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Data Center Market in Latin America - Industry Outlook and Forecast 2018-2023

Data Center Market in Latin America - Industry Outlook and Forecast 2018-2023

  • April 2018
  • 206 pages
  • ID: 5373411
  • Format: PDF
  • By Arizton

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This market research report on Latin America data center market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other infrastructure), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), and by geography (Brazil, Colombia, Chile, and rest of Latin America).

Latin America Data Center Market - Overview
The construction of more than 20 new projects, covering more than 800,000 thousand square feet of area, and consuming around 125 MW of power capacity is driving the growth of the of Latin America data center market. The growing digitalization efforts by the government agencies in Latin America and the increasing investment by top enterprises to improve the economy will transform the market in this region. The availability of strong fiber connectivity, reliability in power supply, and high demand for innovative technological solutions from various industries will boost the construction of new facilities in the Latin American market.

The design guidelines by the Uptime Institute tier standards and the International Computer Room Experts Association (ICREA) will create a new opportunity for operators to deploy facilities with innovative designs in the Latin American market. The increasing investments by telecommunication operators such as Entel, Antel, Telefonica (Vivo), Americatel, Telecarrier, and Embratel (América Móvil) will result in improved network connectivity and initiation of submarine cable projects in the market in this region. Furthermore, development of new projects by local and global colocation providers such as Ascenty, Equinix, Odata, Angola Cable, TigoUne, and Axtel is expected to grow in the Latin America data center market over the next few years.

Brazil is the leading revenue contributor in the Latin America data center market, followed by other countries such as Chile, Colombia, Mexico, Argentina, and Peru. The growing adoption of modern technological solutions such as cloud, big data, and IoT will propel the construction or colocation of new facilities in Latin American market. The Latin America data center market is anticipated to reach revenues of over $1 billion by 2023 and is projected to grow at a CAGR of more than 11% during the forecast period.

Latin America Data Center Market - Dynamics
The increasing tax incentives and low-cost land for new facilities construction offered by the government bodies will attribute to the growth of the Latin America data center market. The increasing investment in data center deployment will improve the local, state, and country economy in the Latin American market. The government in Brazil offers incentives on the purchase of infrastructure that aids in improving broadband connectivity in the country through the Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) program. Colombian government offers free trade zones for construction of new facilities in the region. Bogota Free Trade Zone (Bogota Zona Franca) and West Free Trade Zone (Occidente Zona Franca) are two of zones in Colombia. Other major countries such as Chile, Mexico, and rest of Latin America is expected to continue to offer tax incentives to operators to boost the deployment of new facilities in the Latin America data center market.

Latin America Data Center Market - Segmentation
This market research report includes a detailed segmentation of the market by electrical infrastructure, mechanical infrastructure, general construction, and geography.

Latin America Data Center Market – By Electrical Infrastructure
Adoption of VRLA UPS systems, Diesel Generators, and Intelligent PDUs, will continue to grow in the Latin America data center market during the forecast period

The data center market in Latin America by electrical infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems segment occupied the largest market size in 2017 and is expected to grow at a CAGR of approximately 13% during the forecast period. The development of facilities of Tier 3 standard designs and operational capacity with a minimum of N+1 redundant UPS systems will boost the growth of this segment in the Latin American market. The emergence of lithium-ion battery systems and procurement of integrated battery monitoring solution will revolutionize the market in Latin America. These innovative systems will help in maintaining the high availability requirement of these facilities and offer greater energy efficiency, resilience, and reliability in the Latin America data center market. The leading players are designing UPS systems for modern centers to provide a dual line of power with an innovative load balancing mechanism.

Latin America Data Center Market – By Mechanical Infrastructure
The adoption of free cooling chiller or evaporative coolers will grow in the Latin America data center market during the forecast period

The mechanical infrastructure in the Latin America data center market is classified by cooling systems, rack, and other infrastructure. Rack systems dominated a significant market size in 2017 and are estimated to grow at a CAGR of more than 13% during the forecast period. The adoption of 45U and 47U racks with integrated rack PDUs and rack-level UPS systems will increase in the Latin America data center market. The market will witness incorporation of innovative design techniques across cooling and rack systems propelling the growth of the Latin America data center market. The containment systems offered by operators in the market consist of two formations - hot aisle and cold aisle systems. The adoption of free cooling will grow across facilities in Latin America especially in Chile and Colombian markets.

Latin America Data Center Market – By General Construction
Deployment of integrated monitoring components to gain traction in the Latin America data center market during the forecast period

The Latin America data center market by general construction is divided into building development, installation and commissioning services, building design, physical security, and DCIM. The installation and commissioning services segment occupied a considerable market size in 2017 and are anticipated to grow at a CAGR of close to 13% during the forecast period. The deployment of modular facilities will involve installation and commissioning process such as power connectivity with the grid, network cabling, and heat transfer mechanisms in the Latin American market. The growth of the greenfield data center facilities will generate more revenue for installation and commission service providers during the forecast period. The deployment of integrated monitoring components will revolutionize the Latin America data center market.

