Latin America Green Data Center Market Analysis Report 2023-2028: Liquid Immersion & D2C Cooling Adoption Driven by AI & Hpc Applications

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Jan 16, 2024, 21:30 ET

DUBLIN, Jan. 16, 2024 /PRNewswire/ -- The "Latin America Green Data Center Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Latin America green data center market is expected to attain a value of $1.64 billion by 2028, up from $890 million in 2022, growing at a CAGR of 10.75% from 2022-2028.

Among Latin American countries, Brazil, Mexico, Chile, Columbia, Argentina, Paraguay, and Uruguay have actively adopted renewable energy for most of their energy requirements. The Mexican government plans to produce 35% of its electricity from renewable sources by 2024. This objective is part of the efforts to reduce the country's reliance on fossil fuels and to enhance the stability of the electric grid by minimizing the occurrence of power interruptions.

Hyperscale operators such as Google and Microsoft are actively driving renewable energy adoption in Latin America. For instance, in January 2022, Microsoft announced plans to develop a cloud region in Chile at an investment of over $315 million. The cloud region will be powered by 100% renewable energy.

KEY TRENDS

Innovations Data Center Cooling and Power Technologies Are Driving the Market for Green Development

In Latin America, innovations in data center power technology include the adoption of lithium-ion and smart grid UPS systems and DRUPS systems.
Fuel cell-based power backup is also expected to enter the Latin American market in the long term, driving down investments in inefficient diesel generators and the market for efficiencies.
Hydrotreated Vegetable Oil (HVO) Fuel is among the emerging trends concept in the data center market. However, data center operators in Latin America didn't adopt this technology. Still, there is the development from some of the oil companies involved in the development of the HVO fuel stations, wherein it is witnessed that during the forecast period, at least some operators will introduce HVO in their data center facilities.
A tropical test bed is currently in the testing phase in Singapore to make data centers more efficient in a tropical climate. If successful, this can also positively impact the Latin American market and bring down the PUE of facilities further.
Free cooling is also being adopted by data center operators in facilities in countries like Brazil, Chile, Argentina, and the Caribbean, at least partially. For instance, Equinix uses free cooling in its SP3 data center in Sao Paulo.

Government Push Toward Sustainability

Various Latin American governments, including those of Chile, Brazil, and Uruguay, are actively working toward increasing the adoption of renewable energy in the country.
The Development Bank of Latin America has approved a loan of USD 300 million to Uruguay to strengthen its electricity grid and modernize it, driven by the government.

Deployment of Modular Data Centers and Sustainable Materials Gathering Steam

In Latin America, many operators have limited funds for data center development, making it an attractive proposition for deploying modular data centers. Some of the companies in Latin America are involved in investing in the development of Modular facilities. The cost of operating a modular data center is around 30% less than that of a traditional data center facility.
The environmental impact of modular data center deployment is also lower since it entails lower or no usage of concrete and can be constructed in a phased manner, eliminating the need for additional labor.
Plant-based and other sustainable materials such as wood, hemp, and Mycelium, which can revolutionize the construction process for data centers, are also being adopted by data center operators.

Green Data Center Metrics

Policy Drivers
Paris Agreement & Science Based Targets Initiative (Sbti)
Long Duration Energy Storage (Ldes) Council
Re100
Circular Economy
Energy Certifications

Market Opportunities & Trends

Innovative Data Center Power Technologies
Adoption of Advanced Ups Batteries
Software-Defined Data Centers (Sddcs) & AI in Power Monitoring
Microgrids
Sustainable Innovations in Data Center Power Technology
Eco-Diesel Generators
Natural Gas Generators
Fuel Cells
Hvo
Nuclear Energy Generation
Other Innovations
Advanced Data Center Cooling Technologies
Tropical Data Center Test Bed
Free Cooling
Underwater Data Centers
Floating Data Centers
Other Innovative Cooling Technologies
Liquid Immersion & D2C Cooling Adoption Driven by AI & Hpc Applications
Adoption of Advanced IT Infrastructure
Renewable Energy Initiatives
Data Centers Targeting a Pue of < 1.5
Government Push for Green Data Center Development

Market Growth Enablers

Renewable Energy Initiatives by Hyperscale & Cloud Operators
Renewable Energy Initiatives by Colocation Operators
Automation & Intelligent Monitoring Solutions
Deployment of Modular Data Centers

Market Restraints

Rising Carbon Emissions from Data Centers
Increased Water Consumption by Data Centers
Lack of Skilled Professionals
Location Constraints on Green Data Centers

Prominent Data Center Investors

Ascenty (Digital Realty)
Amazon Web Services (AWS)
Ava Telecom
Claro
EdgeConneX
Equinix
Google
HostDime
Huawei Technologies
KIO Networks
Lumen Technologies (Cirion)
Microsoft
ODATA (Aligned)
Oracle
Scala Data Centers
Telecom Italia Sparkle
CloudHQ

Renewable Energy Providers

Acciona Energia
EDP Renewables
Enel Green Power
Engie
Elera Renovaveis
Faro Energy
GreenYellow
HDF Energy
Iberdrola
Mainstream Renewable Power
RZK Energia
Shell
The AES Corporation
TotalEnergies

Segmentation by Infrastructure

Electrical Infrastructure
Mechanical Infrastructure
General Construction

Segmentation by Electrical Infrastructure

UPS Systems
Generators
Other Electrical Infrastructures

Segmentation by Mechanical Infrastructure

Cooling Systems
Racks
Other mechanical Infrastructure

Segmentation by Cooling Systems

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

Segmentation By General Construction

Core and Shell Development
MEP & Architectural Design Services
Physical Security & Fire Safety Systems
DCIM/BMS Solution

For more information about this report visit https://www.researchandmarkets.com/r/8djap3

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