RIO DE JANEIRO, Oct 23 (Reuters) - U.S. data center operator Equinix (EQIX.O) is expanding its operations in Brazil, which the firm sees as a priority market, its managing director for Latin America Eduardo Zago said on Thursday.

WHY IT'S IMPORTANT

Equinix is one of the companies benefiting from the increased demand for data center infrastructure amid a surge in artificial intelligence usage.

Brazil has been seeking to become a sustainable infrastructure hub, given the country's abundant supply of renewable energy. The government has also proposed to exempt data center-related equipment from federal taxes to lure investment.

BY THE NUMBERS

Equinix has eight data centers in Brazil, with a ninth under construction, Zago said during an event in Rio de Janeiro. All are located across the country's southeastern states of Sao Paulo and Rio de Janeiro, he added.

Equinix also bought five real estate areas for a potential future expansion in Brazil, according to Zago. However, the firm does not have a plan for them so far, he said, adding that the company will grow depending on demand.

KEY QUOTES

"Brazil is a priority region for us," Zago said. "It's a market where there is no lack of space nor money," he added, noting the company is in "strong expansion" in the country.

CONTEXT

In Latin America, Equinix also has data center operations in Mexico, Chile, Peru and Colombia.

Reporting by Rodrigo Viga Gaier in Rio de Janeiro; Writing by Andre Romani; Editing by Aurora Ellis via Reuters.