Latin America data center market size is expected to grow at a CAGR of around 6% during the period 2019−2025.
Key Highlights Offered in the Report:
- Brazil is the hotspot for data center investment with 10 projects in 2019, followed by Chile and Colombia.
- Google and AWS will be the major contributors to boost data center investments in Chile and Argentina in the next two years.
- Expansion plans of colocation operators such as, Equinix, Ascenty, ODATA, TigoUne, Antel, and others across Latin America to increase competition in the market.
- Modular data center developers namely, Flexenclosure, Etix Everywhere, and Huawei to benefit from market growth.
- DRUPS providers namely, KINOLT (Euro-Diesel), gaining generator market share in Latin America.
- Market Size & Forecast by Revenue | 2019−2025
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography
- Competitive Landscape – Profile of 5 IT infrastructure providers, 7 support infrastructure providers, 5 construction contractors, and 5 data center investors
Data Center Market in Latin America – Segmentation
- IT spending in Latin America is growing significantly YOY. The growth is majorly driven by enterprises shifting from on-premise IT infrastructure to colocation. Enterprises are more concerned about the availability of support services such as reliable power, cooling system efficiency, high-speed connectivity, and security.
- The adoption of generators of capacity over 2 MW is growing in Latin America. The service providers in Latin American countries continue to invest more in N+N redundant generators rather than N+1 or 2N for power distribution and UPS systems.
- Several facilities in Brazil are commonly utilizing water-based cooling systems. Some parts of Brazil also offer the climatic benefit of adopting free cooling and air-based cooling techniques. The large data center development in Brazil during the forecast period is expected to adopt systems that support free cooling.
Market Segmentation by IT Infrastructure
Market Segmentation by Electrical Infrastructure
- UPS Systems
- Transfer Switches and Switchgears
- Rack PDU
- Other Electrical Infrastructures
Market Segmentation by Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH units
- Chiller Units
- Cooling Towers, Dry Coolers, & Condensers,
- Other Cooling Units
- Others Mechanical Infrastructure
Market Segmentation by General Infrastructure
- Building Development
- Installation and Commissioning Services
- Building Designs
- Physical Security
- DCIM & BMS
Market Segmentation by Tier Standards
- Tier I &II
- Tier III
- Tier IV
Data Center Market in Latin America – Dynamics
In Latin America, the major lookout for data center operators is tax incentives. Many countries in Latin America are providing tax incentives for both local and global data center investors, leading in more development of data centers during the forecast period. Also, many countries are providing land for the construction of data centers. For instance, in Brazil, the government provides incentives through the Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) program, which includes incentives on the purchase of infrastructure that help improve local broadband connectivity in the country. Colombia has become an attractive destination for data center development because of special interest in its Free Trade Zone. Colombia provides the Free Trade Zone as an appropriate location for data centers. In addition, the Free Trade Zone will enable tax incentives for data center developers.
Key Drivers and Trends fueling Market Growth:
- Increased Use of Big Data & IoT Technologies
- Rising Interest for Modular/Containerized/Pod Data Center Deployment
- Adoption of Flash Storage Solutions
- Shift to Edge Data Center Deployments
Data Center Market in Latin America – Geography
Brazil is the leading country with the highest number of facilities. With the increasing internet penetration, the use of cloud-based services by businesses is growing. In Brazil, there were about 13 new facilities opened or under-construction projects and are likely to be operational by 2019. Cloud service providers such as Alibaba is also planning to launch its cloud computing service in Brazil. Alibaba has identified a local partner known as UOL Diveo that will resell its cloud services in Brazil. In Brazil, Sao Paulo is the state with the majority of investment from Ascenty, Equinix, UOL DIVEO. Rio de Janeiro is also preferred by colocation service providers such as Ascenty and Centurylink.
Market Segmentation by Geography
- Rest of Latin America
Prominent (IT) Infrastructure Providers
- Hewlett Packard Enterprise (HPE)
- Dell Technologies
Prominent Support Infrastructure Providers
- KINOLT (Euro-Diesel)
- Schneider Electric
Prominent Construction Contractors
- Constructora Sudamericana S.A.
- Aceco TI
- ZFB Group
Prominent Data Center Investors
- Bridge Data Centres
- Tigo (Millicom)
Other Prominent IT Infrastructure Providers – Arista, Broadcom, Juniper, Lenovo, NetApp, Oracle, Pure Storage
Other Prominent Construction Contractors – Fluor Corporation, Holder Construction, Jacobs Engineering Group, Mortenson Construction
Other Prominent Infrastructure Providers – Active Power (Piller Power Systems), Alfa Laval, Assa Abloy, Axis Communications, Bosch Security Systems (Robert Bosch), Caterpillar, Cisco, Cummins, Daikin Applied (Daikin Industries), Delta Group, Generac Power System, Honeywell International, Legrand, Mitsubishi, Munters, Panduit, Siemens
Other Prominent Data Center Investors – EdgeConnex, GTD Group, Telefonica
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