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.
|MARKET SIZE (INVESTMENT)||$9.11 BILLION (2027)|
|MARKET SIZE (AREA)||1,405 MILLION SQUARE FEET. (2027)|
|MARKET SIZE (ELECTRIC POWER)||285.5MW (2027)|
|CAGR (INVESTMENT)||7.13% (2022-2027)|
|YEAR OF REFERENCE||2021|
|MARKET SEGMENTS||Infrastructure, IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technology, general construction and level standards|
|GEOGRAPHICAL ANALYSIS||Latin America|
|COUNTRIES COVERED||Brazil, Mexico, Colombia, Chile and rest of Latin America|
Click here to download the free sample report
Key highlights offered in the report:
- 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.
- 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.
- 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.
- 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).
- 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.
- 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
Looking for more information? Click on https://www.arizton.com/market-reports/latin-america-data-center-market-report-2025
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
- Transfer Switches and Switchgear
- Power distribution units
- Other electrical infrastructure
Market segmentation by mechanical infrastructure
- Cooling systems
- 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
- 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
- Cisco Systems
- Dell Technologies
- Hewlett Packard Enterprise
- Huawei technology
- Juniper Networks
Top Support Infrastructure Providers
- Alfa Laval
- Assa Abloy
- Communications Axis
- Bosch Security Systems (Robert Bosch)
- Delta Electronics
- Daikin applied
- Generac Power Systems
- Honeywell International
- Johnson Controls
- Electric Mitsubishi
- Piller Power Systems
- Rolls Royce
Main construction contractors
- Aceco TI
- South American builder
- Fluor Corporation
- Stand construction
- Jacobs Engineering Group
- ZFB Group
Top Data Center Investors
- Ava Telecom
- Scala Data Centers
- Tigo Millicom
- Quantico Data Center
Explore our data center knowledge base profile to learn more about the industry.
Click here to download the free sample report
Read some of the best-selling reports:
Arizton Advisory and Intelligence is an innovation and quality-driven company that provides industry-leading research solutions to clients around the world. We excel in providing comprehensive market intelligence reports and advisory and consultancy services.
We offer comprehensive market research reports on industries such as consumer goods and retail technology, automotive and mobility, smart technologies, healthcare and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers and trend forecasts.
Arizton has an exuberant and experienced team of analysts who are proficient in generating incisive reports. Our specialized analysts have exemplary skills in market research. We train our team in advanced research practices, techniques and ethics to surpass the production of impregnable research reports.
Click here to contact us
+1 302 469 0707