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The Latin America data center market is expected to grow at a CAGR of 8.14% from 2022 to 2028. Speak directly to the analyst to clarify any post sales queries you may have.
KEY HIGHLIGHTS
- Regional governments initiate schemes and incentives to attract investments in the Latin America data center market. A free trade zone (FTZ) is introduced in Columbia. Similarly, Patagonia is an emerging data center hub in Chile, as the government plans tax incentives to develop data centers.
- Major contributors to green data center development include Brazil, Chile, Argentina, and Paraguay, among others, wherein data center operators and governments work on adopting renewable energy and other such measures.
- Hyperscale operators in Latin America, including Google, Microsoft, Amazon Web Services (AWS), and Huawei Technologies, drive the market in terms of sustainable investments and innovative technologies.
MARKET TRENDS & OPPORTUNITIES
Adoption of Cloud
Latin America is one of the fastest-growing countries regarding technological development and innovations. The adoption of the cloud fuels data generation and the growth of the technology market. The government takes several initiatives for the growth and development of the cloud. Microsoft, Oracle, IBM, and Huawei Innovation announce new cloud regions/availability zones in Latin America. Some of these cloud regions are already operational, and others will open within the next one to two years.Implementation of Automation & Artificial Intelligence in Data Centers
The adoption of smart devices and the growth in demand for AI and machine learning prompt several investments in the Latin America data center market. Moreover, adopting AI technology is significant in various industries, including data centers. Infrastructure maintenance prevents operational failure with the automation of data center facilities. UPS systems use power for energy storage by converting alternating current (AC) to direct current (DC) and vice versa.Adoption of Renewable Energy
Many renewable energy sources are present across different countries in Latin America, which can help bring energy efficiency to facilities in the Latin America data center market. Further, the increase in average industrial electricity pricing across Latin America, in combination with the increased push toward sustainability, prompts operators to focus on renewable energy procurement through power purchase agreements (PPAs). Several operators in Latin America either procured or signed PPAs to power their regional facilities.SEGMENTATION ANALYSIS
Segmentation by Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
Segmentation by Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Segmentation by IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Segmentation by Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Segmentation by Cooling Technique
- Air-based Cooling
- Liquid-based Cooling
Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Segmentation by Tier Standard
- Tier I & II
- Tier III
- Tier IV
REGIONAL ANALYSIS
- Brazil has multiple colocation providers, such as Ascenty, Scala Data Centers, and ODATA. Several telecom providers, such GlobeNet Telecom, Ava Telecom, and Embratel, have expanded their presence in the country. Colocation operators lead investments in the country. They are expected to grow further with several new project announcements.
- The Latin American data center colocation market witnesses investments in submarine cable projects, connecting with other regions and countries. Mexico City is the primary data center location in Mexico, with eight existing third-party data centers. Cancún, Mexico, is one of the major locations for submarine cable landing, with three active submarine cables and three upcoming projects.
- Colombia witnesses the deployment of trial phases of 5G network connectivity with investment for trial from Nokia, AngloGold Ashanti Colombia, and others.
- Due to its strategic location, Santiago is a major Chilean city that has witnessed data center development. Most operators in Chile, such as ODATA, Ascenty, and EdgeConneX, operate facilities in Santiago.
Segmentation by Geography
- Brazil
- Mexico
- Chile
- Colombia
- Rest of Latin America
VENDOR LANDSCAPE
- Ascenty (Digital Realty), ODATA, Equinix, HostDime, CloudHQ, and Scala Data Centers are significant vendors in the Latin America data center market.
- Several mergers & acquisitions (M&As) occur among colocation vendors in the Latin American data center industry. For instance, in 2022, Equinix announced that it acquired around four data centers of Entel in Chile and Peru. In December 2022, aligned announced an agreement to acquire ODATA, which marks its entry into Latin America.
