Connect33 Newsletter | 2025 Year In Review
TikTok's Brazil data center investment, BairesDev's acquisition, and Connect33's 2025 Year In Review.
Hi readers, Happy New Year, and welcome to our first newsletter of 2026, which covers last month’s Latin American software and technology trends, expansions, and mergers and acquisitions.
In 2025, we introduced our updated monthly newsletter format and launched our Scaling Engineering Teams in LATAM podcast in partnership with Envoy Capital Advisors, featuring interviews with software industry veterans who have built and scaled successful technology companies. Thank you to all our readers who like and share our content–I look forward to continuing to bring Connect33’s monthly updates to your inbox. ¡Vámonos!
Connect33 | Key Trends of 2025: Throughout 2025, Connect33 tracked the most significant technology investments and expansions reshaping Latin America. This year marked a historic turning point for the region’s technology landscape, with over $50 billion in announced investments from global tech giants. TikTok led the charge with a $37.7 billion data center commitment in Brazil, CloudHQ pledged $4.8 billion for hyperscale data centers in Mexico, and Amazon announced a $4 billion commitment to AWS infrastructure in Chile.
The region also saw major operational expansions, including Salesforce’s $1 billion and $500 million commitments to Mexico and Argentina, OpenAI's opening of its first Latin American office in São Paulo, and Databricks' deepening of its Costa Rica and Brazil presence, collectively signaling Latin America’s emergence as a critical hub for global AI and cloud infrastructure.
Key trends:
Nearshore Advantage: Continued M&A consolidation in the software services sector, particularly around US nearshoring
Data Center Boom: Over $50 billion in announced data center investments across Brazil, Mexico, Argentina, and Chile
AI Infrastructure Race: Major cloud providers (AWS, Google, Microsoft, Oracle) all expanded their AI capabilities in Latin America.
Fintech Maturation: Regulatory approvals and major acquisitions signaling sector maturity.
As we move into 2026, Connect33 remains optimistic about the region's growth potential. We look forward to sharing the latest developments with our readers.
ByteDance’s TikTok, the short-video platform, announced a $37.7 billion investment to build its first Latin American data center in Brazil. (Bloomberg)
BairesDev, a nearshore software development company, acquired AI upskilling platform Modal Learning and appointed Modal founder Darren Shimkus as President of North America to strengthen its AI-enabled delivery capabilities. (BairesDev)
Advent International, one of the largest global private equity investors with $100+ billion in assets under management, led Brazilian cloud and AI software company Skyone’s Series C funding round to support the company’s global expansion. (Advent International)
Starian, a Brazil-based vertical SaaS company backed by General Atlantic, acquired corporate whistleblowing provider Contato Seguro for an undisclosed amount to launch its governance and compliance vertical. (Latam Republic)
Atos Group, a global leader in AI-powered digital transformation, signed a binding agreement to sell its South American operations to Brazilian data platform provider Semantix. (Atos)
Coforge, an India-based global IT services provider, signed definitive agreements to acquire Silicon Valley-based AI-native engineering firm Encora for $2.35Bn, significantly expanding Coforge’s nearshore delivery capabilities in Latin America. (Coforge)
Nexo, a Switzerland-based digital assets wealth platform with over $11Bn in assets under management, announced the acquisition of Argentine crypto platform Buenbit to expand into Latin America. (Nexo)
NTT DATA, a leading global IT service provider focused on SAP, signed an agreement to acquire SPRO IT Solutions, a Brazilian SAP provider specializing in agribusiness solutions across Brazil’s key agricultural regions. (NTT DATA)
Visma, a Norway-based European business software leader, acquired Chilean property management platform ComunidadFeliz, marking its third Latin American acquisition in 2025. (LatamList)
Bemobi Mobile Tech, a Brazil-based technology company providing digital payment and SaaS solutions across 12+ countries in Latin America and Asia, completed two acquisitions: embedded payments platform Paytime and PaaS fintech Celer. (Finsiders Brasil)
Telefónica Tech, the digital services division of Spain’s Telefónica Group, reached an agreement with Spanish technology company hiberus for the acquisition of Telefónica Tech’s operations in Colombia, Mexico, and Chile. (Telefónica)
TOTVS, Brazil’s largest technology company specializing in business management software, signed a contract to acquire agribusiness management platform TBDC for R$80 million to strengthen its specialization in Brazil’s agricultural sector. (TI Inside)
Actis, a global infrastructure investor, launched Terranova, a new $1.5 billion Latin American hyperscale data center platform, with its first campus scheduled to begin operations in Querétaro, Mexico. (Mexico Business News)
Additional stories we’re following
Seizing the moment: Latin America’s productivity opportunity
Rediscover The Art of Business Building: Tanuja Randery, Managing Director EMEA, Amazon Web Services
Connect33 is a consulting firm specializing in helping US companies build, buy, and partner with Latin America’s top software development teams. Our list of companies we’ve scaled with includes mid- to large-sized enterprises such as Atrium, Bain & Company, Braze, C3 AI, EPAM, phdata, and more.
LatAm-focused roles at top tech companies.
Miro is hiring a Business Development Representative, LATAM
Databricks is hiring an Enterprise Sales, LATAM (Spanish-speaking)
GitLab is hiring a Strategic Account Executive - LATAM, Mexico City
Dataiku is hiring an Enterprise Account Executive, Latin America (Colombia & Northern Mexico)