Arch Capital replaces Mercado Livre with data center at Golgi development in São Paulo

The conversion of a Golgi logistics project signals that the expansion of data centers could reshape competition for land in Brazil's industrial real estate market

Roberto Miranda de Lima, Founder and CEO of Arch Capital

By: SiiLA News

07/07/2026

Brazil's industrial properties market may be entering a new phase of competition for development sites. Driven by the rapid growth of artificial intelligence and rising demand for digital infrastructure, data center developers are beginning to compete for land that, until recently, was reserved almost exclusively for logistics facilities.

One of the latest examples involves Golgi. The company's project in the Perus district of northern São Paulo was originally developed to house a Mercado Livre logistics operation. However, the deal fell through, and the development will now be converted into a data center.

Golgi São Paulo is located along one of the city's main logistics corridors, with direct access to the Mário Covas Ring Road. The site is close to major e-commerce operations, including a distribution center used by Anjun Express, the logistics provider serving Shein, Shopee, and Amazon.

According to information obtained by REsource, Arch Capital, Golgi's parent company, decided to transfer the project to 247, the group's data center development platform. Following the strategic shift, construction of the industrial property was reportedly halted, and part of the existing structure is expected to be demolished to make way for the new facility.

Logistics out, data centers in

This trend has become increasingly common in international markets. Prologis, for example, has converted two developments originally planned for logistics use into data centers, one in Chicago and another in Arizona.

The biggest challenge for data center projects, however, is not land availability but access to electrical infrastructure. According to a technical study by Brazil's Energy Research Office (EPE), there were 12 data center projects with an estimated power demand of 2.5 GW in 2024. By 2025, that number had climbed to 36 projects, representing 15.7 GW of projected demand.

The state-owned research agency says the rapid growth of these projects is already influencing Brazil's power sector planning. A report by The Guardian notes that Brazilian experts are assessing the impact of the data center boom on the country's electrical grid. Among the key concerns are the need to expand transmission and distribution infrastructure, the potential for higher electricity costs, and the effects of concentrating large power consumers in specific regions.

For the real estate industry, the rise of data centers could also change how new developments are evaluated. While vacancy rates, property taxes, and market rents have traditionally been the main factors determining a site's attractiveness, the availability and cost of electricity are becoming increasingly important considerations for developers and investors.

Mercado Livre, Golgi, and Arch Capital were contacted for comment regarding the project but had not responded by the time this article was published.

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