Google claims it generated US$35bn economic impact on Brazil in 2023

Google claims to have generated an economic impact of 188bn reais (US$35bn) for Brazilian companies and individuals in 2023, a 18.6% jump over 2022.

The figure considers the company's core operations and services – the platforms Search, Google Ads, Google AdSense, Google Play, Google Cloud and YouTube – and is part of its latest economic impact report for the country. The figure was presented during the annual Google for Brasil event on Tuesday.

The values were calculated by the global consultancy Access Partnership. In 2022, the company’s reported economic impact on the Brazilian economy was 153bn reais. Brazil is among the top five countries that most use Google products.

By way of comparison, Brazil’s GDP grew by 2.9% in 2023, with the services sector expanding 2.4%.

Google does not typically report capex figures for its country operations. Parent Alphabet invested US$32bn globally in full-year 2023, up 2.4% year-on-year.

In 2024, the firm's global capex is expected to be "notably larger" than in 2023, as CFO Ruth Porat said in a February earnings call, driven by investments in technical infrastructure, particularly components for servers, followed by datacenters.

DEVELOPMENT

Despite not giving details of its investments, Google has increased its spending on people and development in Brazil.

One of these outlays is a new development center in the country. Located in São Paulo, the site will operate in parallel with the global engineering and development center that the company maintains in Belo Horizonte, to date the only one of its kind in Latin America.

Alex Freire, head of engineering for Google Brasil, said in a press conference that the building will begin receiving adaptations in September and is scheduled to go into operation in January 2026. The company is hiring hundreds of people for the site, said the executive.

“It’s a considerable investment that we’re making in São Paulo,” Freire said at the event.

Google also claims to have trained over 3mn Brazilians in digital skills since 2018, while partnering with over 250 universities and technical schools for training in AI.

Since the creation of the Google for Startups program, more than 450 Brazilian startups have taken part in the initiative, said the company. Of the total, 12 startups later became unicorns, Google claims.

At the Google for Brasil event, the company announced that Rio de Janeiro is the first city in Latin America to participate in a program called Greenlight. The platform uses AI to optimize traffic light operations and streamline traffic routes.

Other announcements made include the launch of a new theft protection system for Android phones developed by engineers in Brazil. The automatic lock activated upon detection of sudden movements typical of grab and run-type thefts, will be available in the country in July and exported to other markets.

Google also announced a tool to facilitate the removal of each individual's personal data from internet searches, new features in Search for companies and new partnerships with social organizations, among others.

INFRASTRUCURE

Google did not provide any update on its cloud and AI infrastructure, such as submarine cables and datacenters.

However, BNamericas has learned that the inauguration ceremony for the Firmina submarine cable is expected to take place soon.

The cable is already deployed and docked across its landing stations in the country. 

Despite this, Google still requires the final and most important permit from environmental watchdog Ibama for the system, which is the installation license.

As for cloud infra, São Paulo hosts one of Google’s two cloud regions in Latin America, the other being in Santiago, Chile.

The São Paulo region was launched in 2017, followed by the one in Santiago in 2022, all with three availability zones each.

The company is now working on a cloud region for Mexico. The project was announced in July 2022 and the region is being developed in Querétaro.

BNamericas has also learned from market sources that Google is studying installing a new datacenter in Brazil. Officially, however, the company has not commented.

In Uruguay, Google is expected to announce its eagerly anticipated Canelones datacenter soon.