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
|MARKET SIZE (INVESTMENTS)||USD 7.8 BILLION (2026)|
|MARKET SIZE (AREA)||1 MILLION SQUARE FEET|
|MARKET SIZE (POWER CAPACITY)||214 MW (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|
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.
This research report includes a detailed segmentation by:
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.
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.
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.
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.
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.
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.
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.
By IT Infrastructure
By Electrical Infrastructure
By Mechanical Infrastructure
By Cooling Technique
By General Construction
By Tier Standards
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