Latin America data center market size expected to reach $9.11

Chicago, Feb. 17 2022 (GLOBE NEWSWIRE) — According to Arizton’s latest research on the Latin America data center market, electrical capacity was valued at 188.5 MW in 2021 and will grow at a CAGR of 7.16% to reach 285 .5 MW by 2027 Latin America to witness more data center investments with less than 10 MW power capacity.

Report cover Details
CAGR (INVESTMENT) 7.13% (2022-2027)
MARKET SEGMENTS Infrastructure, IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technology, general construction and level standards
COUNTRIES COVERED Brazil, Mexico, Colombia, Chile and rest of Latin America

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Key highlights offered in the report:

  1. Increased digitalization during COVID-19 has increased cloud adoption, migration from on-premises installations to colocation and managed installations, 5G rollout, and the presence of an active OTT industry and gaming are some of the major market drivers for the data center industry in Latin America.
  2. Latin America has seen significant investment from telecom service providers as well as colocation operators in recent years. In 2021, Brazil was the top destination for data center investment, contributing around 50% of investment, followed by Mexico.
  3. In 2021, Ascenty, Equinix, Scala Data Centers, ODATA and HostDime were leading colocation operators investing in the Latin American market. Additionally, the market has attracted investments from cloud service providers such as Google, AWS, Microsoft, Oracle, IBM, and Tencent. For example, in March 2021, Microsoft announced new Availability Zones in São Paulo as part of its “More Brazil” plan.
  4. Several local governments in Latin America offer tax incentives and dedicated zones for the development of data centers. For example, Chile plans to provide tax incentives for the growth of data centers in Patagonia. Colombia has free trade zones such as the Bogota Free Trade Zone (Bogota Zona Franca).
  5. The adoption of renewable energy sources to improve electricity grids is also a major item on the agenda of many local governments in Latin America. For example, Columbia is working to increase renewable energy generation through solar panels, which would account for about 10% of renewable energy from solar power by 2030.

Key offers:

  • Market Size and Forecast by Investment | 2021−2027
  • Market Size and Forecast by Area (Sq. Feet) | 2021−2027
  • Market Size and Forecast by Power Capacity (MW) | 2021−2027
  • Market Dynamics – Key Trends, Growth Drivers, Restraints and Investment Opportunities
  • Market segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, level standard and geography
  • Competitive landscape – 11 IT infrastructure vendors, 24 support infrastructure vendors, 8 construction contractors and 11 data center investors

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Latin America Data Center Market Key investments

  • In September 2021, Nokia and AngloGold Ashanti Colombia, together with Epiroc, Sandvik, Tigo and OSC Top Solutions, conducted the first 5G underground tests for underground mining.
  • In September 2021, AWS planned to launch its third edge location facility in Fortaleza, Brazil. The edge location will host AWS services such as CloudFront, a content delivery network (CDN) offering.
  • In March 2021, Microsoft announced new Availability Zones in São Paulo as part of its “More Brazil” plan. Additionally, the company plans to expand its area coverage by the end of 2021.
  • In November 2021, Brazilian operator NLT Telecom, a mobile virtual network operator (MVNO) focused on IoT connectivity, expanded its operation of private IoT networks in Chile and Mexico.
  • Colombia has about 11 submarine cables connecting the rest of Latin American countries and the United States, and two are upcoming submarine cable projects.

Latin America Data Center Market – Segmentation

Market segmentation by infrastructure

  • Informatique infrastructure
  • Electrical infrastructure
  • Mechanical infrastructure
  • General construction

Market segmentation by IT infrastructure

Market segmentation by electrical infrastructure

  • UPS systems
  • Generators
  • Transfer Switches and Switchgear
  • Power distribution units
  • Other electrical infrastructure

Market segmentation by mechanical infrastructure

  • Cooling systems
  • Brackets
  • Other mechanical infrastructure

Market segmentation by cooling systems

  • CRAC & CRAH units
  • Cooling units
  • Cooling towers, condensers and air coolers
  • Economizers and Evaporative Coolers
  • Other cooling units

Market segmentation by cooling technique

  • Air-based cooling technique
  • Liquid-based cooling technique

Market segmentation by general construction

  • Core and shell development
  • Installation and commissioning services
  • Building and Engineering Design
  • Physical Security
  • Fire detection and extinguishing

Market segmentation by standard level

  • Level I and II
  • Level III
  • Level IV

Market segmentation by geography

  • Brazil
  • Mexico
  • Colombia
  • Chile
  • Rest of Latin America

Latin America Data Center Market – Competitive Landscape
In Latin America, the data center market relies on the presence of global and local infrastructure providers. There are several infrastructure vendors involved in offering specific products or complete power infrastructure solutions for data centers. Vendors are increasing their presence in Latin American countries, which should drive revenue growth, particularly due to increased construction of large data centers in countries such as Brazil, Chile, Colombia and Mexico. Partnerships between data center operators, local resellers, and qualified local technicians will facilitate installation and commissioning services and prove cost-effective for vendors in the market.

Top IT Infrastructure Providers

  • Arista Networks
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise
  • Huawei technology
  • IBM
  • Juniper Networks
  • Lenovo
  • NetApp
  • Oracle

Top Support Infrastructure Providers

  • ABB
  • Alfa Laval
  • Assa Abloy
  • Communications Axis
  • Bosch Security Systems (Robert Bosch)
  • caterpillar
  • Cummins
  • Delta Electronics
  • Daikin applied
  • eaton
  • Generac Power Systems
  • Honeywell International
  • Johnson Controls
  • Great
  • Electric Mitsubishi
  • Munters
  • Piller Power Systems
  • Panduit
  • Rittal
  • Rolls Royce
  • Schneider-Electric
  • Siemens
  • Vertiv

Main construction contractors

  • Aceco TI
  • South American builder
  • Fluor Corporation
  • Stand construction
  • Jacobs Engineering Group
  • Quark
  • ZFB Group

Top Data Center Investors

  • Ascent
  • Ava Telecom
  • equinix
  • HostDime
  • InterNexa
  • OneX
  • Scala Data Centers
  • Telmex
  • Tigo Millicom
  • Quantico Data Center

Explore our data center knowledge base profile to learn more about the industry.

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