2026 Global Outlook, the region is becoming increasingly integrated into this structural shift.
We are witnessing the convergence of three powerful megaforces: the AI revolution, the reshaping of global supply chains, and the transition to a low-carbon energy system. These forces do not operate in isolation; they are deeply interconnected and mutually reinforcing, creating a new landscape for investors.
The scale of the digital infrastructure underpinning AI is becoming increasingly visible across Latin America. Global cloud providers and private-sector partnerships are expanding their investments in data centers and connectivity, reflecting growing demand for computing capacity. By late 2025, real estate firm Cushman & Wakefield projected a significant increase in data center capacity across the region toward the end of the decade.
This infrastructure expansion is unfolding amid an increasingly complex geopolitical backdrop. As global fragmentation increases, countries are placing greater emphasis on technological resilience. In Latin America, this is contributing to the development of local AI capabilities and a firmer focus on data governance and local infrastructure.
At the same time, efforts to bolster supply chain resilience are restructuring manufacturing and trade flows. Mexico, for instance, has become more closely integrated into North America’s high-value supply chains, extending beyond traditional manufacturing into more advanced sectors, including technology and advanced components. This trend highlights the region’s growing relevance in the evolution of global production networks.
However, one of the primary hurdles to this transformation is energy. The infrastructure supporting AI requires an abundant and reliable power supply. In this context, various areas of Latin America benefit from relatively high levels of renewable energy generation, which can support the development of energy-intensive infrastructure while aligning with decarbonization goals. The region also plays a central role in the global supply of critical minerals, further reinforcing its importance in both the energy and digital transitions.
From an investment perspective, these dynamics underscore the importance of adopting a more granular and selective approach to capturing opportunities. As structural forces reshape economies and markets, outcomes are likely to vary significantly across sectors, countries, and asset classes. This suggests that a more selective approach may be required to pinpoint exactly where value is being created.
Our perspective draws from both global analysis and hands-on investment experience on the ground. While the opportunities tied to AI, infrastructure, and supply chain shifts are significant, they come with macroeconomic, regulatory, and execution challenges. Understanding this balance is essential for investors seeking to navigate the region’s evolving role in the global economy.
For investors, Latin America is not merely a passive beneficiary of these global trends, but an increasingly central part of how they unfold. At the intersection of sovereign AI ambitions, reshaped supply chains, and the energy transition, the region is positioning itself as a vital component for long-term structural growth.
