Latin America Data Center Market Analysis Report 2023-2028: Edge Computing and 5G - The Next Frontier for Deployment

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Aug 03, 2023, 13:15 ET

DUBLIN, Aug. 3, 2023 /PRNewswire/ -- The "Latin America Data Center Market Landscape 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Latin America data center market is poised for significant growth, with investments projected to reach USD 8.81 billion by 2028

The region is witnessing a surge in the adoption of multi-cloud strategies, where businesses are leveraging multiple cloud services from different vendors to cater to diverse application workloads and enterprise databases. This has led to innovations in rack designs, higher power density, and efficient UPS solutions by vendors operating in the market.

Among the top destinations in the region, Brazil stands out as a key player with major cloud service providers like AWS, Microsoft, and Google leading the way. Additionally, investments in new cloud regions are on the rise, exemplified by Google's plans to launch a new cloud region and engineering center in Sao Paulo. Santiago, Chile, is emerging as a data center hub with significant investments from major operators like ODATA, Ascenty, and EdgeConneX.

The presence of several active participants and vendors offering advanced technologies is expected to drive further market growth, giving innovative companies a competitive advantage during the forecast period.

Notable IT and support infrastructure providers in the Latin America data center market include Arista Networks, Cisco Systems, IBM, Dell Technologies, Schneider Electric, and many others, further contributing to the region's promising prospects.

KEY TRENDS

Adoption of Renewable Energy

Many Latin American countries, including Brazil, Chile, Mexico, Argentina, and Peru, work on diversifying electrical systems and enabling policy and regulatory changes conducive to renewable energy production and adoption.
In April 2022, HostDime, a Brazilian operator, announced that it would power its facility using 100% solar energy, investing around USD 1.2 million in the solar power farm.
Chile has a favorable climate for renewable energy. The country's renewable energy production is dominated by solar energy due to the multiple renewable solar energy projects.
In January 2022, Microsoft announced plans to develop a cloud region in Chile at an investment of over USD 315 million. The cloud region will be powered by 100% renewable energy.

Implementation of Automation & Artificial Intelligence in Data Centers

In November 2022, GENIA Latinomerica announced that it introduced LATAM 4.0, the fourth industrial revolution across Latin America. It will promote AI and automation.
Latin American countries identify the benefit of using DCIM systems to monitor and automate their new data centers to overcome potential future challenges. Most vendors in the Latin America data center market that provide power infrastructure invest in software systems, such as StruxureWare from Schneider Electric, Trellis from Vertiv, and the Ability Automation platform from ABB, that track power infrastructure.
Ascenty's data centers are equipped with automation solutions, where support infrastructure is monitored continuously to reduce outages due to power and equipment failures. ODATA is also equipped with monitoring solutions: ITSM and BMS systems.

Edge Data Center Deployment Fueled by 5G Launch

5G is already launched in Mexico, Brazil, and Chile, while Columbia and Argentina run tests for 5G technology. The growth of this technology will influence the network as it will increase the amount of data processed within the servers.
In September 2022, UOL formed Edge UOL and announced a collaboration with DigitalBridge's Scala Data Centers and AWS to explore the opportunity for edge computing.
By 2035, Brazil will see economic growth of over USD 1 trillion due to the deployment of 5G technology, according to Nokia. 5G implementation will also drive the deployment of more edge data centers across the country, especially in Tier II and Tier III states.

KEY QUESTIONS ANSWERED:

How big is the Latin America data center market?
What is the growth rate of the Latin American 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 America data center market?
How many MW of power capacity is expected to reach the Latin America data center market by 2028?

SEGMENTATION INSIGHTS

Segmentation by Facility Type

Colocation & Hyperscale Self-Built 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
Power Distribution Units
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 Techniques

Air-based Cooling Technique
Liquid-based Cooling Technique

Segmentation by General Construction

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

Segmentation by Tier Standard

Tier I & II
Tier III
Tier IV

Segmentation by Geography

Latin America
Brazil
Mexico
Chile
Colombia
Rest of Latin America

A selection of companies mentioned in this report includes

Arista Networks
Broadcom
Cisco Systems
Dell Technologies
Hewlett Packard Enterprise
Huawei Technologies
IBM
Juniper Networks
Lenovo
NetApp
Oracle
ABB
Alfa Laval
Assa Abloy
Axis Communications
Bosch Security Systems
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
Amazon Web Services (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 Peru
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

For more information about this report visit https://www.researchandmarkets.com/r/fnij46

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