Brazil Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Brazil data center market will witness investments of USD 4.72 billion by 2029, growing at a CAGR of 7.16% during the forecast period. In Brazil, beyond São Paulo, emerging data center hubs include Porto Alegre, Hortolândia, Ceará, Minas Gerais, Rio de Janeiro, Espírito Santo, Mato Grosso do Sul, and Paraná witnessing investments from major colocation operators. Further, the average occupancy rate of data centers across Brazil is more than 85%. In São Paulo, the majority of data centers have an occupancy rate of more than 90%.

The Brazil data center market is booming because of rapid digitization, an increase in cable connectivity, 5G connectivity services, shifting the on-premise workloads to cloud or colocation platforms, and adoption of AI, big data, and IoT technologies. Additionally, the establishment of data localization legislation, such as the Lei Geral de Proteção de Dados Pessoais (LGPD), spurred investments in data centers as regulations mandated local data storage. Furthermore, AWS, Microsoft, Oracle, IBM, Tencent Cloud, Google, and Huawei Technologies are some major cloud service providers with a cloud presence in the Brazil data center market. In November 2023, Huawei announced a third cloud availability zone in Brazil in the first quarter of 2024, expanding its regional presence.

In Brazil, various industries such as agriculture, telecom, and oil and gas are embracing IoT technology, which drives these sectors to adopt advanced digital platforms and increase the efficiency of their services. For example, In October 2023, BWS IoT collaborated with emnify's IoT SuperNetwork and multi-operator SIM card, increasing the connections to one million devices by 2024. This collaboration expands BWS IoT's product and service capabilities nationwide and globally.

KEY HIGHLIGHTS

• In Brazil data center market, São Paulo is the premier hub for investments in the country, driven by substantial contributions from industry leaders such as Microsoft, Huawei, Cirion Technologies, Ascenty, Scala Data Centers, CloudHQ, and Elea Digital.
• Brazil stands out with 15 existing undersea cables that connect Brazil to other Latin American countries, Portugal, Cameroon, Angola, and the US. The Brazil data center market is witnessing the deployment of an upcoming submarine cable, the Firmina submarine cable, by Google, connecting Brazil with Argentina, Uruguay, and the US.
• Major telecom companies such as TIM Brasil, V.tal, Vivo (Telefônica Brazil), Carlo Brazil, Algar Telecom, Brisanet Telecommunications, and Sercomtel are involved in the commercial deployment of 5G services across Brazil. For instance, in February 2023, Cisco Systems and V.tal signed a partnership to enhance neutral multi-tenant fiber optic network capacity in Brazil and expand the 5G service network connectivity and internet.
• Brazil aims to augment its power generation by 10 GW in 2023, with 90% sourced from wind and solar energy, as per the National Electric Energy Agency (ANEEL). EDP Energias, TotalEnergies, Engie Brasil Energia, Atlas Renewable Energy, and AES Brasil are some of the major renewable energy companies in Brazil that are involved in various investments in renewable energy plants, PPAs, etc.,
• Brazil is developing both Free Trade Zones (FTZs) and Export Processing Zones (EPZs). It currently has 16 EPZs across 15 states. FTZs include the Manaus FTZ, the Macapa FTZ, and the Tabatinga FTZ, among others.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Brazil colocation market revenue.
• An assessment of the data center investment in Brazil 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 Brazil 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 Brazil
  • Facilities Covered (Existing): 68
  • Facilities Identified (Upcoming): 21
  • Coverage: 9 States
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Brazil
  • Market Revenue & Forecast (2023-2029)
  • Retail Colocation Revenue
• The Brazil 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

• In Brazil, data center providers Ascenty, Angola Cables, Ava Telecom, Cirion Technologies, Equinix, GlobeNet, Microsoft, ODATA (Aligned Data Centers), Onex Data Center, Quântico, Scala Data Centers, V.tal are involved in the development of data center facilities, which are opened or under construction in 2023.
• The Brazil data center market is also witnessing investment from new entrants in Brazil, such as CloudHQ, Surfix Data Center, and EVEO.
• In Brazil data center market, the majority of the colocation and hyperscale operators are involved in moving towards renewable energy procurement for facility operations. For instance, in September 2023, Microsoft Brazil signed a 15-year power purchase agreement (PPA) with AES Brasil to procure 150 MW of wind energy. AES Brasil will start supplying sustainable electricity to Microsoft from July 2024.
• Some global and local operators are acquiring local colocation operators, which creates opportunities to develop data centers through joint ventures. For instance, in May 2023, Aligned Data Centers, a US-based data center operator, completed the acquisition of ODATA, a Brazilian data center company.
• The Brazil data center market has local and global construction contractors catering to major market operators. Afonso França Engenharia is developing CloudHQ’s data center campus in Paulinia, V.tal data centers in Fortaleza and Porto Alegre.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • São Paulo
  • Other States
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Brazil 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 & Switchgear
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH Units
  • Chillers Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Economizers & Evaporative 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
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Juniper Networks, Lenovo, NetApp, Oracle, Pure Storage.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Afonso França Engenharia, Aceco TI, Constructora Sudamericana, Fluor Corporation, Jacobs Engineering, Modular Data Centers, Quark, ZFB Group, Zeittec.
• Support Infrastructure Providers: ABB, Alfa Laval, Bosch Security and Safety Systems, Caterpillar, Cummins, Daikin Applied, Delta Electronics, Eaton, Honeywell International, Johnson Controls, Legrand, Munters, Mitsubishi Electric, Piller Power Systems, Panduit, Rittal, Rolls Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: Ascenty, Angola Cables, Ava Telecom, Cirion Technologies, Elea Digital, Equinix, GlobeNet, HostDime, Lumen Technologies, Microsoft, Nabiax, ODATA (Aligned Data Centers), Onex Data Center, Quântico, Scala Data Centers, Teccloud, V.tal.
• New Entrants: CloudHQ, Eveo, Surfix Data Center.