MARKET INSIGHTS

The Brazil data center market is expected to reach USD 4.43 billion by 2028, growing at a CAGR of 8.26% from 2022-2028. Brazil contributes around 50% of data center investments in the Latin American region. In Brazil, São Paulo is the most connected city, with the high availability of digital business and financial centers in the country, making the city a favorable location for facility development. The region is also witnessing a boost in investments in the market due to Brazil’s data localization law, the Lei Geral de Proteção de Dados Pessoais (LGPD), which has passed some regulations to store the data generated within the country. Prominent global cloud services providers such as Amazon Web Services (AWS), Microsoft, Oracle, IBM, Tencent Cloud, Google, and Huawei Technologies have a strong presence in the Brazil data center market. They have created their presence through their cloud region/availability zones, which provide cloud-based services to public and private entities. For instance, B3, the Brazilian stock exchange, partnered with Oracle and Microsoft to migrate its systems to the cloud over ten years.

The Brazil data center market is well connected to several major markets with around 15 submarine cables, followed by the upcoming Firmina submarine cable deployed by Google, which connects Brazil with Argentina, Uruguay, and the US, which will be operational in 2023. Further telecom operators such as Carlo Brazil, Vivo (Telefônica Brazil), TIM Brasil, Algar Telecom, Brisanet Telecommunications, and Sercomtel are involved in the deployment of the 5G network services across the country. Additionally, various industries are installing 5G network services in their business operations to automate services, communication reliability, and remote monitoring. Concerning 5G connectivity, according to KPMG Brazil, around 56% of companies included 5G in their strategic agendas.

KEY HIGHLIGHTS

• As the demand for colocation services in the country is increasing, some Brazilian-based companies are moving into providing colocation services. For instance, TIVIT, a Brazilian-based IT services company, is developing its subsidiary, Takoda, which focuses on colocation services. TIVIT focuses on cloud, digital services, and SaaS services.
• The Brazil data center market is witnessing an increase in the deployment of edge data centers across the country to reduce latency and provide last-mile connectivity. For instance, V.tal, a Brazilian fiber firm part of telecom firm GlobeNet, is planning to develop an edge data center facility in Porto Alegre, Brazil.
• Regarding sustainable energy procurement, hydropower, solar photovoltaic, wind energy, and biomass are the major renewable energy sources available in the country. According to EIA, the country is the largest hydropower generator in South America and the second largest hydropower producer by installed capacity across the world.
• In Brazil, government entities and private organizations are collaborating to improve the digital skill force in the country. The Employment and Competitiveness of the Ministry of Economy (SEPEC/ME), Special Secretary for Productivity, Brazilian Industrial Development Agency (ABDI), and Microsoft develop the “School of Worker 4.0.”It is an e-learning platform nationwide to freely provide digital skill training to around 5.5 million job seekers by 2023.
• In terms of the adoption of AI, IBM's cloud facility in Brazil uses artificial intelligence and hybrid cloud services to provide its customer with high reliability, security, and creation & control of new business models to accelerate the country's digital transformation.

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 states in the country.
• A detailed study of the existing Brazil data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Brazil
  • Facilities Covered (Existing): 51
  • Facilities Identified (Upcoming): 22
  • Coverage: 8 States
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Brazil
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• Brazil's 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

• Colocation service providers such as Ascenty, Scala Data Centers, Equinix, ODATA, Nabiax (Telefonica), HostDime, and Lumen Technologies (CenturyLink) are some of the major investors in the Brazil data center market.
• As a part of renewable energy initiatives, data centers are entering into power purchase agreements with energy providers to increase the use of sustainable energy sources in the country. For instance, Scala Data Centers signed a power purchase agreement of 600 MW with Enel Américas to power its hyperscale data center campus in São Paulo.
• In 2022, the Brazil data center market witnessed investments, majorly from Ascenty, and Scala Data Centers, in around ten facilities expected to be operational during the forecast period.
• The Brazil data center market is also witnessing the entry of foreign companies into the market through the acquisition of local colocation service providers. For instance, in December 2022, Aligned, a US data center firm, announced the acquisition of a Brazilian data center firm ODATA.
• Construction contractors are also involved in developing facilities for private and public entities in the region. For instance, Zeittec, an engineering company, announced in November 2022 that it is involved in developing a new facility for the Federal University of Espírito Santo (UFES) in the city of Vitória in Espírito Santo state.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Sao Paulo
  • Other States (Ceará, State of Minas Gerais, Rio De Janeiro, Paraíba, Paraná, Rio Grande do Sul, and Santa Catarina)
• 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
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Sao Paulo
  • Other States

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, Aceco TI, Constructora Sudamericana, Fluor Corporation, Jacobs Engineering, 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, Equinix, GlobeNet, HostDime, Lumen Technologies, Nabiax, ODATA, Onex Data Center, and Scala Data Centers.