Argentina Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

INDUSTRY INSIGHTS

The Argentina data center market size will witness investments of USD 296 million by 2028, growing at a CAGR of 9.36% during the forecast period. Argentina is leading in digital education with the Learn Connected program, offering classes from kindergarten to high school in digital literacy, programming, and robotics. The country's commitment to embracing digital innovations and entrepreneurial spirit promises a bright future in Latin American digital transformation.

The Argentina data center market is set to become a prominent player in the Latin American data center market, fueled by advantageous factors such as affordable electricity rates, governmental backing for data center expansion, robust data protection legislation, and operator tax incentives. These elements will propel the market's growth in the coming years. Furthermore, in the region, there is a noticeable surge in the adoption of cloud services by both organizations and the government. Telecom Argentina, a comprehensive provider of connectivity services, entertainment, and technological solutions, has strategically incorporated Google Cloud into its hybrid multi-cloud approach, aligning with its overarching cloud-first strategy.

In line with its dedication to the Paris Agreement on climate change, the country has outlined its nationally determined contribution (NDC) to limit its net emissions to 349 million tonnes of CO2 equivalent by 2030. Also, the Argentina data center market distinguishes itself as a highly connected country in Latin America, featuring seven operational submarine cables and an additional one in construction. Noteworthy is Google's recent contribution to this extensive submarine network with the introduction of Firmina, a new cable scheduled for launch in 2024.

KEY HIGHLIGHTS

• In the Argentina data center market, Buenos Aires and Cordoba are the hubs for data center development, while other cities are also expected to grow during the forecast period.
• Argentina provides enticing tax incentives and a business-friendly atmosphere through the "Knowledge Economy Law," aiming to attract operators for facility development. For instance, the AWS stands to benefit from an export tax exemption (as part of the free-trade zone) and is exempt from national and provincial taxes on energy consumption.
• The Argentina data center market stands out as one of the well-connected nations in Latin America, boasting seven operational submarine cables, with an additional one currently under construction. Notably, Google recently contributed to this robust submarine network by introducing Firmina, a new cable slated for launch in 2024. This submarine cable will have landing points in Brazil, the United States, and Uruguay, further enhancing regional connectivity.
• In July 2023, the government approved a total renewable energy capacity of 633.7 megawatts (MW) through its latest procurement initiative. This includes the green light for 44 upcoming solar farm projects equipped with photovoltaic (PV) capacity.
• Argentina has initiated the "RenovAr" program to produce 20% of its electricity from renewable sources by 2025. This deliberate step supports their sustainability objectives and contributes positively to the environment and the community.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Argentina colocation market revenue.
• An assessment of the data center investment in Argentina by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Argentina data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Argentina
  • Facilities Covered (Existing): 19
  • Coverage: 2 Regions
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Argentina
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Revenue
• The Argentina data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• The Argentina data center market has a presence of several global support infrastructure providers such as Caterpillar, Eaton, Cummins, ABB, Legrand, and others.
• Several global IT infrastructure providers, such as Cisco Systems, Arista Networks, Lenovo, NetApp, and others, have a strong presence in the Argentina data center market.
• Some key investors in the Argentina data center market are Lumen Technologies, Telecom Argentina, Nabiax, and EdgeConnex in 2023.
• Datacenter firms in Argentina are partnering with construction contractors to enhance efficiency and meet the evolving requirements of these facilities. AECOM, Fluor Corporation, and Constructora Sudamericana are actively engaged in the construction sector for data centers in Argentina.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region(Area and Power Capacity)
  • Buenos Aires
  • Cordoba
• List of Upcoming Facilities in the Region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Argentina data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, and Oracle.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Constructora Sudamericana, Fluor Construction, and Quark.
• Support Infrastructure Providers: ABB, Alfa Laval, Assa Abloy, Caterpillar, Cummins, Eaton, Johnson Controls, KOHLER-SDMO, Legrand, Narada, Rittal, Schneider Electric, STULZ, Siemens, and Vertiv.
• Data Center Investors: Lumen Technologies, Telecom Argentina, Nabiax, Claro, and EdgeConneX.