Patria Investments (PAX) Status update summary

Strategic positioning and history

• Successfully developed ODATA, one of Latin America's largest data center platforms, later sold to Aligned Data Centers in 2023, after expanding to seven sites and securing major hyperscaler contracts.

• Launched OMNIA Data Centers in early 2025, with a flagship 200 MW project for ByteDance in Brazil, aiming to expand across Latin America.

• Focused on replicating previous success by leveraging expertise in greenfield development, energy partnerships, and attracting global hyperscalers.

Market opportunity and economics

• Latin America currently holds about 1% of global data center capacity, with potential to reach 5-6% in the next 3-4 years, implying a 4-5x increase.

• Infrastructure investment opportunity estimated at $40-50 billion for 4-5 GW, with potential to reach 10 GW in five years.

• Typical AI data center projects start at 100-200 MW, with CapEx around $10 million/MW, and are funded through a mix of equity and up to 80% debt.

• Projects are only initiated with fully contracted off-takers, using long-term, USD-denominated PPAs, targeting low-teens unlevered and 20%+ levered returns.

Competitive advantages and risks

• Key risks include construction delays, power availability, regulatory hurdles, and high import tariffs, with mitigation strategies involving experienced GCs, integrated grids, and special economic zones.

• Brazil and LATAM offer surplus renewable energy at globally competitive prices, with regulatory improvements and special regimes (e.g., Redata, free trade zones) enhancing project viability.

• Patria's strengths include financial capacity, engineering expertise, power sector knowledge, and real estate capabilities, positioning it as a leading regional player.