Latin America Data Center Market Analysis Report 2023-2028: Edge Computing and 5G - The Next Frontier for Deployment

DUBLIN, Aug. 3, 2023 /PRNewswire/ -- The "Latin America Data Center Market Landscape 2023-2028" report has been added to  ResearchAndMarkets.com's offering.

The Latin America data center market is poised for significant growth, with investments projected to reach USD 8.81 billion by 2028

The region is witnessing a surge in the adoption of multi-cloud strategies, where businesses are leveraging multiple cloud services from different vendors to cater to diverse application workloads and enterprise databases. This has led to innovations in rack designs, higher power density, and efficient UPS solutions by vendors operating in the market.

Among the top destinations in the region, Brazil stands out as a key player with major cloud service providers like AWS, Microsoft, and Google leading the way. Additionally, investments in new cloud regions are on the rise, exemplified by Google's plans to launch a new cloud region and engineering center in Sao Paulo. Santiago, Chile, is emerging as a data center hub with significant investments from major operators like ODATA, Ascenty, and EdgeConneX.

The presence of several active participants and vendors offering advanced technologies is expected to drive further market growth, giving innovative companies a competitive advantage during the forecast period.

Notable IT and support infrastructure providers in the Latin America data center market include Arista Networks, Cisco Systems, IBM, Dell Technologies, Schneider Electric, and many others, further contributing to the region's promising prospects.

KEY TRENDS

Adoption of Renewable Energy

• Many Latin American countries, including Brazil, Chile, Mexico, Argentina, and Peru, work on diversifying electrical systems and enabling policy and regulatory changes conducive to renewable energy production and adoption.
• In April 2022, HostDime, a Brazilian operator, announced that it would power its facility using 100% solar energy, investing around USD 1.2 million in the solar power farm.
• Chile has a favorable climate for renewable energy. The country's renewable energy production is dominated by solar energy due to the multiple renewable solar energy projects.
• In January 2022, Microsoft announced plans to develop a cloud region in Chile at an investment of over USD 315 million. The cloud region will be powered by 100% renewable energy.

Implementation of Automation & Artificial Intelligence in Data Centers

• In November 2022, GENIA Latinomerica announced that it introduced LATAM 4.0, the fourth industrial revolution across Latin America. It will promote AI and automation.
• Latin American countries identify the benefit of using DCIM systems to monitor and automate their new data centers to overcome potential future challenges. Most vendors in the Latin America data center market that provide power infrastructure invest in software systems, such as StruxureWare from Schneider Electric, Trellis from Vertiv, and the Ability Automation platform from ABB, that track power infrastructure.
• Ascenty's data centers are equipped with automation solutions, where support infrastructure is monitored continuously to reduce outages due to power and equipment failures. ODATA is also equipped with monitoring solutions: ITSM and BMS systems.

Edge Data Center Deployment Fueled by 5G Launch

• 5G is already launched in Mexico, Brazil, and Chile, while Columbia and Argentina run tests for 5G technology. The growth of this technology will influence the network as it will increase the amount of data processed within the servers.
• In September 2022, UOL formed Edge UOL and announced a collaboration with DigitalBridge's Scala Data Centers and AWS to explore the opportunity for edge computing.
• By 2035, Brazil will see economic growth of over USD 1 trillion due to the deployment of 5G technology, according to Nokia. 5G implementation will also drive the deployment of more edge data centers across the country, especially in Tier II and Tier III states.

KEY QUESTIONS ANSWERED:

• How big is the Latin America data center market?
• What is the growth rate of the Latin American data center market?
• What is the estimated market size in terms of area in the Latin America data center market by 2028?
• What are the key trends in the Latin America data center market?
• How many MW of power capacity is expected to reach the Latin America data center market by 2028?

SEGMENTATION INSIGHTS

Segmentation by Facility Type

• Colocation & Hyperscale Self-Built Data Centers
• Enterprise Data Centers

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

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

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• Latin America
• Brazil
• Mexico
• Chile
• Colombia
• Rest of Latin America

A selection of companies mentioned in this report includes

• Arista Networks
• Broadcom
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise
• Huawei Technologies
• IBM
• Juniper Networks
• Lenovo
• NetApp
• Oracle
• ABB
• Alfa Laval
• Assa Abloy
• Axis Communications
• Bosch Security Systems
• Caterpillar
• Cummins
• Daikin Applied
• Delta Electronics
• EATON
• Honeywell
• Johnson Controls
• Legrand
• Munters
• Mitsubishi Electric
• Piller Power Systems
• Panduit
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv
• AECOM
• Aceco TI
• Constructora Sudamericana
• Cundall
• Fluor Corporation
• Gensler
• HDOS
• Hyphen
• Holder Construction
• Jacobs Engineering
• KMD Architects
• PQC
• Quark
• Syska Hennessey Group
• Turner Construction
• Turner & Townsend
• ZFB Group
• Zeittec
• Amazon Web Services (AWS)
• Ascenty
• Ava Telecom
• Air Link Communications
• Belize Network Information Centre
• Blue NAP Americas
• Brac Informatics Centre (BIC)
• Claro
• Digicel
• Entel
• Epic.io
• Equinix
• EdgeConneX
• GlobeNet Telecom
• Gtd Peru
• HostDime
• InterNexa
• IPXON Networks
• KIO Networks
• Lumen Technologies (CIRION)
• Millicom (Tigo Panama)
• Nabiax
• ODATA
• Oxygen
• OneX
• Scala Data Centers
• SONDA
• Telecom Italia Sparkle
• CloudHQ
• DHAmericas
• Microsoft

For more information about this report visit https://www.researchandmarkets.com/r/fnij46

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