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LATIN AMERICA DATA CENTER MARKET SIZE TO CROSS USD 7.8 BILLION BY 2026, GROWING AT A CAGR OF 7.6% DURING THE FORECAST PERIOD

Latin America Data Center Market Size, Share, Trends Analysis Report by IT Infrastructure (Servers, Storage, and Network); Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, PDUs, and Other Electrical Infrastructures); Mechanical Infrastructure (Cooling Systems - CRAC & CRAH Units, Chiller Units, Cooling Towers, Dry Coolers, & Condensers, Economizer & Evaporative Coolers, and Other Cooling Units), Racks, and Other Mechanical Infrastructure, Cooling Technique (Air-based Cooling and Liquid-based Cooling)); General Construction (Core and Shell Development, Installation and Commissioning Services, Engineering and Building Designs, Physical Security, and DCIM/BMS); Tier Standards (Tier I & II, Tier III, and Tier IV); and Geography (Latin America); Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2021–2026

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Most Exhaustive Report

279 Pages

40 Tables

88 Charts

1 Regions

4 Countries

51 Companies

9 Market Segment

LATIN AMERICA DATA CENTER MARKET REPORT SCOPE

Report Attribute Details
MARKET SIZE (INVESTMENTS) USD 7.8 BILLION (2026)
MARKET SIZE (AREA) 1 MILLION SQUARE FEET
MARKET SIZE (POWER CAPACITY) 214 MW (2026)
CAGR 7.6% (2021–2026)
Base Year 2020
Forecast Year 2021–2026
Market Segments Latin America Data Center Market Size, Share, Trends Analysis Report by IT Infrastructure (Servers, Storage, and Network); Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, PDUs, and Other Electrical Infrastructures); Mechanical Infrastructure (Cooling Systems - CRAC & CRAH Units, Chiller Units, Cooling Towers, Dry Coolers, & Condensers, Economizer & Evaporative Coolers, and Other Cooling Units), Racks, and Other Mechanical Infrastructure, Cooling Technique (Air-based Cooling and Liquid-based Cooling)); General Construction (Core and Shell Development, Installation and Commissioning Services, Engineering and Building Designs, Physical Security, and DCIM/BMS); Tier Standards (Tier I & II, Tier III, and Tier IV)
Geographic Analysis Latin America
Countries Covered Brazil, Chile, Colombia, Mexico, and Other Latin American Countries

INDUSTRY INSIGHTS

The Latin America data center market size to cross USD 7.8 billion by 2026, growing at a CAGR of 7.6% during the forecast period. The data center market in Latin America is observing an increased investment in modular, containerized, and POD data center deployment. While most facilities in the region are greenfield construction types, the development of modular data centers is growing steadily, thereby contributing to the Latin America data center market growth. Telecommunication suppliers are increasingly inclined to adopt modular models in Latin America. Modular infrastructure is energy-efficient and is designed to sustain high-rack density. The expenditure to run a modular information center is about 30% less than traditional brick-and-mortar facilities. Therefore, the demand for modular infrastructure is expected to increase during the forecast period.

In 2020, with the outbreak of the COVID-19 pandemic, the demand for data centers increased considerably. In Q1 and Q2 2020, the demand for data center services grew significantly due to the pandemic, with the majority of the global workforce shifting to remote working. The demand for colocation services led to strong utilization of existing data center space and increased service providers' revenue by over 10% in those two quarters. 

SNIPPETS

  • Brazil contributed to over 40% of the overall investment in Latin America in 2020.
  • Ascenty, Bitglass, Etix Everywhere, Equinix, Hostdime, ODATA, Scala Data Centers, and TIGO (Millicom) were the major contributor to market investments.
  • Several data centers are likely to equip UPS and generator systems with N+N or 2N redundancy.
  • The use of DRUPS systems is likely to increase during the forecast period because of frequent power outages and high susceptibility to natural disasters.
  • Evaporative coolers and air/water-side economizers are expected to grow in Chile, Brazil, and Colombia.
  • Tier III and Tier IV facilities' investments are projected to grow due to increased awareness of redundant components to support critical applications.

LATIN AMERICA DATA CENTER MARKET SEGMENTATION

This research report includes a detailed segmentation by:

  • IT Infrastructure 
  • Electrical Infrastructure 
  • Mechanical Infrastructure
  • Cooling Technique   
  • Cooling Systems
  • General Construction    
  • Tier Standards 
  • Geography 

INSIGHTS BY IT INFRASTRUCTURE

The server infrastructure market in Latin America has witnessed strong growth in the last few years. ODM servers' procurement by hyperscale data center facilities and other enterprises is expected to grow over the next 2–3 years. Server systems based on x86 architecture servers are the most popular systems among enterprises and managed hosting service providers. Most modern operators adopt server infrastructure that matches their workload requirements.

Most businesses in Latin America use cloud storage and on-premise data centers to store critical data. The storage market has witnessed high growth in the past few years due to increased digitized initiatives and network connectivity improvement. Advances in technology and increased innovations in storage devices have increased reliability, boosting the market growth. The increase in bandwidth demand, data center consolidation, and virtualization are significant factors driving network devices, ethernet port switches, controllers, and adaptors. 10/25 GbE switches are expected to experience a high growth rate in Latin America during the forecast period.

