Capital Flows to the Region Climb, Attracted by Projects and Infrastructure Development
Last year, Latin America registered an increase of 7.1% in foreign direct investment, with mining and technology expansion leading the way. The Economic Commission for Latin America and the Caribbean (ECLAC) recently reported that flows of direct investment to Latin America and the Caribbean (LAC) countries totaled US$188.962 billion in 2024, reflecting a 7.1% increase over the previous year. The improvement in capital flows indicates the increased ability of the region to attract global funds for projects, infrastructure, and the development of strategic sectors to enhance the industrial competitiveness of countries in Latin America.
This increase in investment, according to information from Luciano Marrazzo, Regional Director for the Southern Cone of Latin America at Rockwell Automation, has been linked to the development of new mining infrastructure in the region and the expansion of the data center market, both of which are strategic for the modernization of the region’s industries. “The region is going through a new cycle of strategic investments, especially in mining, energy, and the data centers that will provide the capacity to process data at an increasingly required level,” says Marrazzo, in an interview at Automation Fair 2025. The investments are not only related to those that will directly impact these sectors; they will generate a multiplier effect across the entire region, generating new opportunities for other industries, such as manufacturing, logistics, and even the consumer market.
The development of these new infrastructure projects, which is what stands out most, is significant due to the fact that they also come at a time when industrial digitalization has become the main focus of the region’s companies. Investments in smart sensors, automation platforms, AI process management, etc., are aimed at optimizing operations and achieving greater efficiency with lower operational costs. At the same time, the industrial data that will be generated in greater volume requires the development of highly qualified human capital specialized in data science, cybersecurity, and new digital manufacturing processes. Attracting these professionals will also be a challenge for the region and will determine its ability to continue attracting foreign investment.
Latin America Data Center Market Grows 8.11% Until 2033
The new wave of infrastructure and investment in Latin America is accompanied by the growth of the data center market, required for the greater volume of digital information to be processed by industries and companies, as well as for the advanced technological platforms required to automate operations. “Facilities have been announced on an unprecedented scale, including facilities that focus on artificial intelligence. This is a strong indication that the data processing capacity that industry increasingly needs in Latin America is going to grow exponentially, to take on tasks of increasingly high performance,” states Marrazzo.
According to data from IMARC, the data center market in Latin America reached a value of US$15.38 billion in 2024 and is expected to almost double, reaching US$32.74 billion in 2033, with a CAGR of 8.11% between 2024 and 2033. The high growth is justified by the greater volume of information that has to be processed, including data from industrial sensors, applications on the cloud, AI-powered tools and robotic platforms, as well as digital data visualization platforms and databases that support data-driven decision making, predictive maintenance, and logistics, among other operational activities.
“Facilities have been announced on an unprecedented scale, including facilities that focus on artificial intelligence,” states Luciano Marrazzo.
The growth of this market is important, but it also comes with great challenges. The expansion of the data center market means that companies must now deal with cybersecurity and fraud risks, have redundancy in electricity supply and other resources, and also comply with local regulations on data protection, consumption, and energy efficiency. This is why they are also starting to invest in renewable sources to power their data centers, as this is a factor of great importance to multinational investors. By taking these measures, the region can increase its competitiveness and position itself to attract additional investment capital, which also explains why foreign investment in Latin America grows steadily.
Emerging Technologies for New Challenges in Industrial Automation
Artificial intelligence and autonomous control systems are the new frontier in industrial automation that Latin America is starting to adopt. “Artificial intelligence is going to be the new applied technology, allowing industrial processes to make decisions autonomously, change parameters in real time, and, in many cases, operate with little or no human supervision,” Marrazzo explains. Applications are already in use in autonomous internal transport vehicles, self-adjusting and self-learning manufacturing systems, predictive maintenance, intelligent sensors, and platforms that can even read and understand natural language. These new applications are revolutionizing traditional industries, transforming operations with greater efficiency, lower error, and higher productivity.
The challenge with the adoption of these technologies is that the exponential growth of industrial data now requires computing power to support this type of activity. The question is whether the technology and energy infrastructure can support these new requirements. Therefore, investments in new power grids, high-speed communication, and cloud-based platforms and computing, as well as their integration with advanced technologies, are crucial to make operations possible and sustainable. “This requires evaluating whether the technological and energy infrastructure is prepared to support that demand,” he says.
In addition to the infrastructure, the development of human capital is also of great importance. Automation and autonomous control, in the long term, mean an exponential increase in the need for engineers, data analysts, and IT systems to manage and optimize all this information. New areas such as artificial intelligence, advanced digital manufacturing, cybersecurity, and digitalization in general will be the new object of study in professional and technical training programs, with companies and educational institutions already working to develop professionals. Programs and specialization courses in universities and technical training centers will be required, as well as financial investments to support new talent to optimize these factories and operations.
Regional Outlook
Investment flows to Latin America are expected to grow in the coming years, whether in traditional industries such as mining and energy or in new areas of data centers, AI, and advanced manufacturing. Policies are being adopted by countries to attract foreign investment and promote the expansion of industries with tax incentives, public-private partnerships, regulatory frameworks, and new legislation that can facilitate the adoption of new technologies. With abundant natural resources and a strategic location, the region will continue to be attractive to foreign investors.
Analysts consider that the fact that Latin America has been able to modernize its industry, adopting digital transformation processes, as well as starting to develop strategic infrastructure projects, is why foreign investment in Latin America grows in the current global environment, marked by economic uncertainties. The new data center industry, in particular, can offer long-term potential for the expansion of industry and, consequently, industrial efficiency and competitiveness in the region. In the same way, mining and energy projects represent opportunities to provide economic stability to countries and to generate the capital necessary to attract and support more advanced technological projects.
In summary, the 7.1% increase in FDI to the region demonstrates its ability to attract funds into strategic sectors, with a multiplier effect that can drive growth, innovation, and digitalization. As countries continue to invest in infrastructure, human capital, and technology, the region is expected to see sustained growth in investment flows in the coming years and become a global hub for industrial and technological development. In this sense, foreign investment in Latin America grows both in response to the region’s emerging opportunities and as part of a long-term strategic project for industrial transformation.