Prominent IT Infrastructure
- Arista Networks
- Broadcom
- Cisco Systems
- Dell Technologies
- Hewlett Packard Enterprise (HPE)
- Huawei
- IBM
- Juniper Networks
- Lenovo
- NetApp
- Oracle
Prominent Support Infrastructure
- ABB
- Alfa Laval
- Assa Abloy
- Axis Communications
- Bosch Security Systems (Robert Bosch)
- Caterpillar
- Cummins
- Daikin Applied
- Delta Electronics
- Eaton
- Honeywell
- Johnson Controls
- Legrand
- Munters
- Mitsubishi Electric
- Piller Power Systems
- Panduit
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- STULZ
- Vertiv
Prominent Support Infrastructure Providers
- AECOM
- Aceco TI
- Constructora Sudamericana
- Cundall
- Fluor Corporation
- Gensler
- HDOS
- Hyphen
- Holder Construction
- Jacobs Engineering
- KMD Architects
- PQC
- Quark
- Syska Hennessey Group
- Turner Construction
- Turner & Townsend
- ZFB Group
- Zeittec
Prominent Data Center Investors
- AWS
- Ascenty
- Ava Telecom
- Air Link Communications
- Belize Network Information Centre
- Blue NAP Americas
- Brac Informatics Centre (BIC)
- Claro
- Digicel
- Entel
- Epic.io
- Equinix
- EdgeConneX
- GlobeNet Telecom
- Gtd Perú
- HostDime
- InterNexa
- IPXON Networks
- KIO Networks
- Lumen Technologies (Cirion)
- Millicom (Tigo Panama)
- Nabiax
- ODATA
- Oxygen
- OneX
- Scala Data Centers
- SONDA
- Telecom Italia Sparkle
New Entrants
- CloudHQ
- DHAmericas
- Microsoft
KEY QUESTIONS ANSWERED:
- How big is the Latin America data center market?
- What is the growth rate of the Latin America data center market?
- What is the estimated market size in terms of area in the Latin America data center market by 2028?
- What are the key trends in the Latin American data center industry?
- How many MW of power capacity is expected to reach the Latin America data center market by 2028?
Table of Contents
1 Research Methodology2 Research Objectives3 Research Process7 Market at a Glance
4 Scope & Coverage
5 Report Assumptions & Caveats
6 Premium Insights
8 Introduction
9 Market Opportunities & Trends
10 Market Growth Enablers
11 Market Restraints
12 Market Landscape
13 Facility Type
14 Infrastructure
15 It Infrastructure
16 Electrical Infrastructure
17 Mechanical Infrastructure
18 Cooling System
19 Cooling Technique
20 General Construction
21 Tier Standard
22 Geography
23 Brazil
24 Chile
25 Colombia
26 Mexico
27 Rest of Latin America
28 Competitive Landscape
29 Prominent It Infrastructure
30 Prominent Support Infrastructure
31 Prominent Construction Contractors
32 Prominent Data Center Investors
33 New Entrants
34 Report Summary
35 Quantitative Summary
36 Appendix
Companies Mentioned
- Arista Networks
- Broadcom
- Cisco Systems
- Dell Technologies
- Hewlett Packard Enterprise (HPE)
- Huawei
- IBM
- Juniper Networks
- Lenovo
- NetApp
- Oracle
- ABB
- Alfa Laval
- Assa Abloy
- Axis Communications
- Bosch Security Systems (Robert Bosch)
- Caterpillar
- Cummins
- Daikin Applied
- Delta Electronics
- Eaton
- Honeywell
- Johnson Controls
- Legrand
- Munters
- Mitsubishi Electric
- Piller Power Systems
- Panduit
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- STULZ
- Vertiv
- AECOM
- Aceco TI
- Constructora Sudamericana
- Cundall
- Fluor Corporation
- Gensler
- HDOS
- Hyphen
- Holder Construction
- Jacobs Engineering
- KMD Architects
- PQC
- Quark
- Syska Hennessey Group
- Turner Construction
- Turner & Townsend
- ZFB Group
- Zeittec
- AWS
- Ascenty
- Ava Telecom
- Air Link Communications
- Belize Network Information Centre
- Blue NAP Americas
- Brac Informatics Centre (BIC)
- Claro
- Digicel
- Entel
- Epic.io
- Equinix
- EdgeConneX
- GlobeNet Telecom
- Gtd Perú
- HostDime
- InterNexa
- IPXON Networks
- KIO Networks
- Lumen Technologies (Cirion)
- Millicom (Tigo Panama)
- Nabiax
- ODATA
- Oxygen
- OneX
- Scala Data Centers
- SONDA
- Telecom Italia Sparkle
- CloudHQ
- DHAmericas
- Microsoft
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 339 |
| Published | August 2023 |
| Forecast Period | 2022 - 2028 |
| Estimated Market Value ( USD | $ 5.51 Billion |
| Forecasted Market Value ( USD | $ 8.81 Billion |
| Compound Annual Growth Rate | 8.1% |
| Regions Covered | Latin America |
| No. of Companies Mentioned | 83 |
