Latin America Data Center Market Size to Reach Revenues of USD 7.8 Billion by 2026 - Arizton

Latin America Data Center Market Size to Reach Revenues of USD 7.8 Billion by 2026 - Arizton

PR Newswire

CHICAGO, Feb. 1, 2021

CHICAGO, Feb. 1, 2021 /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this Latin America data center market report.


The Latin America data center market is expected to grow at a CAGR of over 7.6% during the period 2020−2026.

Key Highlights Offered in the Report:  

  1. Latin America market contributed to around 2% of the overall data center investment in 2020, with Brazil leading the market with 40% of the overall investment.
  2. Though there is an abundance of renewable energy in Latin America, especially wind and solar energy, the adoption of renewable energy among data centers is still low.
  3. Colocation data center operators such as Ascenty, Bitglass, Etix Everywhere, Equinix, HostDime, ODATA, Scala Data Centers, and TIGO (Millicom) leads market investment in Latin America.
  4. Latin America market is expected to witness an increase in the use of lithium-ion batteries and DRUPS systems during the forecast period.
  5. Significant M&A transactions are taking place in the Latin America market, where global companies are acquiring local data center companies to expand their foothold in the region; for example, the acquisition of UOL DIVEO by Scala Data Centers and the acquisition of the Axtel data center by Equinix.

Key Offerings:

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Latin America Data Center Market – Segmentation

Latin America Data Center Market by IT Infrastructure 

Latin America Data Center Market by Electrical Infrastructure 

Latin America Data Center Market by Mechanical Infrastructure

Latin America Data Center Market by Cooling Technique 

Latin America Data Center Market by General Construction  

Latin America Data Center Market by Tier Standards 

Latin America Data Center Market – Dynamics

In Latin America, there has been significant change in the IT infrastructure across the data centers. The computing power has grown significantly due to the growth in demand for solutions such as cloud computing, big data analytics, and Internet of Things (IoT) across several industry verticals such as BFSI, healthcare, government, and heavy industries. The growth of cloud-based services has increased the utilization of IT infrastructure and reduced the number of comatose servers across data centers. Modern data centers in Latin Americas are deployed with a rack power density of 4–15 kW among data centers. The operational rack power density across Latin American data centers is 5–7 kW, which is expected to grow to 10–12 kW by 2026, owing to growth in deployment of high-performance computing (HPC) infrastructure during the forecast period.

Key Drivers and Trends fueling Market Growth:

Latin America Data Center Market – Geography

Colocation providers are investing in seven data centers that are to be opened and constructed during 2020−2021. In 2020, the major colocation providers in the market included Ascenty, Equinix, and Scala Data Centers. For instance, Equinix is investing over $80 million in the Sao Palou data center, namely, SP3 Phase III. The market will attract higher investments from colocation providers during the forecast period. The investments in colocation data center facilities are increasing every year in the country where even hyperscale operators are investing in opening new cloud regions, thereby increasing colocation demand. In 2020, Microsoft planned to open a cloud region in Rio de Janerio that is expected to be operational in 2021. Even Amazon Web Services is investing in opening a cloud region in Sao Paulo, Brazil.

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By Geography

Prominent Data Center Critical (IT) Infrastructure Providers

Prominent Data Center Support Infrastructure Providers

Prominent Data Center Construction Contractors

Prominent Data Center Investors

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About Arizton:

Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

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