Latin America Data Center Market – By Geography
Colombia is the most popular destination in the Latin America data center market

The geographical segment in the Latin America data center market is categorized into Brazil, Colombia, Chile, and rest of Latin America. Colombia is the fastest growing country in the market and is expected to grow at a CAGR of over 12% during the forecast period. The increasing number of smartphone users and initiatives by telecommunications providers to improve broadband connectivity is contributing to the development of this region in the Latin American market. The development activities by the local and international modular facilities operators are revolutionizing the Colombian market and creating new opportunities for vendors in Latin America. The growing demand for a minimum of N+1 redundancy in the power infrastructure and need for automation solutions will help boost the revenues in the Colombian market. The availability of Bogota Free Trade Zone (Bogota Zona Franca) and West Free Trade Zone (Occidente Zona Franca) will increase the investment in the Colombian region in the Latin American market during the forecast period.

Key Vendor Analysis
The Latin America data center market witnesses the presence of both global and local providers. The leading operators are offering innovative power infrastructure solutions to sustain the intense competition in the market. The emergence of lithium-ion batteries, fuel cells, and DRUPS will add to the revenues in the Latin American market and help the key vendors gain a larger market share. The infrastructure providers are focusing on offering integrated DCIM solutions at affordable rates to gain a large consumer base in the Latin American market. The top players are partnering with modular data center developers to boost their revenues and expand their businesses across the Latin American region.

The major vendors in the market are:
• Infrastructure Provider
o ABB
o Eaton
o GE
o Rittal
o Schneider Electric
o STULZ
o Vertiv
• General Construction Contractors
o AECOM
o KKR Investment Group (Aceco TI S.A.)
o Flex Enclosure
o ZFB Group
• Data Center Investors
o Equinix
o Ascenty
o Odata (Patria Investments)
o TigoUne (UNE EPM)
o Axtel

Other prominent vendors include Active Power (Piller Power Systems), AIRSYS, Alfa Laval, Caterpillar, Cummins, Cyber Power Systems, Daikin Applied (Daikin Industries), Delta Group, Generac Power Systems, Geist Global, Legrand, Mitsubishi Electric Corporation, Munters, Nortek Humidity (Condair Group), Toshiba, Pentair, Afonso Franco Engineering, Fluor Corp., Jacobs Engineering Group, Holder Construction, Mortenson Construction, HostDime, Telefonica, Entel, and Antel.

Key market insights include
1. The analysis of Latin America data center market provides market size and growth rate for the forecast period 2018-2023.
2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the Latin America data center market.
3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
4. It offers a complete overview of market segments and the regional outlook of Latin America data center market.

Report Snapshot
The data center market size in Latin America is expected to reach around $1 billion by 2023, growing at an impressive CAGR of more than 11% 2018–2023.

The Latin America data center market is driven by the improving broadband and network connectivity in the region. The increasing investments by leading cloud hosting service providers such as AWS, Microsoft, Google, Oracle, and IBM will propel the development of the Latin America data center market during the forecast period. The market research report provides in-depth market analysis and segmental analysis of the Latin America data center market by product, distribution channel, material, and geography.

Base Year: 2017
Forecast Year: 2018–2023

The study considers the present scenario of the Latin America data center market and its market dynamics for the period 2018'2023. The study covers a detailed overview of several market growth enablers, restraints, and trends. It covers both the demand and supply side of the market. Also, the study profiles and analyzes the leading and other prominent market participants across infrastructure vendors, data center general construction contractors, and colocation providers operating in the Latin America data center market.

Major Vendors in the Latin America Data Center Market
• Infrastructure Provider
o ABB
Overview
Product Offerings
Key News
o Eaton
o GE
o Rittal
o Schneider Electric
o STULZ
o Vertiv
• General Construction Contractors
o AECOM
o KKR Investment Group (Aceco TI S.A.)
o Flex Enclosure
o ZFB Group
• Data Center Investors
o Equinix
o Ascenty
o Odata (Patria Investments)
o TigoUne (UNE EPM)
o Axtel

Prominent Players in the Latin America data center market
o Infrastructure Provider
o Active Power (Piller Power Systems)
o Product Offerings
o AIRSYS
o Alfa Laval
o Caterpillar
o Cummins
o Cyber Power Systems
o Daikin Applied (Daikin Industries)
o Delta Group
o Generac Power Systems
o Geist Global
o Legrand
o Mitsubishi Electric Corporation
o Munters
o Nortek Humidity (Condair Group)
o Toshiba
o Pentair
• Construction Contractors
o Afonso Franco Engineering
o Fluor Corp.
o Jacobs Engineering Group
o Holder Construction
o Mortenson Construction
• Data Center Investors
o HostDime
o Telefonica
o Entel
o Antel

Market Segmentation by Electrical Infrastructure
• UPS systems
• Generators
• Transfer Switch and Switchgear
• Rack PDU
• Other Electrical Infrastructure

Market Segmentation by Mechanical Infrastructure
• Cooling Systems
• Rack
• Other Mechanical Infrastructure

Market Segmentation by Cooling Systems
• CRAC & CRAH Systems
• Chillers
• Cooling Towers & Dry Coolers
• Economizer & Evaporative Coolers
• Other Cooling Units

Market Segmentation by Cooling Technique
• Air-based Cooling Technique
• Water-based Cooling Technique

Market Segmentation by General Construction
• Building Development
• Installation & Commissioning
• Building Design
• Physical Security
• DCIM

Market Segmentation by Geography
• Brazil
• Colombia
• Chile
• Rest of Latin America

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