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Latin America Data Center Market - Industry Outlook & Forecast 2022-2027

Latin America Data Center Market - Industry Outlook & Forecast 2022-2027

  • January 2022
  • 303 pages
  • ID: 6221895
  • Format: PDF
  • Arizton

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In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Latin America Data Center Market Report

Latin America data center market witnessed investments of USD 6.03 billion in 2021 and will witness investments of USD 9.11 billion by 2027, growing at a CAGR of 7.13 % during 2022-2027

Latin America data center market has been attracting significant investments in recent years, led by countries such as Brazil, Chile, Colombia, Mexico, Bolivia, And Argentina. All countries in Latin America will see more and more installations of submarine network connectivity, leading to higher data center development driven by efforts from government agencies, telecommunication service providers, and utility providers. The growth of cloud computing will also play a vital role for colocation providers adding connectivity to cloud platforms such as AWS, Google, Oracle, Microsoft, and IBM, leading to further development of the data center market.

The following factors are likely to contribute to the growth of the Latin America data center market.

• 5G Deployments Fueling Edge Data Center Deployments
• Growing Rack Power Density
• Implementation of Automation & AI in Data Centers
• Adoption of Advanced IT Infrastructure in Data Centers
• Adoption of Cloud, IoT & Big Data Drives Data Center Investments
• Increased Deployment of Submarine Cables
• The rise in Digital Economy in Latin America
• Tax Incentives Enhances the Data Center Investments
• COVID-19 Drives Data Center Demand

KEY HIGHLIGHTS

• The Latin America market has witnessed the deployment of seven submarine cables such as Firmina, AURORA Cable System, Caribbean Express (CX), GigNet-1, Deep Blue One, Galapagos Cable System, and Boriken Submarine Cable System (BSCS), which are expected to be ready for service during the forecast period
• The Latin America data center construction market largely depends upon the growth of services such as cloud, big data analytics, and IoT. The market will witness increased investment in broadband connectivity, anticipated to aid in the data center growth of the market.
• Data centers invest more in power infrastructure with a minimum of N+1 redundancy. The majority of data centers are installed with N+N or 2N redundancy for power infrastructure with more redundancy for UPS and generator systems that propel the market’s growth during the forecast period.

LATIN AMERICA DATA CENTER MARKET SEGMENTS

The Latin America data center market has the following segmentation:

• Infrastructure
• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Cooling Technique
• General Construction
• Tier Standard
• Geography

SEGMENTATION ANALYSIS

• Technologies such as cloud, big data, IoT, and 5G network services generate more data through high-end applications and need more efficient systems for data processing. These technologies create a strong demand for advanced IT infrastructure in data centers. The growing number of data center constructions is also fueling IT infrastructure, thereby, demand for the growth of the data center market.
• The selection of server infrastructure depends on cost, form factors, and energy consumption. Most of the modern data center operators are involved in the adoption of server infrastructure that best matches their workload requirements. Thereby, server infrastructure has witnessed strong growth in the market.
• The adoption of UPS systems is highly dependent on the critical IT and cooling load of the data center. The emergence of lithium-ion batteries is probable to replace VRLA batteries and contribute significant revenues to the market during the forecast period.

Market segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Market segmentation by IT infrastructure

• Server
• Storage
• Network

Market segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Market segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Market segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Market segmentation by Cooling Technique

• Air-Based Cooling Technique
• Liquid-Based Cooling Technique

Market segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Building and Engineering Design
• Physical Security
• Fire Detection & Suppression
• DCIM/BMS

Market segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

VENDOR ANALYSIS
• Vendors are increasing their presence in Latin American countries, which boosts revenue growth, especially due to the increased construction of large data centers in Brazil, Chile, Colombia, and Mexico. The data center market has the presence of both global and local infrastructure providers. Several infrastructure providers are involved in offering specific products or complete power infrastructure solutions for data centers to benefit the growth of the market.
• Many data center operators are adopting units from different vendors to provide efficient cooling solutions for the facility. In Latin America, the market for chilled water systems units, CRAH & CRAC units, and air chillers is high and is increasing gradually YOY, because the majority of the data center facilities are adopting these cooling systems to boost the growth of the market.

Key IT Infrastructure Providers

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

Key Support Infrastructure Providers

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

Key Construction Contractors

• AECOM
• Aceco TI
• Constructora Sudamericana
• Fluor Corporation
• Holder Construction
• Jacobs Engineering Group
• Quark
• ZFB Group

Key Data Center Investors

• Ascenty
• Ava Telecom
• Equinix
• HostDime
• InterNexa
• ODATA
• Onex
• Scala Data Centers
• Telmex
• Tigo (Millicom)
• Quantico

GEOGRAPHICAL ANALYSIS
• Major cloud service providers are establishing new cloud regions in Brazil, Microsoft announced new availability zones in Sao Paulo as part of its "More Brazil" plan. In addition, the company has planned to expand its zone coverage by the end of 2021.
• In May 2021, Scala Data Centers acquired the Algar Tech data center and will develop a 100 MW data center campus spread over an area of around 1.4 million square feet at full built thereby, having a strong regional presence in the Brazil data center market.

Market Segmentation by Geography

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

KEY QUESTIONS ANSWERED:

1. How big is the Latin America data center market?
2. Who are the key investors in the Latin America data center industry?
3. What segments are covered in the Latin America data center market?
4. What are the factors driving the data center colocation market growth in the Latin America data center market?
5. Which country has the highest market share in the Latin American data center market?

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