INSIGHTS BY ELECTRICAL INFRASTRUCTURE

The adoption of static VRLA batteries-based UPS systems designed with up to 750 kVA capacity with N+1 redundant configuration is growing in Chile. Most facilities are equipped with up to 500 kVA VRLA batteries-based UPS systems with N+1 redundant configuration in Colombia. The market is likely to observe diesel generators' adoption and transfer switches and switchgears with minimum N+N redundancy across data centers. The demand for monitored and metered PDUs is expected to grow during the forecast period due to the need to reduce OPEX across data centers. Several facilities in Mexico are furnished with up to 1000 kVA UPS systems. Large operators are likely to procure over 1,000 kVA UPS systems. The market will witness the adoption of diesel generators with minimum N+N redundancy across data centers.

INSIGHTS BY MECHANICAL INFRASTRUCTURE

The majority of Brazil's facilities utilize water-based cooling systems, especially evaporative, that partially support free cooling. Large data centers in Brazil are expected to include CRAH units, whereas small facilities are likely to adopt CRAC units during the forecast period. There is also increased adoption of evaporative coolers that include partial cooling with indoor CRAC units in a few Latin American countries. Some facility operators use a combination of CRAH and direct expansion cooling techniques. In Chile, data centers use chilled water-cooling systems and air-based cooling systems with CRAH units, free cooling units with CRAC units, or free cooling chillers. 

INSIGHTS BY GENERAL CONSTRUCTION

The Latin American market is likely to witness an increase in the construction of greenfield projects. Modular construction is expected to add significant investments to the market during the forecast period. Construction contractors in Chile are generally developing greenfield and modular data centers. In terms of physical security, the adoption of security cameras and access control systems for 24x7 monitoring is growing across the region. The use of infrastructure-based monitoring solutions is also high in the market; however, integrated facility monitoring is expected to grow during the forecast period.

INSIGHTS BY TEIR STANDARDS

45 out of 185 Tier III certified facilities in Latin America are in Brazil. Most data centers are built with a minimum of N+1 redundancy in power infrastructure that is Tier III standards. Ascenty, Axtel, ODATA, Equinix, Angola Cables, CenturyLink, GTD Group, Telefonica, and KIO Networks are major Uptime Institute certified data center operators. Several data centers built in recent times are of Tier III standards due to an increased need for redundant components to support critical applications in data centers. Tier IV facilities are witnessed in Brazil, Chile, Colombia, Ecuador, Mexico, Uruguay, Costa Rica, Guatemala, and the Dominican Republic.

INSIGHTS BY GEOGRAPHY

Brazil is expected to observe the highest investments in the Latin America data center market. With the increasing internet penetration among consumers and the growing cloud-based services by businesses in the region, data centers' demand is growing significantly, which can be identified through continued investment in data center operations. Similarly, the growing demand for cloud-based services, the Internet of Things (IoT), and big data analytics in Chile has increased data center investments in recent years. In Chile, the high usage of social media platforms such as Facebook, Instagram, Twitter, and Snapchat will increase data generation and increase storage needs.

INSIGHTS BY VENDORS

The Latin America data center market observes an influx of IT and supports infrastructure providers, investors, and construction contractors. Innovations in IT and support infrastructure are expected to increase vendors' market share in Brazil, Chile, Colombia, and Mexico due to the increased mega data centers' construction. Vendors are also partnering with modular data center developers to grow revenue, and this trend is expected to grow during the forecast period. The market is likely to witness new entrants' entry that provides modular data center solutions, DCIM solutions, installation and commissioning services, and physical security services.

The Latin America data center market research report includes in-depth coverage of the industry analysis with investments and forecast insights for the following segments:

By IT Infrastructure 

  • Servers
  • Storage
  • Network

By Electrical Infrastructure 

  • UPS Systems
  • Generators
  • Transfer Switches and Switchgears
  • PDUs
  • Other Electrical Infrastructures

By Mechanical Infrastructure

  • Cooling Systems
    • CRAC & CRAH Units
    • Chiller Units
    • Cooling Towers, Dry Coolers, & Condensers
    • Economizers & Evaporative Coolers
    • Other Cooling Units
  • Racks
  • Others Mechanical Infrastructure
    • Pump Systems
    • Ducts
    • Piping Units and Valves
    • Boilers
    • Fire Protection
    • Suppression Systems
    • Sprinklers

By Cooling Technique    

  • Air-based Cooling Technique
  • Liquid-based Cooling Technique

By General Construction    

  • Core and Shell Development
  • Installation and Commissioning Services
  • Engineering and Building Designs
  • Physical Security
  • DCIM/BMS

By Tier Standards 

  • Tier I & II
  • Tier III
  • Tier IV

By Geography

  • Latin America
    • Brazil
    • Chile
    • Colombia
    • Mexico
    • Other Latin America Countries

Frequently Asked Questions

The Latin American market is expected to reach USD 7.8 billion, growing at a CAGR of 7.6%.
Increased digitization, migration of data from on-premise to colocation and cloud platforms due to the outbreak of the COVID-19 pandemic and the increased popularity of modular data center deployment are expected to drive the market.
The inclusion of automation and AIs in data center infrastructure is expected to decrease maintenance expenditure, reduce equipment failures and prevent frequent power outages.
Hyperscale investment in the region, the introduction of the 5G network, leading to increased investment in edge computing, and the procurement of high-performance HDD drives are increasing the investment in edge computing are expected to offer several market opportunities. However, an increase in power outages and the increase in security breaches in data centers are likely to hinder the market growth.
By IT infrastructure, Arista, Broadcom, Cisco, Dell Technologies, HPE, and Huawei are the key players in the Latin America data center market.
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