Latin America Data Center Power Market to Worth $490 Million by 2023

Apr 20, 2022

The growing adoption of redundant and efficient infrastructure that reduces power wastage and brings down PUE of data centers to less than 1.5 will drive the growth of the Latin America data center power market.

Arizton’s recent market research report on the data center power market in Latin America provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by type (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by geography (Brazil, Colombia, Chile, and the Rest of Latin America), and offers a detailed competitive analysis.

The Latin America data center power market was valued at USD 389.9 million in 2021 and is expected to reach USD 586.3 million by 2027, growing at a CAGR of 7.03%. The leading service providers are offering monitoring solutions for data centers to gain a larger market share in Latin America.

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The top 3 drivers and trends augmenting the growth of the Latin America data center power market are discussed below:

Power Reliability Growing Data Center Backup Infrastructure Market

The growing need for power reliability will boost the implementation of facilities backup infrastructure in the data center power market in Latin America. The constant fluctuations in the power grid and frequent power outages will encourage data center providers to focus on the procurement of N+N redundant power backup infrastructures such as UPS systems and generators in the Latin American market. Several operators in the market are installing N+4 redundant generators in the facilities to overcome power outages and improve the operational capabilities of these data centers in the Latin American market. Investment in the development and use of on-site renewable energy sources such as wind and solar energy to power data centers will transform the market in Latin America. The data center operators are also designing facilities with dual diverse power feed from separate substations to reduce issues with power fluctuations and reliability. Such innovations will help vendors occupy a larger data center power market size in Latin America.

Check our latest report on - United States Data Center Power Market- Industry Outlook and Forecast 2022-2027

Increase in Adoption of DCIM Solutions

The rising need to reduce power consumption and facilitate end-to-end monitoring of data centers is boosting the adoption of DCIM solutions in the data center power market in Latin America. The increasing investments in the development and deployment of DCIM solutions will help reduce power wastage resulting from the conversion of DC to AC and proper battery monitoring and maintenance in facilities across the region. The implementation of monitoring and management solutions identifies the maintenance of infrastructure to avoid operational failure, thereby reducing operating expenses of the facilities across the Latin American market. The reduced power consumption and the power wastage of modern data centers achieved through end-to-end monitoring and automation of facilities will lead to the evolution of the data center power market in Latin America. Schneider Electric’s StruxureWare, Vertiv’s Trellis, and ABB’s Ability are some of the leading automation platforms available in the Latin American market.

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Tax Incentives for Infrastructure

The increasing number of tax incentives by the government and the land for developing facilities is propelling the growth of the data center power market in Latin America. The Brazilian government offers incentives through Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) program for operators deploying facilities in the region. The incentive includes the purchase of infrastructure that helps improve broadband connectivity throughout the country. Colombian government offers free trade zones for data center construction and now there are more than five free trade zones available in the northern part of Colombia for these investments. Such benefits and tax incentives will boost investments and revenues in the data center power market in Latin America. It is estimated that various countries in Latin America will provide tax incentives for operators that reduce the procurement cost for innovative power infrastructure solutions during the forecast period.

The leading vendors in the Latin America data center power market are ABB, Eaton, General Electric, Schneider Electric, and Vertiv.

The complete overview of the latest market research report on the data center power market in Latin America by Arizton is now available.

The report also offers a detailed study of major trends, drivers, and challenges, and also provides the market size and forecast for major geographical regions and key countries.

Check our latest report on - Data Center Power Market- Global Outlook and Forecast 2022-2027

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